5 Reasons to invest in Africa in 2019
To most people, Africa is one big jungle where you find all sorts of wild animals and good for safari’s which is partly true because in Africa we have all those things and trust me we are good at it. Nevertheless, what most people don’t know is that Africa is the world’s richest continent in terms of unexplored natural resources.
In itself, the continent provides most of the world’s Iron Ore, Graphite, Aluminum, Gold and Diamonds to say the least. Zimbabwe, a country to the South of Africa, has the both the World’s best climate and Agricultural land, it also in addition to South Africa has one of the World’s largest platinum reserves. Niger is the world’s fourth-largest Uranium producer which countries like Namibia and Ethiopia following closely behind.
If you have money and wondering where to put it so that it makes the most returns, your answer is Africa and here are 7 reasons why you should invest in Africa.
1. Africa is still developing as a continent
Africa is currently a $3 Trillion economy with the potential to be 10 times that size. All of Africa’s countries are still developing which means there are so many problems that have to solved in almost every economic sector. The fact that Africa is developing coupled with the availability of Raw Materials makes it a very lucrative investment destination as you will save money in Transportation costs.
2. Trade Barriers are falling
On the 21st of March back in 2018, African leaders signed a deal known as the African Continental Free Trade agreement that aims at creating a single economic market to facilitate free movement of goods between African countries. This single deal is expected to take down every barrier that hampered intra-African trade.
This deal will make it possible for manufacturers to set up their operations in different African countries without having to go through terrible bureaucratic procedures making the whole process much simpler. The deal also means that those who may want to invest in Africa won’t have a hard time compared to the past.
3. Africa’s middle class is growing
Africa’s total population is currently at 1.3 billion with a median age of 19. Yes, the average African is 19 years old. In short, this statistic means two things; Firstly, Africa has the world’s largest youth population and secondly, that Africa has the world’s second largest population next to Asia. The interesting thing about Africa’s youth population is that it will make up a large part of the continents middle class as there will be approximately 300 million Africans between the Ages of 22 and 35 by 2025.
Economically, that is a lucrative market for almost every business and sector imaginable.
4. Africa has a lot of opportunities
I had briefly passed through the opportunities available in Africa but I think this needs to be expanded upon. If you are looking for only a single reason to invest in Africa, then let it be this one. There are a lot of unexplored opportunities in Africa. If you look at the point above on the growing middle class, you will be surprised to note that most of these young African’s are unbanked either because of lack of trust in their indigenous banking system or the high cost of banking fees. This scenario means there is a huge opportunity in Africa’s financial sector.
Another opportunity lies in Agriculture. Most of Africa’s Agricultural Land in underutilized due to the lack of mechanized equipment. The continent has the potential to feed the whole world but this potential has not been realized to this fact. Investing in Africa’s Agric sector can bring about high returns.
There are other opportunities in Internet Provision, Energy, Transportation, Education, Tech, Media and health, sectors that have remained unexplored leaving massive gaps for whoever is bold enough to pour their resources into these sectors.
5. Africa is growing economically
6 of the 10 world’s fastest growing Economies are African countries. The continent itself is also growing expected to average 3.6% in 2019. Overall, the continent’s economy is bullish is this growth is expected to continue through the influx of investment into individual countries and increase in trade. A growing economy simply means your investment will be safe in Africa which alone is a reason to invest in Africa.
There is more to Africa than electoral disputes, wars and our beautiful safaris. Africa is a beautiful continent with a lot of Economic opportunities lying around waiting for a person to take up the call and invest in Africa.