Although the enormous challenges facing Africa it is in rapid transition and represents a real opportunity for patient and responsible investors. From an empty continent that faced numerous conflicts, sanitary crises and strong poverty, Africa is moving towards an accelerated growth that will create a middle class of more than 250 million people. Africa represents vast opportunities for private investors but also important challenges in terms of political and social stability and respect of the environment. Even though risks in operating on the continent remain high, returns may be even higher. Africa is expected to follow in the footsteps of Asia, which two decades ago was facing the same challenges but managed to grow and develop thanks to the newly found macroeconomic stability, dynamic demography and diverse growth drivers present on the continent.
Indeed more and more countries in Africa show greater political stability, policy continuity and improved governance that are prerequisites for attracting the long-term investments to generate sustainable economic development. These investments will move from the historical commodities and natural resources sectors to the sectors that will benefit from the booming emerging middle class market and reinforce the internal growth of the continent.
The strength of these macroeconomic and demographic changes in Africa will definitely make the continent a region of sustainable high growth over the next decades and the world’s next growth frontiers (more information on this subject (http://www.amethisfinance.com/wp-content/uploads/2012/04/Africa-the-worlds-next-growth-frontier.pdf).
Here are 9 mega-trends that are likely to be shaping instruments for the future of Africa (https://agenda.weforum.org/2015/05/9-mega-trends-shaping-the-future-of-africa/).