Is Africa gearing up to be the next Asian Tiger?

by Ernest Umunna on 09/06/11

Africa is on the move. Africa's economic rhythm has quickened, infusing the continent with a new commercial vibrancy. Strong prospects await global companies that invest in the continent's consumer, agricultural, natural resource, banking, telecommunication, retailing, and infrastructure sectors. Africa's economic growth is creating substantial new business opportunities that multinational companies can no longer overlook. The emergence of regional economic powers such as the "African Lions" of Southern Africa, the "African Elephants" of East and Central Africa, and the "Niger River Giants" of West Africa are attracting the attention of the Asian, North and South American, and European investors.

The rise of the African urban consumer and Africa's long-term growth are increasingly reflecting interrelated social and demographic changes and creating new domestic engines of growth. Key among these will be urbanization, an expanding labor force, and the rise of the middle-class African consumer. Each African country will follow its own growth path based on opportunities and challenges, and level of economic diversification.

 

In 1980, just 28 percent of Africans lived in cities. Today, 40 percent of the continent's one billion people live in cities. This proportion is roughly comparable to China's and larger than India's. By 2030, that share is projected to rise to 50 percent, and Africa's top 18 cities will have a combined spending power of $1.3 trillion. Africa has six of the world 10 largest growing economics. Africa has new class of businessmen and businesswomen that are young and often western educated, and they are stirring things up.