Population
According to a McKinsey report, the region is expected to enjoy the fastest urbanisation of any region in the world, and to have a larger workforce than either India or China by 2034. This opens up incredible opportunities for the continent’s 54 nations.
Source: African Business, May 2017
Africa’s second largest oil producer has set 23rd August 2017 as the date of historic general elections that will see president José Eduardo dos Santos step down after 38 years in power. He will, however, retain control of the ruling MPLA, a party which has selected defence Minister João Lourenço as its candidate in the election.
Source: African Business, May 2017
Is the worst of Africa’s downturn really over?
The president of the AfDB predicted that Africa’a economies will grow by 3,7 % in 2017, but some find this forecast overoptimistic.
The African Development Bank (AfDB) believes that Africa is over the worst of the economic downturn. As a big lender to African projects, it is obviously in the Bank’s best interests to talk up the continent’s economic prospects.
Speaking to Bloomberg in late September of 2016 AfDB president Akinwumi Adesina said “We have a situation of economic headwinds but African economies are quite resilient. We have 19 countries growing at 3- 5 % and 21 countries growing over 5 %. Afica isn’t falling apart. The ‘Africa Rising Story’ isn’t over”.
The AfDB forecasts continental growth of 3,5 % this year, rising to 3,7 % in 2017 and 4,2 % in 2018. There is therefore unlikely to be a return to the 6,8 % growth of sub-Saharan Africa averaged between 2003 and 2008 but the Bank does expect GDP to outpace the population rise, giving figures that can best be described as “modes”.
Whatever the rate of continental growth, the overall figure is almost certain to be dragged down by the two biggest economies in sub-Saharan Africa, with South-Africa stagnant and Nigeria in its first recession for a quarter of a century.
The IMF certainly does not agree with these projections. In October it cut its growth forecast for sub-Saharan Africa for 2016 to 1,4 %, which would be the lowest rate this century. The IMF’s breakdown of growth rates is particularly interesting. It forecasts an average of 0,3 % this year for the resource rich countries, while those without such natural resources will grow by an average if 5,6 %.
Source: African Business, December 2016
Historically, fast growing African tech companies needing an immediate capital injection would have to reach out to foreign investors for this funding.
The need for investment, whether foreign or domestic, is crucial to both established an startup technology companies in Africa.
As most companies are unprofitable for a couple of years, capital is required to disrupt the current status.
Positive trends
The changing demographics in most African countries are helping consumer focused technology companies to reach better sales figures. A perfect storm of increasing smartphones penetration, improving disposable income and the rise of a highly connected younger generation is boosting this sector
Positive trends
There are almost 1bn Africans on the continent; millions are coming online each week, almost via the mobile, which is what’s driving demand. Soon, there will be more than 400m smartphones on the continent. The mobile is the most powerful communications and technology tool on the continent.
It is no surprise that many successful tech startups are based in Nigeria, Based on current projections, Nigeria’s population is forecast to grow to over 440m by 2050 and see a rapidly increasing middle-class population, with commerce spending in the country on track to total $8bn by 2025-
One thing is for sure – this is only the beginning of Africa’s tech boom.
Source: African Business, May 2015
The just concluded 60th anniversary of the Asian-African Conference featured more than 100 countries that were retracing the historic path of an event that changed the world.
Today, countries like South Africa, Nigeria and Rwanda lead Africa’s rise in the global economy and international stature.
Africa has all the ingredients to be a dominant economic engine for decades to come, according to demographers, economists and industrial and agricultural experts.
With more than 1.1 billion citizens, Africa has huge potential. About one-third of Africa’s 54 nations have a yearly gain in gross domestic product (GDP) of more than 6 percent, making the continent the second highest in economic growth after Asia, which is growing at 4.7 percent per year.
One main factor is because Africa is at last getting its share of peace and good governance since Benin set the mainland trend in 1991.
Population trends could also be improving these developments. More better-educated young people are entering the job market and birth rates are beginning to decline. As the proportion of working-age people to dependents rises, growth should get a boost.
Asia enjoyed the “demographic dividend”, which began three decades ago and is now tailing off. In Africa it is just starting. Continue reading Africa: The world’s new powerhouse
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