Well according to the Price Waterhouse Coopers, in 2040, Africa’s economy will have the biggest labour force on earth.
In the latest Global economy watch report, Price Waterhouse Coopers (PWC) has noted that Africa will have the fastest growing economy, more than any other region in the world.
Dr Roelof Botha, an economic advisor to PWC suggests that a number of economic phenomena in Africa have already begun appealing to the global investment community. In fact, the trend is already occurring with large corporations have proven an interest in investing in Africa, having penetrated the largest cities in the continent such as Kinshasa, Johannesburg, Nairobi and Lagos.
Africa has proven investment opportunities through new discoveries of mining and energy resources (particularly gold and gas), the ability for countries to raise financing and infrastructure projects on the international capital market – such as Kenya and Rwanda and sustained growth in per capital incomes, has led to demand shifts that are currently benefiting household consumption expenditure on durables, semi-durables and services.
However, we must also consider the barriers of development various factors which have been, and are currently inhibiting other countries in Africa hinder economic growth, and by extension defuse their ability to join the foreign investment bandwagon.
The common plagues of low quality infrastructure such as transport and communication lines, inadequate school systems and the growing pains that arise from political, legal and regulatory institutions take a strong hamper on the growth of the economy. The greatest of them all is within youth unemployment.
On the other hand, business minds can still seek a point of entry within these challenges, in order to share a piece of the pie within Africa’s investment. If the foreign world lacks interest in investing within specified regions, perhaps it is time to look into Africans investing in Africa on a micro level.
African local business growth will render attractiveness to our countries to secure lucrative investment while increasing employment and growth of the economy. However, according to Subramoney, the major challenge is within policy makers; mainly the ability to convert Africa’s demographic dividend into an economic reality because of a lack of overcoming the hurdles faced within current economic systems, such as infrastructural development.
“History suggests this will not be a quick or easy process. Infrastructure development is a key driver for progress across Africa and a critical enabler for sustainable and socially inclusive growth. However, investors should form their own plans to mitigate these problems by supporting infrastructure skills and development programmes,” Subramoney concludes. The factors that push investors away from investing in Africa must become opportunities for businesses to operate within the country, however policy makers that govern the country must be able to avail opportunities legally.