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    01 África - Un Continente en Movimiento

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    godofredo gamero
    Africa is a rapidly developing continent with a young and growing population. It has experienced strong economic growth in recent decades and is projected to have the world's largest workforce by 2040. Several factors are driving Africa's success, including improving business environments, growing urbanization and middle class, increased trade with emerging economies like China and India, rising private sector involvement, and abundant natural resources. However, challenges remain such as poverty, corruption, and infrastructure deficiencies. Investors are advised to thoroughly research specific countries and markets before entering Africa due to the diversity and complexities across the continent.

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    01 África - Un Continente en Movimiento

    Uploaded by

    godofredo gamero
    45 views17 pages
    Africa is a rapidly developing continent with a young and growing population. It has experienced strong economic growth in recent decades and is projected to have the world's largest workforce by 2040. Several factors are driving Africa's success, including improving business environments, growing urbanization and middle class, increased trade with emerging economies like China and India, rising private sector involvement, and abundant natural resources. However, challenges remain such as poverty, corruption, and infrastructure deficiencies. Investors are advised to thoroughly research specific countries and markets before entering Africa due to the diversity and complexities across the continent.

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    un continente en movimiento

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    01 África – Un Continente en Movimiento

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    Africa is a rapidly developing continent with a young and growing population. It has experienced strong economic growth in recent decades and is projected to have the world's largest workforce by 2040. Several factors are driving Africa's success, including improving business environments, growing urbanization and middle class, increased trade with emerging economies like China and India, rising private sector involvement, and abundant natural resources. However, challenges remain such as poverty, corruption, and infrastructure deficiencies. Investors are advised to thoroughly research specific countries and markets before entering Africa due to the diversity and complexities across the continent.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views17 pages

    01 África - Un Continente en Movimiento

    Uploaded by

    godofredo gamero
    Africa is a rapidly developing continent with a young and growing population. It has experienced strong economic growth in recent decades and is projected to have the world's largest workforce by 2040. Several factors are driving Africa's success, including improving business environments, growing urbanization and middle class, increased trade with emerging economies like China and India, rising private sector involvement, and abundant natural resources. However, challenges remain such as poverty, corruption, and infrastructure deficiencies. Investors are advised to thoroughly research specific countries and markets before entering Africa due to the diversity and complexities across the continent.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    Africa: A Continent on the Move

    Alessandro Sacerdote
    Humboldt Trading (Pty) Ltd
    Fast Facts
    54 countries
    5 regions : North, West, East, Central, Southern
    Each region has own character, people, opportunities and
    challenges

    Population:
    Median age is 20 years old it is the worlds youngest continent.

    So by 2040, it will have the worlds highest potential labour force


    (exceeding projections for China/India)

    Urbanization increasing throughout the continent, at 3.5% - highest of


    all developing world
    Estimated people living in urban environment = 36% (2012) -> 50%
    (2030)
    Rapid urbanization is resulting in efficiency, small-scale
    industrialization and infrastructure to major cities all of which is
    attractive to investors, especially as markets stagnate or shrink in
    some developed markets already saturated with products.
    Economy
    There are still severe disparities in income, but a genuine middle-class is
    emerging.
    Consumer spending set to grow from USD 680 bn (2008) -> USD 2200
    bn (2030) [320% increase]
    Vast potential market, with great opportunities.

    The Economist predicts that between 2011 and 2015, 7 of the worlds
    10 fastest-growing economies will be African.
    With 20% of the worlds land mass more than China, India, the US,
    Japan and most of Western Europe put together and 15% of its
    population (currently), Africa is being touted as the worlds last major
    economically untapped region.

    The growth rate of economies in the Sub-Saharan region is also


    expected to be double that of the global economic growth rate during
    the period to 2020.
    Sub-Saharan Africas gross domestic product expanded at an average
    annual rate of more than 5 per cent throughout the economic crisis that
    has swept across the world since 2008.
    GDP comparison : Top 10 Africa vs Top 10 Central+South America

    Top 10 Africa GDP Top 10 Central+South GDP


    (USD Bn) America

    South Africa 384 Brazil 2,253

    Nigeria 263 Mexico 1,178

    Egypt 257 Argentina 471

    Algeria 208 Venezuela, RB 381

    Angola 114 Colombia 370

    Morocco 96 Chile 268

    Sudan 59 Peru 197

    Tunisia 46 Ecuador 84

    Ethiopia 43 Guatemala 51

    Ghana 41 Uruguay 49
    TOTALS 1,511 5,301
    Use the 80:20 Principle to choose your strategic countries

    One factor making life easier for international firms is that 10 countries
    - Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa,
    Sudan and Tunisia - account for an estimated 80% of Africa's PRIVATE
    consumption.

    But, how many of these are easy to do business in?


