Why focus on Africa?
Positive interest in Africa has increased over the last decade especially after the global financial crisis of 2007/2008. A number of structural changes and trends have combined to accelerate Africa’s growth. The attractive growth dynamics are being driven by the following long-term structural trends, namely; improving political dynamics and growing democracy, rapidly reforming business environments, positive demographics with a large youthful population that is rapidly urbanising, growing intra Africa trade, and growing investment in infrastructure. These are irreversible trends that will continue to make Africa an attractive investment destination for a number of decades.
Africa is huge
Africa accounts for 20% of the world’s land mass, and consists of 54 countries. These countries are on different economic, social and political trajectories, and each one offers different investment opportunities. Adventis is a specialist investment boutique that appreciates and understands the diversity and different opportunities across the continent.
The Economy is booming
Five years ago, growth was accelerating across the Africa continent, but in the last two years growth paths have diverged across both regions and countries. Some countries have continued to grow fast while others have experienced a marked slowdown as a result of lower resource prices. Despite this, Africa’s fundamentals remain strong. Africa as a whole is now projected by the International Monetary Fund to be the world’s second fastest growing region to 2020.
Africa is resourceful
Africa contains 60 percent of the world’s unutilized available cropland, as well as the world’s largest reserves of vanadium, diamonds, manganese, phosphate, platinum group metals, cobalt, aluminium, chromium and gold. It is also responsible for 10 percent of global exports of oil and gas, 9 percent of copper, and 5 percent of iron ore.
Africa’s consumption is about to boom
Today’s African population represents 15% of the world population (the second largest population after Asia) and it is projected to present more than 40% of world population growth by 2030. Africa’s population growth combined with GDP growth will drive consumption growth.
Demographic picture understates the economic impact
Access to Power about to grow massively due to Solar Power; currently over 50% of Africans are not connected to the grid;
Rapid Urbanisation will have significant multiplier effects on economic growth;
Accelerating advances in treatment of parasites (e.g. malaria) and other diseases will result in greater productivity;
Housing wealth is starting from a low (in many cases zero) base; as opposed to the developed world where the opposite is true;
Rapid growth of internet & telecommunications in Africa is bringing new workers into workforce; AND leading to significant developments in Online Education;
Less indebted countries
African debt levels are low compared to those in the developed markets. In particular, African countries have low leverage at an individual, corporate, and government level.