Africa is expected to become the second fastest growing region in the world by 2025, with GDP of $4.5-trillion, analysis by Frost & Sullivan shows.
In a video report ‘Mega Trends in Africa’, Frost & Sullivan noted that urbanisation, mobility, infrastructure, natural resources, telecommunications investments and inter-regional trade, were all untapped opportunities that contributed to the continent being the last growth frontier.
It was expected that close to half of the continent’s population would live in large cities and that 58% of its population would be of working age, between 15 and 64, in 2025.
If this trend continued for the next 20 years, Africa would have the highest labour population, surpassing that of China and India.
“The growth rates promised by Africa are second to that of South East Asia at the moment.
The big advantage that Africa has, is the lack of infrastructure and the lack of legacy systems because our ability to leapfrog technologies and get access to that growth much sooner than, for instance, South East Asia had the ability to do, is significantly better,” Frost & Sullivan Africa operations director Hendrik Malan noted.
Key trends identified:
•Africa would have “tremendous market potential” for digital currency firms, e.g. Bitcoin used by 33% of Kenyans.
•Online retail would grow significantly in the next five years to account for nearly 7% of total retail sales in Africa in 2025.
•Energy demand would more than double
•Africa would grow to an emerging renewable-energy hub with an annual growth rate of 8%, while trade volumes were likely triple by 2030.
•East Africa would have the highest growth in trade volume, driven by improved transportation infrastructure.
•The proposed free trade area between SADEC, the Common Market for Eastern and Southern Africa and the East African Community would drive imports up by 60% by 2020.
