AFRICA: AN EMERGING DESTINATION FOR INVESTMENTS
Africa is certainly in the mind of any investor who is looking for a naturally rich continent. Endowed with vast natural resources and being an emerging investment destination with huge untapped economic potentials, Africa is strategically positioned at the crossroads of the contemporary global economy.
With geographical proximity, historical and cultural affinities, Africa is not only a natural economic hinterland, but also attracting growing interest from both developed and emerging economies to establish strong trade links while exploring attractive investment opportunities. With a population of 1.3 billion and an economy expected to reach $2.6 trillion by 2020, the continent is already a Global political and economic powerhouse.
Since 2000, Africa has been the second-fastest-growing region in the world; in 2012, the continent was home to six of the world’s 10 fastest-growing economies. The continent’s real GDP, at $2.1 trillion in 2017, was larger than Russia’s US$1.630 and Brazil’s US$1.868 respectively, and is on a consistent growth rate, growing by 4.5 percent and is expected to reach 5.8% by 2020. Africa’s potential advantages for future growth include a large consumer market expected to grow from US$ 860 billion to US$1.4 trillion by 2020, a strategic geographic location, and a young and highly entrepreneurial population. The Continent boasts of abundance of riches, including 10 percent of the world’s reserves of oil, 40 percent of its gold, and 80-90 per cent of Chromium and the Platinum group metals. With 60 percent of the world’s uncultivated arable land, Africa’s agriculture hold enormous potentials for Halal companies across the value chain. Agricultural output is expected to increase from its present levels of US$280 billion to roughly US$880 billion by 2030, which will create demands for upstream and downstream products and economic activities, which will further generate US$ 275 billion by 2030.