Establishing and supporting businesses in Africa is twinned with risk; but this is not an uncommon partnership. High-risk endeavours usually have the highest rewards. African investment also includes the opportunity to have a positive impact on local and national infrastructure, SDGs, the economy, and the digital divide.
Africa is made up of 54 countries, according to the United Nations (UN). It is larger than the United States, China, India, Japan and the whole of Europe put together.
Most of these countries are underdeveloped, with poor infrastructure and degrees of governmental instability. It has been reported that Sub-Saharan Africa (SSA) was the world’s slowest growing region in 2021. SSA also has some of the most expensive 1GB basket prices globally.
There is a clear international focus on Africa. The second largest continent is receiving significant investment which is financing the roll-out of data centres, fibre connectivity in new areas, and the deployment of mobile networks in key markets.
Africa is home to 1.4 billion people, accounting for 16.72% of the world’s population. This is predicted to rise to 4.39 billion by 2100.
It is the most central continent in the world, making Africa the perfect hub for reaching the four corners of the world. It is also the most profitable region in the world. According to the Overseas Private Investment Corporation (OPIC), Africa offers the highest returns on foreign direct investment (FDI) globally. In fact, according to the recent UN Conference on Trade and Development, Africa’s return on foreign investment between 2006 to 2011 reached 11.4%— significantly more than the global average of 7.1%.
Currently, the top three recipient countries in Africa for FDI in 2020 were Egypt, The Republic of the Congo and South Africa. Since 1 January 2021, the African Continental Free Trade Area has been in effect, creating the world’s largest free-trade area with all 54 countries participating. This agreement essentially creates one single market allowing foreign businesses to reach markets that were once difficult to approach.
The median age across Africa is 19.7 years.
Africa has a young and growing workforce: a perfect condition for businesses wanting to invest. Africa is the fastest growing continent, and by the turn of the century will be the only region with population growth.
Six of the world’s 12 fastest-growing countries are in Africa (Ethiopia, Democratic Republic of the Congo, Côte d’Ivoire, Mozambique, Tanzania and Rwanda).
With almost 60% of the population under 25 years old, it is also the youngest continent. There is a surplus of workers that want and need jobs. Unlike other parts of the world, Africa is not in a candidate-driven market; it’s an employer market and that means your business can recruit the best talent, without facing fierce competition. A young and abundant labour market also has the advantage of lowering production costs. Foreign investment will hopefully have the additional advantage of raising wage rates in Africa and improving market efficiency.
Africa is the least-developed continent, barring Antarctica. With its fast-growing population, governments want and need infrastructure projects to support this budding populace. The opportunity for development is huge, and African countries are adopting various measures to attract investors.
We will take a look at five of the most important emerging markets in Africa: Nigeria, South Africa, Algeria, Ethiopia and Namibia. We make the business case for investment and also assess the matrix of opportunity versus risk.
Overview
MNOs
Opportunities
Challenges
Overview
MNOs
Opportunities
Challenges
Overview
MNOs
Opportunities
Challenges
Overview
MNOs
Opportunities
Challenges
Overview
MNOs
Opportunities
Challenges
If you have an opportunity in Africa, are planning an M&A, or want to partner with an African business we would love to talk to you. At Cambridge Management Consultancy we have a number of consultants who have year's of experience and expertise in the African telecommunications markets. They know how to operate and overcome legal and cultural barriers, as well as having the necessary contacts to help you save time and money. We are excited to share our knowledge and skills to support growth, infrastructure and jobs in these regions. If you want to discuss with one of our team directly then please get in touch with Charles Orsel des Sagets, Steve Brookman, or Andrew Kinnear; or alternatively contact us via the website form below.
Cambridge Management Consulting is a specialist consultancy drawing on an extensive network of global talent. We are your growth catalyst, assembling a team of experts to focus on the specific challenges of your market.
With an emphasis on digital transformation, we add value to any business attempting to scale by combining capabilities such as marketing acceleration, digital innovation, talent acquisition and procurement.
Founded in Cambridge, UK, we created a consultancy to cope specifically with the demands of a fast-changing digital world. Since then, we’ve gone international, with offices in Cambridge, London, Paris and Tel Aviv, and 100 consultants in 17 countries, and clients all over the world.
Find out more about our telecommunication services and full list of capabilities
Subscribe to our insights