Africa’s economic growth is creating substantial new business opportunities that multinational companies often overlook.
At least four categories together could be worth $2.6 trillion in annual revenues by 2020:
consumer-facing sectors - retailing, telecommunications, and banking, among others - agriculture, natural resources, and infrastructure,
New projections from the McKinsey Global Institute (MGI) show consumer sectors—the largest opportunity—are already growing
two to three times as fast as those in the countries belonging to the Organisation for Economic Co-operation and Development, or OECD.
This growth will create more consumer markets large enough to attract multinational companies.
Africa’s agriculture holds enormous potential for companies across the value chain.
With 60 percent of the world’s uncultivated arable land and low crop yields,
Africa is ripe for a “green revolution” like those that transformed agriculture in Asia and Brazil.
The barriers to raising production in Africa are well-known and complex,
but if they could be overcome, MGI estimates that the continent’s agricultural output
could increase from $280 billion a year today to $500 billion by 2020 and as much as $880 billion by 2030.
Further growth in Africa’s resource sectors is likely.
MGI analysis suggests that the continent’s production of oil, gas, and most minerals, measured by volumes, may continue to expand steadily by 2 to 4 percent a year.