“Investing in Africa” is a common phrase these days, yet, the question begs, how does one approach a continent of 54 countries with a diverse array of economic, sociocultural, political, and environmental landscapes for investments. The investment opportunities offered by each country also differ substantially, a fact often not recognised.
The recent rise of regional hubs across the continent has been garnering attention as countries acknowledge that full integration within these regional hubs is key to improving the often-reported difficulties of conducting cross-border business on the continent. In addition, full integration brings with it the potential for increased investment flows into the continent through economies of scale, enabling Africa to participate in the world economy as a truly global competitor.
The purpose of this paper is to focus on opportunities created by the emerging “new” economies and cross-border trade within these regional hubs; namely Central Africa, East Africa, North Africa, Southern Africa, and West Africa.
There is a rise in cross-border purchases within the continent, whether formal or informal, which are essential features of market economies. Cross-border consumers visit other countries for short periods, with shopping as their main purpose. The goods they buy range from clothes to car engines and are generally on-sold in their home countries or taken back to their families. Cross-border trade has the ability to have positive macro-economic and social ramifications. These include food security and income creation, particularly for rural populations on the continent that would otherwise suffer from social exclusion.
Click here to download Deloitte on Africa – The New Economies in Africa which discusses each regional hub individually
For more information relating to business opportunities in Africa, contact Anushuya Gounden (Partner – Head of Africa Nerve Centre) at firstname.lastname@example.org or Taki Nkhumeleni (Manager – Africa Nerve Centre at email@example.com
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