Published On: Fri, Apr 22nd, 2016

The macroeconomics across Africa are impressive: Geoffrey White, CEO, Agility Africa

indeksThe world in 2016 is very challenging; energy prices have collapsed, China’s economy has slowed; political instability is amok in the Middle East; ISIS wages open war; Russia has resumed its colonial ambitions and Europe is struggling to survive the difference in economic cultural attitudes between the North and South, compounded by the influx of migrants. Japan has negative interest rates.

In contrast to this worrying global scenario, Africa seems less threatening and potentially more interesting as an investment option than it has done for decades.

The macroeconomics across the continent are impressive. Unlike maturing developed markets, Africa has a young burgeoning population that will reach 2 billion by 2050 that is rapidly urbanizing creating a demand for everything. This nascent consumer market has an incredibly high propensity to spend and is attractive to the world’s manufacturers who have transitioned from trying to understand the ‘African opportunity’ to working out ‘how to execute’ in this new market motivated by the difficult times in traditional markets and seeking new growth frontiers.

Outside of its indigenous growth, Africa has two globally significant areas of potential. Firstly, it now has proven reserves of as much as 15% of the world’s energy resources. Secondly, Africa has 60% of the world’s uncultivated arable land. With a global population expanding from 6 billion to 9 billion this will play an essential role in feeding not only Africa, but the world. >>more