Africa is the second-largest continent and is home to people from a diverse range of ethnicities, languages and cultures. The African continent is known for being exceptionally rich in natural resources and for its vast gold, diamond, platinum and copper reserves. It also has a massive, untapped supply of natural gas and oil and a large educated labor force. For investors around the globe, investing in Africa has become the ‘final frontier’ as other emerging markets like China and India are maturing.
Countries in Africa
Unlike Europe or the Americas, investments in Africa greatly vary from country to country. The wealthiest countries on the African continent are Egypt, Morocco, Nigeria and South Africa. Egypt offers investment opportunities in areas including renewable energy, agriculture and major infrastructure projects. Manufacturing and financial services are key players in Morocco while the technology sector in Nigeria is rapidly catching up with the rest of the world, as investments in agriculture and manufacturing continue to thrive. Improved stability and economic reforms in recent years have resulted in a drastic increase in foreign investment in Africa.
The African continent covers 20% of the world’s land area and includes 54 fully recognized countries, nine territories and two de facto independent states.
Companies Investing in Africa
With abundant mineral resources, low labor costs and high industry growth rates, Africa is home to vast investment opportunities. A growing list of leading international companies continues to benefit from the unique investment prospects on offer in Africa. This growing list includes McDonalds, Multichoice, Microsoft, Uber, and Procter & Gamble. The international vehicle manufacturing industry in Africa also continues to thrive with industry giants like Ford, BMW, Nissan, Daimler, Volkswagen and Mercedes Benz all making on-going, large-scale investments.
According to the World Economic Forum, half of the fastest-growing economies in the world in recent years have been in the African continent.
Investors with Interest in Africa
Africa offers a massive selection of investment opportunities and has become a prime destination for emerging markets investors. As African trade barriers are falling, intra-African trade begins to hold enormous potential. Driven by socio-economic transformation and a digital revolution, Africa is catching up to the rest of the world and even the smallest African economies are picking up and drawing investors from across the globe. France, China, the Netherlands, the United States and the United Kingdom are showing particular interest in the emerging markets in Africa.
Africa’s resources, security challenges, and economic opportunities ensure that its global importance will increase in the coming decades.
Featured Stories from Africa
Read our featured stories from around Africa, and discover the latest investment developments and trends that may help shape your view of the region.