Africa’s rise is real, but the continent is an inherently challenging place to do business
Over the past 3 years, EY’s Africa attractiveness reports have provided some quantitative substance to the growing perception that African markets offer an exciting growth and investment opportunity.
While there are people who still seek to debate the point, there is irrefutable evidence of the continent’s progress over the past decade.
In the period since 2002, the size of the overall African economy has more than trebled. Over this period, the size of the Sub- Saharan African (SSA) economy has grown well over 3 ½ times. This economic performance is all the more remarkable because of the deeply troubled global economy that marked half of that decade.
Although trading partners in Europe and North America affected some African economies, most have remained resilient. A diverse group of African nations is among the fastest growing in the world, with growth of 7%+ over a sustained period. These include:
Many of the companies that pursued long-term Africa growth strategies are generating excellent returns from their investments. ROI from investments in Africa have consistently been among the highest in the world since the 1990s.
For companies seeking to grow and investors seeking higher returns, the African growth story should therefore stand out. While most developed economies continue to struggle, Africa clearly offers an exciting opportunity for investment and growth, and an alternative to the ultracompetitive Asian and other rapid growth markets.
It is little surprise therefore that investor interest in Africa has been on the increase.