Peter Moyanga and Nic Louw of Moyanga, Louw & Associates who have been actively involved in promoting franchising throughout Africa, gave us this positive overview of the potential of Africa. “No other region in the world is described with such sweeping generalisation as Africa. Bad news in one of the 54 countries rubs off on the entire continent partly because there is a tendency to refer to Africa as one country which leads to a lack of investor confidence in the continent” says Peter Moyanga. Perceptions are changing as a new Africa is emerging - an Africa powered by capitalism, embracing globalisation and increasingly showing support for entrepreneurship and small business. With Africa the second fastest growing region in the world over the past 10 years with an average annual growth of 5.1%, strong trends have emerged that will ensure that this growth continues.
- The rise of a large, younger and more affluent middle class population as a consumer group.
- A strong move towards urbanisation with 40% of Africans living in urban areas increasing the demand for products and services.
- Africa has been able to leapfrog technology and has the fastest growing telecommunications sector globally, thanks to mobile technology. With more than 700 million mobile subscriptions in Africa, this strengthens the existing social networks and overlaps with economic networks and growth.
- Africa's considerable precious and base metals wealth, its untapped oil reserves and recent oil discoveries in Ghana, Uganda, Namibia, Kenya, Tanzania and Mozambique will catapult economic growth.
- Africa has about 60% of the world's unused cropland and with food said to become the ‘new oil' of the 21st Century, this largely dormant agricultural potential is drawing attention, not least by South African farmers who have become active in many African countries.