Africa as a continent, investment destination and market is visually and materially underestimated.
- Africa has as many cities with a population of 1 million as Europe and North America combined
- Africa has a youthful (65% by 2020) and growing population in contrast to the ageing and declining populations in the developed countries
- Africa’s consumer-facing sectors (consumer goods, telecom, banking) are growing two to three times faster than those in countries belonging to the OECD
- Africa’s Retail market (a big growth indicator) is beginning to converge
- IT and telecommunications are driving tremendous growth on the continent across multiple sectors (healthcare, Financials, Education, Transportation/Logistics, Agriculture, Real Estate, Retail, Energy, Information etc.)
- Extreme poverty has been halved in the past decade
- Emerging middle class is driving demand in multiple sectors
- The real “Last Frontier” for quantum growth
Sub Saharan Africa has maintained its strong growth trajectory with a young population of 853 Million, a GDP of over $3 Trillion and estimated to have over 50% of the world’s uncultivated farmland and vast reserves of other natural resources. The countries of the region have turned the corner towards growth with economic reforms tak-ing root along with democracy and increasing political stability.
Sub Saharan Africa widespread growth trajectory has sustained in the face of a spluttering world economic recovery. Albeit with dif-ferent rates, most countries in the region recorded growth rates that where thought unattainable a few decades ago.
Its countries differ in their relative income levels, economic drivers, population and democratic/government institutions. Its steady trans-formation from commodity exporting / raw material extraction economies to more diversified sustainable economies with an ever increasing domestic consumption is an enabling environment for at-tractive long term returns in high growth markets with attractive valuations.
The financial markets of Sub Saharan Africa also display a strong growth trajectory as many countries/regions now have stock ex-changes where securities of local and some international companies are traded. There is also a progressively defined monetary policy re-gime with increasing issuance of domestic bonds and bills which are now replacing foreign borrowing. While the regulation of the finan-cial markets are still evolving they are improving rapidly and proved resilient through the global economic collapse of 2008 and the civil war in Cote d’Ivoire in 2011.