Africa, A New Beginning?

“The benefits of investing in Africa are beginning to outweigh the risks. At a time when growth is stalling in America, Europe and Japan, and some of the major emerging markets are slowing down, Africa presents compelling, yet selective, sector investment opportunities.” 

In the past, Africa has been seen as a continent with no financial opportunities and highly stagnated economies. However, recent studies have contradicted those beliefs. 

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The economic analysis made available to Merar members and visitors by a Kenyan Equity Research Company confirms the fact that the continent, as a whole, is incurring rapid changes. It shows huge GDP growths for some African countries, which are backed by reliable facts and figures, attaining investors’ attention.

The initial boost came from the rich lands, providing Africa with many different commodities to sell. These have helped the African economies to move forward and expand into the financial sectors and become a market worth investing in to.

With the IMF, The World Bank and the African Development Bank relieving the countries from a considerable amount of debt, African nations have been able to grow at a larger rate than most Asian countries, especially Angola who even outpaced China with a stunning 11.1% GDP growth, over the past decade.

The great investment opportunity that Africa has presented, has been of great advantage from a technological and communication point of view. The current improvement of broadband services provides a fast internet connection, even faster than some developed countries. Unfortunately, not many people can afford computers in Africa, however with the emergence of the middle class, in the near future, computers and the internet will become more affordable.

Africa has a population of just over a billion people, which up to the past decade had no middle class, therefore no interest from the big firms. However, with the emergence of the middle class, major international retail companies have seen the opportunity in the growing market, in times of global stagnation. This suggests that Africa may be one of the major investment targets for the years to come.

If interested in exploring investment opportunities across Africa, have a look at our projects database or contact us at customer-service@merar.com to find out how we and our partners for the region can help you. 

Image courtesy: Africa Renewal, 2010, Flickr CC.