Over the last several years, Africa has been home to some of the most exciting emerging markets on the globe. Due to a growing middle class in the many urban areas across the continent, businesses across the globe are flocking to a number of African countries to start and expand new and current ventures.
According to Cushman and Wakefield’s 2015 Emerging and Frontier Markets Report — a 55-page study that offers investors insights into emerging markets — Africa dominates the top 10 rankings for countries with promising emerging markets. South Africa topped the list in third, Ghana was fourth, Morocco was eighth, and Tunisia was tenth. In the 2014 report, Botswana was in the top 10 ranking as well.
Economic growth on the continent appears to be headed upwards of 6.6% over the next several years, a number that has induced a wide variety of vendors, investors, and businesses casting their eye on many countries. Particularly, how do these estimations impact investors? It presents an opportunity for expansion and growth of a variety of industries. Africa is beginning to take off, and now is the time to bring many new companies and other ventures to a region that has yet to be oversaturated.
Alongside Africa’s growing middle class, other reasons cited for African nations having secured many spots on the top ten list include an improvement in overall technology and transparent real estate markets. Until recently, the very notion of a private equity firm racing to place bets on the African continent seemed ludicrous. Now, a climate of competition in the aforementioned top-10 countries as well as other nations has arisen from these conditions.
An example of a flourishing African business is the Ibru Organization, founded in 1957 when Michael Ibru, the founder, began selling imported frozen fish from the back of his truck. Since then, the company has grown considerably; they have expanded into other sectors such as brewing, construction, bulk storage, warehousing, and importation with continued to expansion based on the strength of the local economy.
Africa’s progress over the past few years has been amazing. Although the continent as a whole has a long way to go, and some skeptics may assert that there remains too much risk in the region, Africa boasts the most promising countries in the world.