7 Compelling Reasons Africa is the Next Viable Investment Destination
Because the future is Africa.
Africa is a gold mine. But does most of the world realise this?
With a growing population, rapid urbanization and a thriving tech sector, Africa offers great investment potential. The continent has abundant natural resources and a young, educated labour force that can drive innovation and entrepreneurship. Moreover, investing in Africa can help promote economic growth, create jobs, and reduce poverty,
Below are 7 compelling reasons investors should consider the continent as their next big move:
- Massive market potential: Africa’s population is 1.4 billion people and rising. That figure is equivalent to 16.72 per cent of the total world population. By 2050, Africa’s population is projected to be twice its current figure, about 2. 8 billion people. Now, isn’t that a lot of potential customers?
- Booming middle class: Within Africa’s numbers is a middle class expected to increase by 42 million in seven years. This segment of people will account for one-third of the continent’s population, translating into more consumer spending.class expected
- Growing tech ecosystem: Africa has one of the fastest-growing mobile phone markets in the world. Over 90 per cent of its inhabitants have access to the internet via mobile phones. Let’s not forget the start-up tech ecosystem in the continent which has attracted most of the venture capital funding in the last few years.
- Untapped resources: Africa has the world’s largest reserves of cobalt, platinum, and diamonds; natural resources that can serve both internal and external purposes for its citizens and the world at large. It also has 60 per cent of the world’s uncultivated land mass. These resources provide varied, untapped opportunities.
- Youth demographic: The median age in Africa is 19.7 years. 60 per cent of the continent’s population is below 25 years. In other words, Africa houses a vibrant and strong labour market, innovators, consumers, entrepreneurs, and every other kind of human resource required to progress.
- Natural heritage: Africa has the densest wildlife population, the lushest flora, the most spectacular panoramic landscapes, amazing beaches, and cultural diversity. It is a treasure trove of natural riches, and boasts seven wonders: The Pyramids of Giza, Egypt; Mount Kilimanjaro, Tanzania; Victoria Falls, Zambia & Zimbabwe; the Virunga Mountains, Rwanda & Uganda; Fish River Canyon, Namibia; Nyika Plateau National Park, Malawi; and Bazaruto Archipelago, Mozambique. Its top five most beautiful countries are Kenya, Namibia, South Africa, Tanzania, and Uganda. Africa is a tourist’s fantasy.
- First-mover advantage: The Chinese Proverb, “The best time to plant a tree was 20 years ago. The second-best time is today,” applies here. Investing in Africa today would give investors a first-mover advantage. It would provide the opportunity to try different things, and as the African economy grows, so would the competition for investment opportunities.
This article, posted as LinkedIn slides by Eunice Ajim, first appeared on April 24.
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