EENI Global Business School

Africa: Next Emerging Continent



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Why do business in Africa? Deep African Socio-economic transformation. African Middle Class

African Business and Economy
Module: African Economy

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

  1. African Population
  2. New Role of African women
  3. Deep African Socio-economic Transformation
  4. Emergence of African Businessperson
  5. Trade and Regional Integration in Africa
  6. Need for Infrastructures
  7. Better Governance in Africa
  8. Africa and global market

Africa: the Next Emerging Continent. Why do business in Africa? Deep African Socio-economic transformation

We Trust in Africa (Affordable Higher Education for Africans)

African Student, Doctorate, Master, International Business, Foreign Trade

Artificial Intelligence (AI) for Global Business (Online Course

1- African Population.

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

  1. African population:
    1. 2015: 1.1 billion people
    2. 2030: 1.6 billion people
    3. 2100: 4 billion people (1 billion in Nigeria)
    4. In thirty-five years, 25% of the world's population will be African
  2. Demographic dividend
  3. Emerging middle-class in Africa: 350 million people (34% of the African population). 1,100 million in 2040 (42% of the African population)
  4. Urbanization in Africa: 353 million 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.

Sample:
African Population. In thirty-five years, 25% of the world's population will be African.

2- New Role of African Women

519 million Women: the fundamental pillar of African Economic development.

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

3- African Economy: Deep African Socio-economic Transformation.

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. The African Frontier Markets are Nigeria, Kenya, Angola, Ghana, Ethiopia, Morocco, Tanzania, Algeria, Ivory Coast, Zambia, and Uganda
  4. South Africa is a member of the BRICS Countries
  5. Top African economic sectors: Agriculture (25% of GDP) and services
  6. African manufacturing sector: 10% of Africa’s GDP
  7. Mineral resources
  8. Commodities prices
  9. African demand increment
  10. Boom of e-commerce. Information and communication technologies: 7% of Africa’s GDP. African mobile revolution (650 million mobile users)
  11. Agenda 2063: “the future we want for Africa” (the African Union)

Nigeria is the first world's frontier market.

4- African Businessman.

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, Mike Adenuga, Mohamed Mansour, Issad Rebrab, Folorunsho Alakija, Othman Benjelloun, Patrice Motsepe, Aziz Akhannouch, Miloud Chaabi, Theophilus Danjuma, Tony Elumelu

5- Intra-African Trade and Regional Integration in Africa.

Towards the African Continental Free Trade Area.

Intra-African Trade and African Economic Integration.

  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 the Port of Durban (ZA) to Lusaka: 8,000 dollars (1,800 dollars from Durban to Japan)
  5. Africa foodstuff imports: 39 billion dollars annually
  6. Regional Economic Communities (REC): Trade and Market Integration, obstacle reduction to Intra-African trade, Sectoral Harmonization Policies, Macroeconomics Policy Convergence, Financial and Monetary Integration
  7. COMESA-EAC-SADC Agreement
  8. Harmonization of Business Law in Africa (OHADA)
  9. African Continental Free Trade Area (AfCFTA): fifty-four countries, 1 billion people, combined GDP: 1.2 trillion dollars

6- Infrastructures in Africa.

Programme for Infrastructure Development in Africa (PIDA).

The need for infrastructures in Africa.

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

7- Governance in Africa.

Better business environment in Africa.

A better governance 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 WB. Mauritius is the African Country with the highest rank followed by South Africa, Rwanda, Ghana
  7. Tax revenues increment
  8. Fewer African conflicts (“Silencing the Guns” - African Union)

8- Africa and global market.

Africa: 3% of global trade.

  1. African share of global manufacturing production: 1.5%
  2. Emergence of partnership with the BRICS (Brazil, 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

Sample:
African Continental Free Trade Area (AfCFTA) 1 billion people, 1.2 trillion dollar

EENI African Business Portal.


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