As corporate India slowly wades into Africa, it discovers a continent full of opportunities. This is the new frontier for global businesses and Indian companies are not to be left behind in the gold rush to prime their growth and resources to fire their factories. Indian companies, be they in Information Technology, pharmaceuticals, telecom, retail, infrastructure, see Africa as a pot of gold at the end of the rainbow.
The size of the African opportunity is astounding, a continent of 53 countries (now south Sudan comes into existence i.e. 54 countries), and a population over the billion people. According to the World Bank, Africa has $860 billion worth of consumer spending. According to the Mckinsey Global Institute, Africa’s GDP will be around $ 2.6 trillion in 2020.
A big chunk of that growth will come from mining natural resources from the oil wells in Sudan and the copper mines in Congo, to Uranium in Niger, coal in Mozambique and ferro - chrome in S. Africa. According to Mckinsey, almost a Quarter of economic activity in the 15 countries that make for 85% of Africa’s GDP, is accounted for by resources.
Some facts and figures show that Africa is erupting in perspective of business growth:
1. At 4.9% compound annual growth rate of its GDP, Africa is third fastest growing region. ( Source: World Development Indicators, IMF)
2. By 2020, Africa’s Consumer spending will be $ 1.4 trillion and collective GDP will be $ 2.6 trillion.
3. By 2025, around 47% of Africans will be living in cities.
4. Mobile phone users/subscribers are 37%.
5. Africa possesses about 60% of the potential available cropland in the world. ( Source: E & Y)
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