The 2020 Mid-Year Economic Update_long

Africa: The Next Economic Frontier?

Report: Africa poised to become one of the fastest growing economies by 2040.
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As companies look for new growth opportunities in the international market, they often turn to Latin or South America. But according to a new report from PricewaterhouseCoopers, one of the biggest geographies for opportunity may be Africa. By 2040, Sub-Saharan Africa is expected to have the biggest labor force in the world and be experiencing faster economic growth than any other region, the report says.

But is this an opportunity for distributors? Many major corporations already have a presence on the continent, primarily in Lagos, Nigeria; Kinshasa, Congo; or Johannesburg, South Africa. The report identifies growing opportunities in several other countries, as well. As with any growing economy, the exact needs are still being defined, but manufacturing will likely play a significant role. And that means that many manufacturing partners may already be eying Africa as a new opportunity.

That opportunity is still in the early stages of development. In fact, the PwC report identifies three key issues that will have to be addressed if these possibilities are to fully evolve:

  • Low quality of “hard” infrastructure, such as roads and railways
  • Inadequate “soft” infrastructure, such as schools and universities
  • Ongoing political, legal and regulatory challenges that come with developing a more complex economy

But, based on the facts presented, it’s not too early to start considering how to tackle this new market as it emerges on the global economic scene.

Read more about how mid-market companies can take advantage of global opportunities in Global Markets Are Not Just for Large Companies Anymore.

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