There are at least five reasons you should invest in Africa now (not necessarily in any order):
- Steady High Economic Growth Rate – According to the World Bank, 9 out of 15 economies in the world with the highest growth rates are in Africa. GDP growth in sub-Saharan Africa is expected to be close to 5% in 2012-15, and with increasing domestic demand tied to good investment incentive policies, Foreign Direct Investment (FDI) is expected to rise substantially, boosting GDP growth even more.
- Large Mineral Reserves – Large amounts of minerals are being discovered in countries like Kenya, Tanzania and Mozambique, and the industrialized countries are in need of steady supplies of these minerals. That’s why negotiations are underway in many of these countries and more FDI is soon to follow.
- Uncultivated and Fertile Land- Africa has tremendous amounts of land that needs to be cultivated and can feed not only the world, but those regionally and locally. This opens up tremendous opportunities in the agribusiness and food processing industries.
- Growing Demand for Consumer Goods – There are already around one billion consumers in Africa, and this number promises to only grow with the number of young people (who seem to be naturally great consumers) growing phenomenally there.
- The Population Continues to Grow – Continuing from what was stated above, the population of Africa continues to grow, and a significant amount are of employable age. Labor-intensive industries such as mining, agribusiness and manufacturing, as well as services businesses, will have to be started and expanded to be expedient in fulfilling these employment “needs” and in increasing productivity.
Certainly, there are challenges, but there are challenges in any region in the world. Many are being overcome, and some have yet to be. Those of us who are investing in Africa realize however, that long-term, the opportunities are tremendous, and with reward comes risk.
We here at Africa Investment Report will continue to “do our homework” and look for “practical” opportunities for you to invest in Africa. Be sure to sign up in the box to the right for updates, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”.