In the 1990s, it was clear that the near future would be made in Asia.
Today, it’s just as evident to those paying attention that the near future will be made in Africa. Yet few in Europe and North America are paying attention.
This sets up a tremendous opportunity for risk-tolerant investors eager to take advantage of the continent’s growth potential. If you’re among them, here’s why you should seriously consider turning your attention to Africa in 2024 and beyond.
- Many African Countries Are Bastions of Good Governance
Outside perceptions of African governance models often arise out of incomplete or inaccurate information. For all its challenges in this regard, the continent has a surprisingly rich collection of stable, prosperous democracies that welcome outside investment and work to manage emerging-market risk.
Standouts include Botswana, Kenya, Mauritius, and Cape Verde. Christopher Roy Garland of Botswana calls his adopted home country “the place to be” in southern Africa. He’s proud others are seeing the light, too, noting that Botswana was “until recently, quite a well-kept secret outside the region.”
- Regional Economic Cooperation Is at an All-Time High
Africa has some of the world’s largest and best-developed economic cooperation zones, such as the Southern African Development Community. With 16 countries covering much of Africa’s southern half, the SADC is a major force in large-scale infrastructure projects that drive economic development across the region.
- Infrastructure Investment Is Accelerating on the Continent
Thanks in part to organizations like the SADC, African infrastructure investment is accelerating. Some of the most exciting developments concern international railway projects connecting new or expanded mines in the continent’s interior with deepwater ports on its coasts. These lines will help transport much of the volume of critical minerals the world will need in the coming century, including copper and cobalt.
- African Countries Are Emerging As Global Standard-Bearers
Successful regional cooperation efforts like the SADC show that Africa is adept at attracting outside investment. Increasingly, it’s driving the conversation — and dollars — as well. To cite just one example, President William Ruto of Kenya stands out as a global leader in sustainable finance and a key voice driving energy investment to the Global South.
- Demographic Trends Favor Continued Growth
Africa continues to grow rapidly thanks to high birthrates and falling maternal, fetal, and newborn mortality. The United Nations expects its population to grow from about 1.4 billion today to 2.5 billion in 2050.
Africa’s projected growth is a tailwind for investors seeking new markets. It comes alongside a general, if uneven, increase in standards of living across the continent. By mid-century, sub-Saharan is likely to be much more affluent than today and could be one of the world’s few regions still adding population.
- The Next Wave of Tech Innovation Could Happen Here
Outsiders have long seen Africa as a test market for large-scale deployments of new forms of infrastructure technology, such as decentralized, renewable energy grids and mobile phone networks. Increasingly, innovation is happening on the continent as well, with ambitious plans for tech hubs in places like Zanzibar and Lagos, Nigeria.
A Rising Tide Lifts All Boats
It’s often said that a rising economic tide lifts all boats, from the most to least fortunate among us. Nowhere on the planet is this more true right now than in Africa, where economic output and standards of living are rising in one of history’s broadest beneficial wealth transfers.
Needless to say, this is an amazing opportunity for investors on and off the continent. If you’re still sitting on the sidelines, there’s still time to participate — but the window won’t stay open forever.
