The Boston Consulting Group looks at Africa as the last frontier for global investment.
Africa is growing larger on the corporate map. Mostly ignored by multinationals since the 1980s, the continent is now receiving their attention and investment, and for good reason. Growth rates are rising, and many long-running wars and conflicts are giving way to democracy and bureaucratic competence. Infrastructure and connectivity are improving.
As competition for growth in Southeast Asia and Latin America gets fiercer, companies are seeking the next frontier market. They have understandably trained their sights on Africa, whose growth trajectory has been the steepest in the world over the past decade and is likely to remain so into the future, with forecasts projecting 6% annual increases over the next decade. Emblems of optimism, progress, and consumerism abound in the form of smartphones, paved roads, bank accounts, and peaceful transitions of power. Over the past two years, dozens of media and analyst reports have increased awareness of Africa’s rise and the opportunity for private investors and multinationals.