Africa, like the rest of the world, will be hard hit by the after- effects of Covid-19. However, in the long-term, many countries in Africa will provide great opportunities for companies that wants to expand and diversify their operations.
In 2019 the economies of several African countries showed a distinct uptick and the outlook for Africa was extremely optimistic. Even though the outbreak of the global pandemic Covid-19 early in 2020 interrupted this upward trend, and severely disrupted global markets, Africa’s long-term future looks bright.
Despite the health impacts of Covid-19 and numerous additional challenges, Africa’s human population is increasing at an exponential rate, with the highest growth taking place amongst its young people. If governments implement structural reforms in time, this demographic dividend will pay off in the medium to long term as more working age people enter the labour market. Young Africans are eager to resolve problems through innovation and new technology. Moreover, the after-effects of Covid-19 will alter existing geopolitical relationships, bilateral agreements, and trade patterns; and intra African-trade will boost most national economies.
In search of high growth areas in the aftermath of Covid-19, Africa will feature high on the list of companies diversifying their investment portfolios or entrepreneurs looking to establish operations in developing economies. The lack of infrastructure in Africa is often regarded as a constraint, but it also creates unlimited opportunities. The rewards of investing in African economies now, before the indicators head north again, will be significant, not only for those companies with a substantial appetite for risk, but also for Africa in general, which is in dire need of development.
Economic sectors like energy (renewables as well as oil and natural gas), technology and financial systems are expected to boom, while, on the other hand, primary sectors like agriculture, construction, mining and manufacturing, the foundations of any developing country, will continue to drive the much necessary growth across the continent. For companies looking to expand into the developing world, and for investors with a medium to high risk appetite looking for good returns, Africa could just be the answers. The best time to invest in Africa is now.
WhyAfrica provides business intelligence about Africa based on thorough research and ethical journalism. We advise and assist companies expanding their global footprint into Africa. WhyAfrica has two divisions: Content generation and consulting.
The content generation arm provides readers and subscribers with updated business intelligence about operating in Africa. Our newsletters and interactive magazines create great opportunities for companies to advertise their offerings to a large and relevant audience.
The consultancy division carries out research and puts together multidisciplinary reports about the business environment in specific African countries and regions. To produce these reports, we undertake reconnaissance trips on behalf of our clients. The final product is presented in the form of a multimedia, interactive report which includes, amongst others, in-depth written articles, videos and podcasts of the operational challenges, opportunities, and potential risk in the local area of operation. Clients are regularly updated about developments in specific regions and countries that might influence their strategy and business decisions.
Our researchers and writers are multidisciplinary and use a unique approach based on traditional journalism, intelligence gathering and ethnography. WhyAfrica reports are written in a creative, yet clear, informative, and business-like style. We assist our partners and clients in navigating the complex operating environments of Africa, while mitigating the potential risks.