admin‘More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge.’ Africa’s economy is projected to continue growing at between 2 percent and 3 percent above the global average over the next five years, helping it retain its position as one of the key emerging markets for 2015. However, competition from other emerging markets across the globe would continue to increase.
Polity reports that this is according to Gordon Institute of Business Science (GIBS) dynamic markets centre director Dr Lyal White, who cited five ‘drivers and shapers’ of the continent’s future growth, as identified in the GIBS 2015 Dynamic Market Index (DMI).
These included elections; commodity prices; terrorism and insurgencies; Ebola; and the end of the Millennium Development Goals and the introduction of Sustainable Development Goals. The DMI measured the performance and progressive change of the institutional structure and economic capabilities of countries.
Although some companies looking to invest in Africa and more so, South Africa, remain ‘extremely bullish’ about the development of the continent, further investment in key economic drivers is needed.
These, says GE Marine global president and CEO Tim Schweikert, quoted in an Engineering News report, include agriculture, which will triple in size, topping $1trn by 2030, infrastructure development and greater investment in tourism.
Speaking at a US-Africa business opportunities seminar, hosted by the Johannesburg Chamber of Commerce and Industry, Schweikert noted that while China and India were slowing down in growth, Africa had shown ‘huge potential’, but some challenges remained.
Schweikert noted that although Africa had the world’s fastest growing air transport industry, the continent’s approach towards an open sky policy was a significant impediment to regional integration and intercontinental trade.
He added that the Economic Community Of West African States, the Southern African Development Community and the Common Market for Eastern and Southern Africa were not integrated, which hampered mobility. ‘The East African Community is the only trading block that is aggressively pursuing integration.’
Current African cities will continue to expand and new cities will rise across the continent, PwC said in the first edition of its Into Africa — the continent’s cities of opportunity report. Fin24 reports that PwC said mega trends would drive growth opportunities in the real estate industry across the African continent — these mega trends included rapid urbanisation and demographic changes. ‘The pace of change in the world is accelerating, with a series of transitions, known as global mega trends, transforming the way in which business and society operate,’ real estate leader for PwC Africa, Ilse French, said.
‘More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge.’
In the PwC report eight drivers for growth were identified, including industrialisation across Africa, infrastructure shortages creating opportunities for investment and technology that would impact business and building practices.
‘It would be easy to underestimate the impact of global mega trends on Africa. After all, Africa’s real estate markets have traditionally lagged behind developed and many developing economies,’ said French. – Fin24.
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