Opinion: Africans Investing in Africa: New Engine of Africa’s Growth
Never have the stars been more aligned for African businesses as they are now.
Rising disposable incomes, a young and talented population, growing urbanization, and an increasingly robust business climate have all combined to produce an emerging middle-class that is poised to drive consumption, innovation, industrialization and trade. Global investor confidence in Africa is higher than it has ever been.
A survey conducted by the African Private Equity and Venture Capital Association confirms that Africa is set to become one of the most popular destinations for investments, especially as growth in more mature markets like China and Brazil slows down. Indeed, PwC predicts African agriculture booming into a $1trillion industry by 2030 as the fate of the often overlooked sector turns and it begins to attract deep investments particularly in Zambia, Botswana, South Africa and Tanzania.
While local and global investors are similarly lured into Africa by the current set of conditions – peace and stability, sustained economic growth, a ballooning youth population, and a rising consumer class – investors, especially from South Africa, Kenya, Nigeria and Namibia, lead the pack. It would surprise most to learn that the greatest source of investment in African economies is not the United States or China but actually South Africa.