Overview on opportunities and challenges ahead for businesses operating in Africa
| Unique human capital potential | |
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Over 1 billion population Growth rate over 5% for 15 years Large emerging consumer market |
1 out of 2 continue to live in extreme poverty |
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Young and dynamic workforce With 450 mln workers joining by 2035 |
Low levels of health and education Imperative of job creation and skills mismatch |
| Business environment | |
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Increasing regulatory reforms to promote competitiveness Regional integration will help build economies of scale and increase competition |
Huge divergences in macro-economic performances Only 11.3 % of trade in Africa is intra-regional |
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Financial markets top performers: South Africa, Kenya and Mauritius |
Financial markets under-performers include Algeria and Libya |
| Towards sustainable growth | |
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Economy led by agriculture and expanding service sector Services can drive greater gender opportunities |
Labour productivity remains low 70% of the population in South Africa and 55% in Kenya own bank accounts, compared to just 3.0% in Niger |
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Communication, finance, insurance and other commercial services are positively correlated with development |
Firms will need to look at factors such as financial inclusion, formal job creation and market accessibility |
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Opportunities from innovative business models such as mobile technology services (ie M-PESA money transfer system) Over 4/5 of the populations holds a mobile subscription |
Need to develop adequate infrastructures |
Sources:
- Africa Competitiveness Report 2015, World Economic Forum, Switzerland, 2015
- 2015 Brookings Financial and Digital Inclusion Project Report, Brookings Institution, US, 2015
- Women and Trade in Africa – Realising the potential, The World Bank, 2013
- Africa: in pursuit of growth, MENA Insurance Review, 201