    African Development Bank
    Doing Business in Africa 2012 Statistics

    ` Ease of Dealing with Getting Getting Protecting Trading Registering Closing a


    Doing Licenses Credit Electricity Investors Across Property Business
    Business Borders
    Country Rank Rank Rank Rank Rank Rank Rank Rank
    Mauritius 1 8 10 1 2 1 4 5
    South Africa 2 1 1 35 1 14 11 11
    Tunisia 3 15 24 3 9 2 9 2
    Rwanda 4 17 6 2 3 37 5 42
    Botswana 5 29 9 11 5 29 3 1
    Ghana 6 44 4 5 7 11 2 21
    Seychelles 7 6 45 32 13 3 7 6
    Namibia 8 5 7 8 17 25 44 3
    Zambia 9 40 3 36 18 35 16 16
    Morocco 10 10 23 12 21 5 42 12

    indicates a top 10 country in Ease of Doing Business


    with another factor not within top 10
    Bed of Roses?

    Not quite. Challenges are numerous:

    Rampant poverty and unemployment


    For example, even though per capita GDP in the richest economy, South Africa, is
    about $7 500 a year, nearly 40% of the population lives on less
    than $3 a day.

    Corruption and bureaucratic barriers

    Transport challenges (due to lagging investment in infrastructure)

    Some unstable governments and others with dubious


    developmental agendas
    What are the factors driving African success?

    1. Improving macroeconomic indicators and business Environment

    Government reforms and initiatives have reduced inflation,


    budget deficits and debt levels in Africa.
    Africas regulatory, legal and business environment has also
    improved.
    According to the World Banks 2013 Doing Business Report, among
    the 50 economies globally that have most improved their regulatory
    environment for business since 2005, the largest share - 33% - are in
    Sub-Saharan Africa.

    2. Demographic dividend, rising middle class and urbanization (as


    shown previously)
    What are the factors driving African success?

    3. Trade : Growing links with emerging economies

    There has been a substantial increase in the economic presence of other


    emerging markets in Africa. The BRICs (Brazil, Russia, India, China) share
    in African trade has increased from just 1% a generation ago to 20%
    today.
    By 2030, this share is expected to be 50%.
    China and India in particular are looking to Africa to help meet their
    energy security needs, as a market for manufactured goods and
    potentially for long-term food security too.
    Africas raw material resources have caught the attention of the Chinese,
    both as a potential lender and trade partner.
    Similarly, Indian investment in Africa has grown significantly, particularly
    in telecoms, agriculture, infrastructure and mining.
    Importantly, Indian interest in Africa is led by emerging private sector
    companies.
    Brazil has also intensified its efforts to invest in Africa and compete with
    China and India.
    What are the factors driving African success?
    4. Private sector participation
    African leaders are eager to move away from dependence on aid and
    the accompanying conditions imposed by donors.
    This development has created a rising technocratic class in SSA that
    is well aware of the challenges to raising income and competing
    globally, including infrastructure investments, regulations and
    maintenance.
    The growing influence of the private sector in Africa is evident in the
    increasing number of leaders and cabinet members from the
    corporate world.
    Privatization programs in many African countries during the last two
    decades have resulted in the sharp fall in government equity share in
    privatized companies, from 89.1% to 10.3%.

    There is a further opportunity for wider private sector participation


    in areas that have traditionally been dominated by the public sector.
    In the energy sector, for example, private providers are participating
    in rural electrification projects to facilitate solar home-lighting
    systems.
    What are the factors driving African success?

    5. Natural resources
    Africa has great reserves of natural resources:
    OIL
    Nigeria and Angola are among the top 20 oil producers in the
    world.
    African countries make up 11 of the top 50 countries in terms of
    proven oil reserves.
    GOLD
    South Africa, Ghana and Tanzania are among the top 20 gold
    producers.
    COPPER
    Zambia and the Democratic Republic of Congo the top 20 copper
    producers.

    Other vast resources include diamonds and platinum.


    Checklist for trading in Africa

    1. Know the territory - gain a deep understanding of the politics, economics


    and business environment of your chosen market
    2. Use the network - attend relevant conferences and join forums
    3. Understand your customers - African consumers like foreign brands. Mobile
    technology is making it easier to reach an African audience and easier for
    these consumers to compare your products with rivals
    4. Explore the logistics - consider the entire supply chain in your sector and
    prepare for any likely red tape or bottlenecks
    5. Manage currency risk up front major banks can help you navigate the
    exchange controls that exist in different countries, and help set up the best
    approach for your currency needs to mitigate foreign exchange transaction
    risk
    6. Know the rules - ensure your business policies meet regulations in the
    territories you are targeting and be prepared for frequent licensing
    changes
    7. Be responsible socially and environmentally. Consider what you can bring
    in terms of local employment, new technology or skills development to
    support your chosen markets this can be a key factor in gaining
    government support.
    8. Move quickly the competition is already keen: Chinese, Indian and US
    businesses have all recognized the potential of African markets.
    QUESTIONS : will handle after next presentation.

    Siyabonga, Thank you

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