Brian Wallace, Founder & President, NowSourcing
Whether you are the “average Joe”, interested in finance, or more heavily involved in finance and investing, the state of the African economy may not be something that’s likely to come to mind for you on any given day, but it’s possible that it should be. Africa isn’t just the images we’ve seen projected on commercials and billboards for African missions and charities. It’s far more than that, and it may surprise you to know that it’s actually the fastest growing economy in the world.
In fact, in 2019, the top five fastest growing economies in the world were in Africa and the continental economy is growing at a rate of 2x the global average. Not only that, but it won’t be long before 65% of the African population will be in the middle class economic bracket. Currently, Africa holds 16% of the population and only 3% of the global GDP, but with a working-age population that will soon overtake China and India, the African GDP is expected to reach nearly $4.5 trillion by 2025. The African economy is the only one set to grow by double digits within the next five years.
It’s time for Western investors and entrepreneurs to take note of the opportunities in Africa. In general, Africans are more geared toward entrepreneurialism and partnership. The economy may be growing rapidly, but one of the major causes for this is that the needs of the population are still overwhelming in many areas. The upside is that these needs create numerous opportunities for entrepreneurs to create thriving businesses that will help to meet those needs. In fact, Africa has more entrepreneurs than any other region in the world. In 2018, startup funding in Africa grew by 4x, and funding deals doubled. Twenty-eighteen also brought a record high as startups raised a total of $725.6 million with 458 deals, with the top 30 startups receiving rounds of over $5 million.
What makes this relevant to Westerners is that Africans are not the only ones who can benefit from this fertile ground for business growth. In fact, even big tech companies like Google, Facebook, and Microsoft, are expanding their businesses to this new “land of opportunity.” Bringing your business to Africa means gaining exposure and presenting products and services to a business sector that isn’t already saturated. The African economic environment makes it easier to find partners, operate, implement, and expand your business.
Africa is a rising star in the global economy. It’s time for Western investors to grab on and rise with it. Learn more about investing in Africa in the visual deep dive below:
About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on Linked