Africa: the Next Emerging Continent

EENI- School of International Business

Sub-subject Subject (Course): Africa- the Next Emerging Continent. Why doing business in Africa?

Some reasons for doing business in Africa and trust in the potential of the African continent:

1- African Population

2- The New Role of the African women

3- Deep Socio-economic Transformation of Africa

4- The Emergence of African Businessperson

5- Trade and Regional Integration in Africa

6- The Need for Infrastructures

7- Better Governance in Africa

8- Africa and the Global Market.

Africa: the Next Emerging Continent

Masters and Doctorates related to Africa:
  1. Masters: Africa, Frontier Markets, and International Business
  2. Professional Doctorate in Business in Africa (Distance learning)
  3. Course: African Economy

Languages: English or French Afrique Emergent Portuguese Africa Spanish Africa Emergente.

Economic Area of the African Civilisation.

1- African Population.

“The future of humanity is ever more African” (UNICEF).

  1. African population:
    - 2015: 1.1 billion people
    - 2030: 1.6 billion people
    - 2100: 4 billion people (1 billion in Nigeria)
    - In thirty-five years, 25% of the world's population will be African
  2. Demographic dividend
  3. Emerging middle-class in Africa: 350 millions of people (34% of the African population). 1,100 million in 2040 (42% of the African population).
  4. Urbanisation in Africa: 353 millions of people. In 2040, the half of Africans will live in a city
  5. Young African population: 60% (world's largest labour market)

Moreover, we cannot forget that...

Africa is the cradle of humanity.

2- The New Role of the African women

519 millions of African women: the fundamental pillar of the African economic development.

  1. 70% of agriculture labour in Africa
  2. Produces 90% of all African food.
  3. H.E. Dr Nkosazana Dlamini-Zuma - Chairperson of the African Union Commission
  4. Ellen Johnson-Sirleaf (President of Liberia)

3- African Economy: the Deep Socio-economic Transformation of Africa.

African economic growth: 5% in the last decade.

  1. The largest African economy: Nigeria, followed by South Africa, Egypt, Algeria, Angola, Morocco, Sudan, Kenya, Ethiopia, Libya
  2. Africa has twenty global frontier markets (50% of the total of the World)
  3. African Frontier Markets: Nigeria, Kenya, Angola, Ghana, Ethiopia, Morocco, Tanzania, Algeria, Ivory Coast, Zambia, Uganda
  4. South Africa is a member of the BRICS Countries
  5. Top African economic sectors: Agriculture (25% GDP) and services.
  6. African manufacturing sector: 10% of African GDP
  7. Mineral resources
  8. Commodities prices
  9. The increment of African demand
  10. The boom of e-Commerce. Information and communication technologies: 7% of African GDP. Africa’s mobile revolution (650 million mobile users)
  11. Agenda 2063: “the future we want for Africa” (African Union)

Nigeria is the first world's frontier market

4- The emergence of African Businessman.

  1. Alhaji Aliko Dangote (the richest men in Africa, Nigeria).
  2. Isabel dos Santos (the richest women in Africa, Angola)
  3. Onsi Sawiris, Dr. Mike Adenuga, Mohamed Mansour, Issad Rebrab, Folorunsho Alakija, Othman Benjelloun, Patrice Motsepe, Aziz Akhannouch, Miloud Chaabi, Theophilus Yakubu Danjuma, Tony Elumelu

5- Intra-African Trade and Regional Integration in Africa

Towards the African Continental Free Trade Area.

  1. Low intra-African trade flows (10 - 13%).
  2. Near 80% of African exports are exported out of Africa
  3. Action Plan for Boosting Intra-African Trade (objective: 25% of intra-African trade)
  4. Cost to transport a container from Port of Durban (ZA) to Lusaka: 8,000 dollars (1.800 dollars from Durban to Japan)
  5. Africa imports of foodstuff: 39 billion dollars annually.
  6. Regional Economic Communities (REC): Trade and Market Integration, reduction of obstacles to intra-African trade, Harmonisation of Sectoral Policies, Macroeconomic Policy Convergence, Financial and Monetary Integration
  7. Tripartite FTA COMESA-EAC-SADC
  8. Organisation for the Harmonisation of Business Law in Africa (OHADA)
  9. African Continental Free Trade Area (CFTA): fifty-four countries, 1 billion people, combined GDP: 1.2 trillion dollars

6- The need for infrastructures in Africa

Programme for Infrastructure Development in Africa (PIDA).

  1. Energy. 600 million of African lives without access to electricity
  2. Transport. 18 billion dollars in annual investment.
  3. Development of African Corridors
  4. Information and Communication Technologies
  5. Trans-boundary Water Resources.

7- Better governance in Africa

Better business environment in Africa.

  1. More democratic governments
  2. African Peer Review Mechanism
  3. Peaceful elections
  4. Less corruption
  5. Better business environment
  6. Improvement in the Easy of Doing Business rank of the World Bank (WB). Mauritius is the African country with the highest rank followed by South Africa, Rwanda, Ghana
  7. The increment of tax revenues.
  8. Fewer African conflicts (“Silencing the Guns” - African Union)

8- Africa and the Global Market.

Africa: 3% of the global trade.

  1. Africa’s share of global manufacturing production: 1.5%
  2. The emergence of partnership with BRICS (Brazil, Russia, India, China, South Africa).
  3. Trade between China and Africa: 200 billion dollars.
  4. Trade with India: 90 billion dollars
  5. Key players: the United States, China, India, the BRICS Countries, the Arab countries, South Korea, Japan, Turkey

Samples - Africa- the Next Emerging Continent

African Population

H.E. Dr Nkosazana Dlamini-Zuma

Doing Business and economic governance in Africa

African Free Trade Area

Intra-African Trade

African Peer review mechanism

Forum on China-Africa Cooperation

Alhaji Aliko Dangote Nigerian Businessman

Isabel dos Santos (Richest African Woman)

Folorunsho Alakija Nigerian Businesswoman

Mike Adenuga Nigerian Businessman

Programme for Infrastructure Development in Africa (PIDA)

Dakar-Lagos Trans-African Corridor

Index of African Governance

U-EENI University