Africa is the world’s second-largest continent covering about one-fifth of the total surface of the earth. Over the years, it has gone from being seen as a “Hopeless Continent” to an interesting prospect for emerging markets due to its potential.
The continent is well-endowed with extensive natural resources, a young and increasingly educated workforce, more stable governance, and gradually gaining more projections for economic growth than it saw in previous years.
Research has proven that countries under the sub-Saharan region of Africa have very huge and rich lands worth 202 million hectares. These lands lie uncultivated and unattended. Irrespective of the huge natural and mineral resources, which make the continent a rich one, the people within are unable to tap into them to either maximize wealth, create jobs or improve the standard of living amongst themselves to alleviate poverty.
This could be as a result of a constraint on finance, economic growth and development policies, mindset etc. This has opened up a favourable opportunity for investors to tap into and maximize wealth.
Fortunately, lands in Africa are very fertile. The climate is equally very favourable for crops like cassava which is gradually gaining global recognition for its immense benefits. This has made agriculture easier and a more attractive venture for many investors. Even though the majority of the indigenes of Africa are into agriculture, only 10% of Africa’s arable land is being cultivated currently. This has made Africa a magnet for Foreign Direct Investment.
Another advantage the continent has is a cheap labor force. The continent is seen to be undergoing a demographic transformation, with the youth as its theme. There are portions of Africans in their 20s and 30s with fewer dependents – both old and young – that will play out over the next decade.
With the anticipation made by the World Bank that in 2030, household consumption is expected to reach $2.5 trillion, Africa will soon belong to the middle or upper classes, and there will be a higher demand for goods and services. Sectors likely to experience this growth in the next 30 years will include the food and beverages processing industries in which cassava starch processing may play a very important role.
Investors in and out of Africa can consider taking up projects and exploring the massive opportunities the continent presents. This will be a win-win situation; while profit is being realised by investors who tap into these opportunities, economic growth and development will be realised by the continent.
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