The African Market Takes The Lion'S Share

The Indian Tiger and the Chinese Dragon have had their days, and it’s now the African Lion’s turn

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 the international media, driving the perceptions of many people about Africa. 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 across10 countries in North Africa, it also claims 500 million acres of tropical forest in the Congo Basin and 60 per cent 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 great opportunity for business. Companies who want to be a part of and benefit from this massive transformation must act now.

African countries offer opportunities to access a group of markets in burgeoning economies with expanding middle classes. The populations in these countries have diverse and increasing needs. Most countries are developing industries beyond the extractive sectors, ranging from basic consumer goods, manufacturing, and transportation to financial services, telecommunications, and biotechnology.
As African markets continue to diversify and increased capital comes in from multiple channels, a broader range of industries will present new options for investment and expansion.

Rapid growth is occurring in many African countries across a range of sectors, generating opportunities for mid-sized companies as well. The time to access this large and growing market is now, while there is significant latent demand, and limited competition.