Why we should all have Africa on our minds
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Sentiment in emerging markets was one of the key topics for finance leaders at the IMF spring meetings in Washington DC – but slower growth in parts of Asia and political discord in some emerging economies should not be allowed to obscure the strong economic potential of these markets.
Businesses, banks and investors from around the world are turning to Africa in search of the next frontier. The opportunities are huge, with an estimated USD38 billion needed each year in infrastructure investment alone. Africa has a new and confident middle class, trade and investment is growing rapidly – particularly with Asia – and Africa is leapfrogging old technologies, leading the world in innovations such as mobile payments. Look at the phenomenal growth of M-Pesa in Kenya, amassing more than 18 million customers in just a few years.
Africa offers an extraordinary bright spot on the world economic map, having outperformed global growth for more than a decade. We’re expecting GDP growth in sub-Saharan Africa to reach 5.4 per cent this year, compared to 1.3 per cent in the euro zone.
Standard Chartered is one of a number of businesses that have built strong ties with the continent for more than a century, opening its first branch in Port Elizabeth in 1863. We know we can do business as Africa’s economies grow, but we see a massive opportunity for us and other companies to do more than that, helping to create a sustainable economic success.
In the rush to be part of Africa’s growth story, we can’t turn a blind eye to the challenges. If Africa is to sustain its rate of growth in the long run, it needs...
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