Why Invest In Africa – Change Capital

Across the continent, economies are growing attracting the attention of foreign investors.
Currently, six of the world’s 10 fastest growing economies are in Africa.
The ease of doing business in Africa is improving to the extent that a good number of countries (including South Africa, Ghana, Mauritius and Tunisia) now outperform China, India, Brazil and Russia.
Despite these promising trends, significant development challenges persist across the African continent
Development and expansion of private business activities and partnerships is a key tool to driving sustainable development in Africa.

Drivers of Investments in Africa

40% of the global population growth will be in Africa by 2050
More than 50% of Africa’s population is under 20 years old, making it the world’s youngest continent – in comparison only 28 % of the population of China is under 20 years old
500 million Africans are between the age of 18 and 24.
By 2040, African population forecast is 1.1 billion — more than in China or India

Consumer expenditure is set to rise from USD 600 billion in 2010 to nearly USD 1 trillion in 2020
Urban African consumers spend the largest share of their budgets (45%) on food and groceries –more than the average consumer in the BRIC countries
More than half of all African households are projected to have discretionary income by 2020 – corresponding to almost 130.000 households
Consumer Industries (retail/wholesale, banking, telecommunication and tourism) in Africa are expected to grow by USD 400 billion by 2020, with apparel, consumer goods and food accounting for $185 billion

GDP growth for the continent is forecast at 5.4% in 2013 and 5.7% in 2014
6 of 10 of the world’s fastest growing economies are currently in Africa
FDI inflows to Africa have increased by 13.6% and FDI outflows by 55.6% since 2010
Average annual return on capital of African companies was 65-70% or higher than that of comparable companies in China, India, Indonesia, and Vietnam