Quite simply: We think that Africa will be the next China. With a fast growing youth population and government-funded education and job creation programs, the African middle-class is likely to prosper and thrive in the next two decades. Urbanization of well-educated, young and brand-aware consumers will drive the economy and the demand for more sophisticated products. Significant investment in infrastructure projects from governments is providing an additional boost to the economy.
Africa is home to 1.2 billion people and has the largest youth population with a median age of less than 20 (compared with the world median age of nearly 30). This energetic, vibrant consumer base is likely to have a significant impact on the global economic landscape in years to come.
The strong national and continental pride is likely to favour local products: the demand for African-produced products will spark home-grown industries and companies. Equity markets offer an attractive means of raising capital for start-ups, within an increasingly regulated (and therefore prudent) environment. See more from PwC, Deloitte and McKinsey Global Institute, summarised in Articles.