Most investors and businesses know about the remarkable potential of Africa – the world’s second-fastest-growing region, topped only by Asia.
According to the African Economic Outlook 2013 report, Africa’s agricultural, mining and energy resources could boost the continent’s economic growth and pave the way for a breakthrough in human development with all the spin-off benefit that it brings. Africa’s economic outlook for 2013 and 2014 is promising. The African continent’s economy is projected to grow by an average 4,8 per cent in 2013 and accelerate further to 5,3 per cent in 2014, with a number of countries even seeing double-digit growth.
Private consumption in Africa is higher than in India or Russia; it rose by USD568 billion between 2000 and 2010. From 2012 to 2020, consumer-facing industries are expected to grow a further USD410 billion, representing the continent’s largest business opportunity. At present, this is concentrated in 10 of the 53 countries – Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Sudan and Tunisia – accounting for 81 per cent of Africa’s private consumption in 2011. Apparel, consumer goods and food are expected to comprise of 45 per cent of the total consumption growth (USD185 billion). This is due in part to Africans spending a large share of their personal budgets on food and groceries, more than consumers do on average, in Brazil, China, India, or Russia.
Africa has by far most of the world’s unused land available for agriculture. As DuPont Pioneer president Paul Schickler put it: ‘Africa represents a significant opportunity for improved productivity. Africa is the new frontier, with one billion people to be added to its population by 2050, an expanding middle class and natural assets such as soil and climate.’
There has been a constant stream of news-making headlines regarding the potential rewards of doing business on this massively developing continent: ‘DuPont bets on Africa’s world food role’; ‘Standard Bank says Africa at core of strategy as earnings rise’; ‘Positive outlook for African growth’; ‘Robust growth woos local firms to Africa’; ‘Africa growth to continue, bank predicts’. These recent headers just reiterate that no business can escape the growing significance of Africa as a market.
It is with these facts and figures in mind, and enormous optimism for the future growth of business on the African continent, that we have launched Food Manufacturing Africa– Africa’s journal for the food and beverage industry. This publication is the industry mouthpiece in Africa offering incisive and authoritative reports on all aspects of the process, from raw material sourcing, to manufacturing and packing, right down to the distribution and marketing of finished goods.