Comprising more than 50 diverse countries, six of which are within the world’s ten fastest-growing nations, the potential of the second-largest continent is coming to fruition…
With more than 50 countries, not only is Africa a diverse continent, but also a resilient one. In 2011, more than 15 African economies registered growth rates higher than 5%, despite a slow recovery from the global recession. And as the world economy recovers cautiously, Africa’s progress is expected to accelerate over the next two years as the world’s emerging economies continue to grow more quickly than mature ones.
Discussing the IMF’s growth figures for 2013-14, Ernst & Young report that global emerging economies are expected to grow 5-6%, possibly as much as four percentage points higher than growth in developed economies. Of these emerging economies, Ernst & Young propose Africa is likely to provide the most consistent and robust growth rates over the next 10-15 years.
Although often perceived as a high-risk, difficult and a sometimes dangerous place to do business, increased political stability and improvements in education and healthcare are transforming Africa’s economies and demographics. In their Doing Business in Africa report, Ernst & Young state: “Our own analysis and experience indicates that many African countries benchmark well on key risk-related factors relative to emerging markets in other regions. We are actually seeing a very positive risk/reward relationship in Africa.”
Africa’s attractiveness to international investors continues to improve due to expanding consumer markets with a rapidly growing significant middle class, a major driving force in any economy, various structural reforms and economic growth. Africa – and more importantly, African consumers – will be firmly on the global stage in 2014.*
Africa is our destination focus for the first quarter of 2014. Please keep checking back at this blog and follow us on Twitter at @dhlexpressuk where we will be posting the latest news, information and tips on trading with the region.
You can find more guidance about trading with Africa from the following:
UKTI: working with UK-based businesses to ensure their success in international markets
British Chambers of Commerce: offering advice and support to British businesses
GOV.UK: the government’s central site combining Directgov and Business link, providing a simpler and faster way to locate free information and advice about importing and exporting.
Open to Export: a community driven service for small and medium sized businesses looking for help and support in exporting from the UK.