Harnessing the Potential of Africa’s Economies

A fascinating new report has just been launched by McKinsey, ‘Lions on the Move, Realizing the Potential of Africa’s Economies’, which suggests that although there have been some economic challenges over the past five years, the continent’s fundamentals remain strong. Africa’s real GDP grew at an average of 3.3 percent a year between 2010 and 2015, and as a whole is projected by the International Monetary Fund to be the world’s second-fastest growing economy to 2020. In an ageing world, Africa has the advantage of a young and growing population and will soon have the fastest urbanization rate in the world. By 2034, the region is expected to have a larger workforce than either China or India—and, so far, job creation is outpacing growth in the labor force. Accelerating technological change is unlocking new opportunities for consumers and businesses, and Africa still has abundant resources. Spending by consumers and businesses today totals $4 trillion. All in all, the future looks bright for entrepreneurs who want to look to Africa’s exciting marketplace for the growth and development of their own businesses.