Africa's Economy
Africa is fast rising and only those who invest now will benefit later.
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Obi Gospel
Founder of IABC Africa
26th June, 2019
3 mins read
Opinions expressed by IABC contributors are their own.

The best time to invest in Africa is now; it is however disheartening that foreign investors have not move into the continent, as quickly as expected because foreign investment decisions are often methodically over structured. According to the chief economist of the UN development programme (UNDP) regional bureau for Africa, Dr. Ayodele Odusola, one of the major factors cited is too much risk. But risk and profits are inseparable twins: high- risk ventures are frequently associated with higher profits. 

How are some of the reasons why you should invest in Africa now?



Africa’s economic growth prospects are among the world brightest. Six of the world’s 12 fastest growing economics are in Africa (Ethiopia, Democratic Republic of Congo, and Coto d’ivoire, Mozambique, Tanzania and Rwanda). Africa as an emerging economy is much more vulnerable to rapid growth and expansion than any continent in the world. Africa’s economy is rising and is expected to double by 2050.



With over a billion people, Africa indeed has a very large market. Products sell faster than it does in other continents because the need and demand for such products are very high. With the growth of Africa’ middle class; there are developments of new expectations. There are increased consumption among the educated, urban professionals who are young, brand-aware and sophisticated in terms of their consumption. Africa’s local industries are yet to meet up with Africa’s rising consumption demands and this calls for increased investment. African consumers and businesses spend a total of $4 trillion in 2017. This figure is expected to rise to $5.6 trillion by 2025 and $6.7 trillion by 2030 according to world economic forum. 



Africa is the most profitable region in the world. A report by the U.N conference on Trade and Development states that between 2006 and 2011, Africa has the highest rate of return on inflows of Foreign Direct Investment: 11.4%. This is compared to 9.1% in Asia, 8.9% in Latin America and the Caribbean. The global figure is 7.1%, Return Rates are bolstered by significant growth in the region. According to the World Bank, the rate of return on foreign investment is higher in Africa than any other developing region.



Compared to other regions of the world, Africa has a much younger median age. According to Deloitte, 200 million Africans, about 20% of the population, are between the ages of 15 and 24, a figure expected to rise to 321 million by 2030. While the rest of the world is aging, Africa is young. Africa’s young demographics points to economics strength, in that working-age population is associated with favorable rates of GDP growth. This may lead to labour being  cheaper in Africa than anywhere else in the nearest future.   



Increased internet access has spurred the diversification of many African economics beyond commodities. This has boosted E-commerce across the region. It is reported that by 2025, online shopping could account for 10% of retail sales on the continent, amounting to some $75

Billion. The digital transformation of Africa provides huge opportunity for investors to maximize. Africa leads the world in mobile adoption which continues to offer the biggest cross-sectored economic opportunities.


Indeed Africa is rising and so is its economy. If there should be a time to invest in Africa: the best time is now.

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