What do you envision when you think of the continent of Africa? If you think of lush landscapes, dry deserts, abundant wildlife, and mud huts, you’re not wrong, but you’re also not totally right. There’s a much bigger picture when it comes to this “cradle of humanity” that still holds 16% of the world’s population.
It may surprise you to know that the African economy is actually the only one expected to grow by double digits in the next 5 years. In fact, in 2019, the top 5 fastest growing economies in the world were in Africa and they were growing at 2x the global average. Africa is growing faster than any other region. Nearly half of its citizens are living in large cities and 65% of the population will be considered middle class by 2025. Africa is also outgrowing China and India in their working-age population. Currently, Africa’s global GDP is only 3%, but by 2025, their GDP will reach $4.5 trillion.
Not only is Africa growing by leaps and bounds, but it has also become a hub of opportunity and entrepreneurialism. With 22% of the population engaging in their own startup businesses, Africa is home to more entrepreneurs than anywhere else in the world. Part of this is because African’s tend to take pride in their homeland and wish to invest in it. Nearly 70% of young Africans pursuing MBA’s at the top 10 universities in the US and Europe plan to return home upon graduating. The challenges and needs of the African population lends itself readily to the success of small businesses and the entrepreneurs who own them.
2018 saw startup funding in Africa grow by 4x and funding deals doubled. A new record was set with startups raising $725.6 million in funding for 458 deals. The top 30 startups receive rounds of over $5 million.
Clearly, investors and business owners should be taking note and potentially bringing their businesses to this diverse and thriving continent. Africa presents the perfect climate for gaining exposure to products and services. With a population already more accustomed to successful startups, it can be easier to find partners willing to help implement, operate and expand your business with expertise and necessary capital.
Africa is the new “land of opportunity”. Maybe it’s time to see where your business fits in and invest in Africa.