For decades the only news reported about Africa was bleak, creating a singular and distorted image of the continent. Terrorism, famine, political corruption, and the proliferation of AIDS and other diseases dominated US media, driving the perceptions of many Americans. Today, however, brighter and more varied narratives are changing those perceptions.
Africa is the second largest continent in the world, with a total landmass greater than the United States, Europe, India, and China combined. There are 54 sovereign countries, each with its own unique identity and varying economic, social, and political structures. Over one billion people now live on the continent of Africa, with Nigeria topping the list as the most populous country with more than 175 million people. English, Arabic, French, or Portuguese are official or co-official languages in every country, with numerous indigenous languages such as Swahili and Hausa still widely spoken.
Of the non-native languages, English has the largest number of speakers—approximately 700
million. While Christianity and Islam are the dominant religions across the region,
traditional African religions still play a significant role, with Judaism, Hinduism, and
Buddhism maintaining a minor presence. The climatic and ecological regions shaping
Africa mirror the diversity of the individual countries and their people. Though the
continent is home to the largest desert on earth, the Sahara Desert, which stretches
across 10 countries in North Africa, it also claims 500 million acres of tropical forest
in the Congo Basin and 60 percent of the world’s uncultivated arable land.
While challenges still exist, Africa has become a source of optimism, progress, and economic opportunity. The economies of many African countries are growing at unprecedented rates, following the trajectory of other fast-paced emerging markets such as China and India.
A flourishing middle class, diversification of industry, and adoption of leapfrogging technologies are other key factors propelling Africa onto the world stage as the next great opportunity for business. Companies who want to be a part of and benefit from this massive transformation must act now.
We spoke to experts on doing business in Africa from both the private and public sectors.
in an effort to present a comparison of Africa to other global regions and provide
select examples from individual countries, regional groupings, and industry segments to
highlight the opportunity that exists for middle-market companies among the 54 diverse
countries on the African continent—each with its own distinctive characteristics and
prospects.
Africa has rapidly gained attention as the
next investment hotspot and is being called “the final frontier.” A decade ago, the
worldwide boom in investing in emerging markets initially benefited Africa along
with
other regions, but today many African countries stand out on their own as highly
attractive investment opportunities.
The African continent is home to seven ofthe top 10 fastest-growing economies in the
world, and foreign direct investment is rapidly increasing. European and Chinese
companies of all sizes recognized the African opportunity early on and have a head
start. Today, American companies are increasingly discussing Africa as a business
destination, yet many have not taken the leap. According to Josh Becker, cofounder and
CEO of Impele Consulting Group, “We are seeing tremendous growth in interest in Africa,
but not the same growth in action. Companies take their notebooks but not their
checkbooks.”
As growth slows in more developed markets, geographic diversification is a logical next step for businesses of all sizes. Many African markets offer attractive opportunities for mid-sized companies, and as an early mover, a company stands to secure the most suitable options as well as the best talent, partnerships, and incentives.
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