The Africa Narrative – A Few Pointers

Demographic dividend: With over 1.2 people, there is a vast population within the continent. Access either to single country like Nigeria or economic blocks like EAC or SADC provide a huge market. It is estimated that by 2050, almost 20 percent of the world’s population will live in sub-Saharan Africa.

Innovation and customized solution: Some unique challenges in Africa call for localized solutions. Innovation and customization of solutions is taking place across the continent. For example, the financial deepening through mobile money services beyond conventional banking.

FDI more than Aid: Since 2008, the amount of foreign direct investment has surpassed the foreign aid to the continent. More important, investors realize the return on their investment in Africa is relatively higher. The volume may still be low compared to other global markets. However, as incomes increase within the continent, we expect both value and volume to be high. In addition, intra-Africa FDI has increased, implying growth from within the continent is a key driver.

The African consumer: With this growth comes discerning consumers who want to improve their lifestyle. Consumer behaviour will change with time as people incomes improve. Will the change in consumer behaviour within the continent follow the trend in other developed markets? Only adequate research and time will tell.