Prospects for Africa
Africa’s rise in prominence is part of an overall global trend that has seen a shift in economic opportunity from the developed to the developing world. In fact, 6 out of the 10 fastest growing economies in the world are in Africa. In particular, Sub-Saharan Africa (SSA) is expected to remain one of the fastest growing regions, with 2014 GDP growth at 4.5%. This outstrips the levels delivered for high-income countries and most of the developing world, excluding China.
Added to this, many African countries feature highly amongst the largest ranked populations and population growth markets in the world. Currently there are an estimated 350 million middle class consumers on the sub-continent. Africa’s increasing consumer spending potential places the continent firmly in the spotlight as the prominent environment for growth of global, regional and local companies.
Despite burdensome business regulations, Africa is also actively reforming. The ease of doing business is improving, evidenced by the fact that it is currently the region with the highest number of business reforms (World Bank 2015 Ease of Doing Business report). Combined with stabilizing political climates and increasing investment in infrastructure, Africa presents immense prospects.
Success in Africa will depend on many factors including agility and localization of strategy. Realizing the opportunities will also take time, as companies navigate complex political and regulatory environments and develop extended operational parameters.
Nielsen’s African Prospects Indicator (APi) provides existing and potential investors in Africa with comprehensive insights across an extensive range of indicators, culminating in an unambiguous ranking of Sub-Saharan African countries.
Within this context, the strength of the new APi is its unique ability to integrate business, consumer and retail prospects together with more speculative and commonly used macro-economic factors. This brings companies closer to consumer market realities, which means investment can be optimally directed to achieve maximum impact.
The African Prospects Indicator (APi)
The APi is the outcome of intensive collection and analysis of detailed macro-economic, business, retail and consumer information sets. These have been combined and weighted into a consistent single source, trended and comparative set of metrics; to understand not only a country’s relative potential but also the source of that potential.
Table of Contents
- Part 1: Macro Environment Prospects
- Part 2: Business Prospects
- Part 3: Consumer Prospects
- Part 4: Retail Prospects
- Part 5: Spotlight on Cote D’Ivoire
Download the full report HERE
This post first appeared HERE