Africa is a land of opportunity for companies and entrepreneurs looking to invest in new markets. The continent offers rich natural resources and a rising middle class. A recent AfrikaNews article highlighted Deloitte Consumer Review data, which predicted the African economy would see annual growth of 7.7% between 2014 and 2019.
The AfrikaNews article further detailed threats and opportunities for doing business in Africa. Many countries like Gambia, Zimbabwe and Tunisia are in a positive transition and represent opportunities. In contrast, several countries like Nigeria, Chad and Somalia remain conflict zones due to the threats of insurgent groups like Boko Haram and al-Shabab. Needless to say, terrorist attacks threaten personal safety, economic growth and infrastructure.
There are many factors responsible for strengthening the economic and political environment in Africa. These factors include things like sustainable solutions to poverty, new policies for improving the business climate, corruption prevention and improved infrastructure, which help attract foreign investments.
Africa Internet Group (AIG) secured capital from major corporations like AXA and Goldman Sachs in the last couple of years. AIG operates Jumia, an online shopping destination. The growing number of smartphone users in Africa has changed consumer shopping habits and opened the market for ecommerce. Online shopping in Africa is expected to reach $75 billion by 2025. Nigeria, Kenya and South Africa are currently leading Africa in digital growth.
To read more information, please see: Doing business in Africa: threats and opportunities.