Where My Clients are Finding Growth in 2023
January 9, 2023 - As we're looking ahead into 2023, I am hearing from more CEOs, C-suite executives, and corporate directors who are looking for novel and different opportunities for sustainable growth.
My response: "You should consider Africa."
Globally, growth is slowing down, there’s a shortage of workers and a heightened concern about the availability of energy and certain food products, all of which are exacerbated by supply chain challenges. Africa can provide solutions to each of these.
Africa’s fast-growing population translates into fast-growing markets which present great opportunities for business. Consider 4 things companies look for and what Africa has to offer:
Locally sourced raw materials from food to minerals, fossil fuels and renewable energy: in abundance across Africa
Customers: today 17% of the world’s population lives in Africa; by 2050, that will grow to 26%, 1 in 4 people on this globe will live on the continent of Africa!
Loyalty: 60% of Africa’s population is under 24 years old; that’s a lot of years they could buy your products and services
Payment: over half of the world’s 1.2 billion mobile money accounts are in Africa
A study released by Korn Ferry stated that by 2030, there will be a global shortage of 85 million workers which will equate to $8.5 trillion in lost revenue. Contrast this to the fact that by 2050 the continent of Africa will have over 1 billion people of working age. This begs the question: Will companies build and expand across Africa or will Africans immigrate to fill these vacancies?
Thirdly, when it comes to sourcing energy due to recent geopolitical events, Africa offers a variety of sources - oil, gas, wind, solar, hydro, geothermal - and should be allowed to determine themselves where and how they are developed and used not only for global means, but to ensure their own populations have access to power, water, electricity, and internet.
Finally, the world’s supply chains are in upheaval. There is a need to diversify both raw materials sources and production sites. As so many raw materials are sourced from Africa and Africa has an abundance of working age people, it appears a logical conclusion would be to set up manufacturing, processing and packaging plants in Africa thereby integrating supply chains and value chains in order to uncover and tap into Africa’s vast commercial and industrial resources for Africa and the world’s benefit.
Investing in Africa usually requires people to change the lens through which they view Africa. Africa is not the perfect storm, Africa could well be the perfect solution!
Welcome to what I love to call, AfriCAN, the can-do continent!
Grab a copy of Africa: Open for Business and find out how you can join me and 1.3 billion Africans in the growth story of the African continent.
And to hear what Africa’s Heads of State have to say about business and the role political leadership plays, I interviewed them and asked them face-to-face. Read all about what I learned in Africa: Reframing Political Leadership.
Photo: author’s own