Page 4 - EXPORT GUIDE 2 AFRICA

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WHY DO BUSINESS IN AFRICA
“Africa the next growth frontier”. Investors and business owners are now paying more attention to
Africa’s emerging markets and the continent’s future looks bright. Below are some of the reasons
why Africa should be your next Business opportunity.

1. The role of businesses/entrepreneurship 3. Africa’s rising GDP 4. Africa will have the largest workforce

Small businesses now play a pivotal role in Africa is the second-fastest-growing region in
several African countries. In sub-Saharan the world, according to economic experts.
Africa, the support for entrepreneurship is The continent has been reawakening with
on the rise - making it easier for people to new zeal for economic growth and develop-
create jobs for themselves. ment, and the rate of return on investment is
higher than anywhere else in the world.
For example, The National Bureau of Statis-
tics (NBS) reported that there are over 17 From 2000 to 2008, Africa’s real GDP rose by
million SMEs in Nigeria, which is Africa’s new 4.9%, more than twice its pace in the 1980s
largest economy and most populous nation and 1990s. In 2012, six of the continent’s 10
with over 160 million people. Similar stories economies (Angola, Ethiopia, Ghana, Namib-
also abound in other sub-Saharan African ia, Nigeria, and Zambia) reported GDP growth
nations. rates of 5% or higher – it was as high as 8.5%
for Ethiopia.
According to Global Entrepreneurship
Monitor 2012 sub-Saharan African Report,
the region is now experiencing what is
called “entrepreneurial revolution” that has
reinvigorated it with new opportunities,
increased employment and a robust rise in
Gross Domestic Product (GDP), which is
acclaimed as one of the highest in the world. Africa’s labor force is expanding. It is also
endowed with the world’s youngest popula-
tion. This o ers the continent a chance to
2. Doing business in Africa is now easier
reap a demographic dividend by using its
young workforce to boost economic growth.
Africa is now home to more international
private rms. This is due to the increasing According to Global Futures Consulting rm
adoption of seamless business policies, GBSH Consult Group, Africa will be home to
lowered corporate taxes, and strengthened one in ve of the planet’s young people by
regulatory and legal systems in some 2040. This means that in less than 25 years,
countries.
Majority of its population will be youth. By
The World Bank’s “Doing Business 2014: then, the continent will have an average of
Understanding Regulations for Small, about 1.1 billion - more than the size of
Medium & Large-Size Enterprises” released China’s or India labour force.
in October 2013 reported that sub-Saharan
Africa continues to record a large number of JOINT VENTURES If Africa provides its young people with the
reforms aimed at easing the regulatory right education and skills needed, this
burden on local entrepreneurs, with 66 FRANCHISES workforce could become a signi cant source
reforms adopted in the past years (June 2, AGENTS that will propel the continent into economic
2013 – June 1, 2015). prosperity.
The World Bank in its latest semi-annual
Of the 189 nations surveyed globally, 18 report, Africa’s Pulse, forecast an average
African economies made the top 50 most 5.3% growth in 2017 up from its 6.1% projec-
reformed economies. Rwanda, Côte d’Ivoire, tion. Also, the IMF estimates that GDP growth
and Burundi are among the global top 10 in sub-Saharan Africa will hit an average of
improvers in making the biggest improve- 6.1% next year, far exceeding the expected
ment in business regulations. global average rate of 4%. It also says that
This year, Mauritius at 20 position, Rwanda seven of the world’s 10 fastest-growing
32, South Africa 41, Tunisia 51, Botswana 56, economies for the period 2013-2017 will be
Ghana 67, Zambia 83, Morocco 87, Namibia African.
98 and Cape Verde 121 are testament to the
growth in ease of doing business in Africa. The reason of this growth surge is govt action
The report showed that of the 47 economies to end armed con icts, improve macro-eco-
in Africa, 31 implemented at least one nomic conditions, micro-economic reforms GDP Composition
business regulatory reform in 2012/13. to create a better business climate. By Sector