Sub-Sahara Africa is poised to become the driver of global economic growth owing to the region’s unparalleled demographic dividend, a new report has said.
The Global Economy Watch report by PricewaterhouseCoopers (PwC) reckon that in less than three decades, Africa will have the biggest labour force in the world and will experience faster economic growth than any other region.
Already CEOs around the world are increasingly recognising the untapped potential of sub-Saharan Africa going by the fact that most major corporations are active in at least one of the four largest cities in sub-Saharan Africa that are Lagos (Nigeria), Kinshasa (DRC), Nairobi (Kenya) and Johannesburg (South Africa).
Of interest to note is that the ‘Next 10′ biggest cities in sub-Saharan Africa should also be exciting foreign investors. The population of these cities is projected to almost double by 2030, growing by around 32 million people. By 2030, two of the ‘Next 10′ – Dar es Salaam (Tanzania) and Luanda (Angola) – could have bigger populations than London has now.
Cities are the typical entry points for businesses trying to expand into new overseas markets because they enable closer interaction with customers in a relatively small geographic space, which in turn helps contain distribution costs.
“The economic activity in the ‘Next 10′ cities could grow around $140 billion by 2030. This is roughly equivalent to the current annual output of Hungary,” said Stanley Subramoney, Strategy leader of PwC’s South Market Region.
He added the challenges that policymakers face is to convert Africa’s demographic dividend into economic reality by overcoming hurdles low quality of ‘hard’ infrastructure like roads and railways, inadequate ‘soft’ infrastructure like schools and universities and growing pains arising from political, legal and regulatory institutions struggling to deal with a bigger and more complicated economy.
PricewaterhouseCoopers LLP (PwC)