Africa: The Next Success Story?
Euromonitor’s Country Insight Editor, Media Eghbal, discusses how the World Cup has brought attention not just to South Africa, but Africa as a whole. This global recognition gives Africa an opportunity to showcase its benefits. However, not all African countries are at the same stages of development.
The largest advantage that Africa has is that it proved to be resilient to the economic downturn due to the fact that it is not as integrated into the global economy. The economic growth Africa is experiencing is projected to grow steadily over the next 5 years. Africa is also home to many untapped natural resources and uncultivated land.
Consumer potential for Africa lies within its large population, which reached 1 billion in 2009. It is also the fastest urbanising region in the world. This growing urban population, paired with economic development, will bring demand for transport, housing, education, and consumer goods.
There are risks, however, to the business environment in Africa. There is war, poverty, and famine in some countries, as well as income inequality and unemployment. There is also an education problem which threatens to create skill shortages, which will impede the business environment in Africa in the short-term. However, Africa as a whole still shows great potential and could be the next ‘success story’.
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