|‘Africa sole continent likely to achieve double-digit economic growth by 2025’ |
could have a working population higher than India and China combined.
The continent’s trade volume is also expected to grow threefold by 2030
The big advantage that Africa does have 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 Southeast Asia.”
Africa is set to become the second fastest growing continent by 2025, with GDP set to touch US$4.5 trillion
A Frost and Sullivan report, in the form of a video titled Mega Trends in Africa, states that urbanisation, mobility, infrastructure, natural resources, telecom and inter-regional trade could make Africa the last growth frontier.
According to the analysts at Frost & Sullivan, Africa is the only continent poised to achieve double-digit economic growth within the next decade and close to half the population will live in large cities.
The report also said that 58 per cent of the working population will thrive in 2025 and will be mostly within the ages of 15-64. If this trend spills over into the next two decades, Africa could have a working population higher than India and China combined.
Frost & Sullivan Africa operations director Hendrik Malan said, “The growth rates promised by Africa are second to that of Southeast Asia at the moment. The big advantage that Africa does have 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 Southeast Asia.”
The analysis has also singled out certain sectors that are poised to register maximum growth and are already showing potential to ring in big numbers. Firms operating in the digital currency space, for one, are among the big gainers. By the end of 2025, there will be 12mn Bitcoin wallets in Africa and nearly a third of all Kenyans will use a Bitcoin wallet.
Retail is expected to grow significantly in the next five years and will account for nearly seven per cent of total sales in Africa in 2025. Nigeria, South Africa, Egypt, and Kenya are emerging as the top markets for online retailing in Africa.
Meanwhile, Africa’s energy demand will grow to 930.4 MTOE in 2025, which is more than double the current demand. The mining and minerals industry will be the bulk consumers of energy by 2025. Africa will grow from its current nascent stage to an emerging renewable energy hub with a substantial compound annual growth rate (CAGR) of eight per cent by 2025, stated the report.
The continent’s trade volume is also expected to grow threefold by 2030. East Africa is projected to have the highest growth in trade volume, driven by improved transportation infrastructure. The Proposed Free Trade Area (T-FTA) between South African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC) is expected to drive imports by an average of 60 per cent by 2020.