Africa by the Numbers        Business Statistics from Africa
Introduction•   By no means a detailed approach•   A broad sweeping and high-level look•   I’m not an economist •   But I...
A new narrative for Africa
It’s a unique time for AfricaSource: The Economist http://econ.st/O20XFk
What happened? Or What’s HAPPENING!?Source: E&Y Africa Attractiveness Survey - http://bit.ly/IrTern
Fast &slow movers10 fastest growing African                         10 slowest growing Africancountries 2011              ...
Compared to the rest of the world•Africa’s GDP is expected togrow by more than 5% in2012/2013Country      2012 GDP     GDP...
Commodity boom…• Africa has benefited and will continue to benefit  from increasing global demand for commodities
But not just natural resources…Source: McKinsey Global Institute ‘Lions on the move’ report http://bit.ly/QgQpOq
A lot of investment•Africa is a great place forinvestment at the moment•According to MGI’s 2010‘Lions on the movereport’, ...
Africans are investing in Africa!Source: E&Y Africa Attractiveness Survey - http://bit.ly/IrTern
Africa today and tomorrowAfrica today                                       Africa’s future• Africas GDP in 2008 - $1.6   ...
Changing perception
Changing perception• As per Diageo-Africapractice 2009 survey on  media effect on investment in Africa:     • 90% of inter...
Best places to do business in AfricaWorld Bank, IFC Ease of Doing Business Rankings SS-Afirca – http://doingbusiness.org
The Big 3:1. Infrastructure2. Commodities & resources3. Consumer
1. Infrastructure• Currently total spend on infrastructure across the  continent is $45B p.a.• AfDB estimates required $90...
1. Infrastructure             Roads                      PowerRed = missing links   Source: Prof. MthuliNcube ‘Myths & Rea...
2. Commodities & Resources• Global demand for commodities rising• China in particular:  – Africa’s largest trading partner...
2. Commodities & Resources• Agriculture is big• Agriculture employs 60% of Africans• Africa has 60% of the world’s unculti...
2. Commodities & ResourcesSource: IndexMundi
2. Commodities & Resources                             Source: IndexMundi
3. ConsumerSource: PricewaterhouseCooper - http://www.knowledgeconcierge.com/africa12
3. Consumer• From 2005 to 2008, consumer spending across the  continent increased at a compound annual rate of  16%• Estim...
Our challenge
Our challengeSource: Africa: Pathways to Inclusive and Sustainable Development, Prof.MthuliNcubehttp://bit.ly/S4KQr0
Our challengeKenya population 2010 and 2050
The solution?• Government/public sector can’t move fast  enough, scale far enough fast enough• The entrepreneur is the sol...
Resources•    http://www.mckinsey.com/Insights/MGI/Research/Productivity_Competitiveness_and_Growth/Lions_on_the_move•    ...
Thank youWill MutuaFounder Afrinnovator (http://afrinnovator.com)Co-author ‘Innovative Africa: The new face of Africa’ (ht...
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Africa by the Numbers: Business Statistics from Africa

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Africa by the Numbers: Business Statistics from Africa

  1. 1. Africa by the Numbers Business Statistics from Africa
  2. 2. Introduction• By no means a detailed approach• A broad sweeping and high-level look• I’m not an economist • But I have a great interest in the matters concerning my continent & her future
  3. 3. A new narrative for Africa
  4. 4. It’s a unique time for AfricaSource: The Economist http://econ.st/O20XFk
  5. 5. What happened? Or What’s HAPPENING!?Source: E&Y Africa Attractiveness Survey - http://bit.ly/IrTern
  6. 6. Fast &slow movers10 fastest growing African 10 slowest growing Africancountries 2011 countries 20111. Ghana 12% 1. Libya -19%2. Ethiopia 10% 2. Cote d’Ivoire -7.3%3. DRC 8.4% 3. Benin -2.5%4. Zimbabwe 7.8% 4. Madagascar 0.6%5. Mozambique 7.7% 5. Tunisia 1.1%6. Angola 7.3% 6. Egypt 1.6%7. Liberia 7.3% 7. Swaziland 1.9%8. Nigeria 6.9% 8. Comoros 2.5%9. Botswana 6.9% 9. Lesotho 2.9%10. Tanzania 6.9% 10. South Africa 3.6%Source: Africa in Today’s Financial Markets, Prof. MthuliNcubehttp://slidesha.re/U4SD8V
  7. 7. Compared to the rest of the world•Africa’s GDP is expected togrow by more than 5% in2012/2013Country 2012 GDP GDP Forecast growthNiger $7.38B 15.4%Angola $1.32B 10.49%Liberia $1.32B 10.496%Ethiopia $32.3B 8.02%Mozambi $12.9B 7.80%que GDP growth (annual %) Source: World BankZambia $21.8B 7.38% Open Data http://bit.ly/Plz6gqSource: Economy Watch, 12 FastestGrowing Economies for 2012http://bit.ly/PlAT5d
  8. 8. Commodity boom…• Africa has benefited and will continue to benefit from increasing global demand for commodities
  9. 9. But not just natural resources…Source: McKinsey Global Institute ‘Lions on the move’ report http://bit.ly/QgQpOq
  10. 10. A lot of investment•Africa is a great place forinvestment at the moment•According to MGI’s 2010‘Lions on the movereport’, the rate of return onforeign investments in Africawas higher than any otherdeveloping region•Not only has FDI grown but adiversity of projects/sectorsbeing invested inSource: E&Y Africa Attractiveness Survey - http://bit.ly/IrTern
  11. 11. Africans are investing in Africa!Source: E&Y Africa Attractiveness Survey - http://bit.ly/IrTern
  12. 12. Africa today and tomorrowAfrica today Africa’s future• Africas GDP in 2008 - $1.6 • Africas GDP in 2020 - $2.6 trillion trillion• Africas combined consumer spending in 2008 - $860billion • Africas consumer spending• 316 new mobile phone 2020 - $1.4 trillion subscribers since 2000 • 1.1 billion Africans of working• 60% of the worlds age by 2040 uncultivated arable land • 128 million households with• 52 African cities have a population > 1M discretionary income in 2020• 20 African companies with • 50% of Africans will be living in revenues at least $3B cities by 2030Source: MGI ‘Lions on the move’ http://bit.ly/UfvHja
  13. 13. Changing perception
  14. 14. Changing perception• As per Diageo-Africapractice 2009 survey on media effect on investment in Africa: • 90% of interviewees noted an improvement in media coverage about & from Africa in the previous 5 years • 83% cited improvement in quantity of both international and local media • 61% noted significant improvement in quality • 54% cited significant improvement in frequency and breadth
  15. 15. Best places to do business in AfricaWorld Bank, IFC Ease of Doing Business Rankings SS-Afirca – http://doingbusiness.org
  16. 16. The Big 3:1. Infrastructure2. Commodities & resources3. Consumer
  17. 17. 1. Infrastructure• Currently total spend on infrastructure across the continent is $45B p.a.• AfDB estimates required $90B to $100B p.a• Power, transportation (roads, rail, ports, etc), hospitals, schools, telecom munications
  18. 18. 1. Infrastructure Roads PowerRed = missing links Source: Prof. MthuliNcube ‘Myths & Realities in Africa’s New Development’ http://slidesha.re/RkNALI
  19. 19. 2. Commodities & Resources• Global demand for commodities rising• China in particular: – Africa’s largest trading partner (from $6.5B in 2000 to $166B Sino-African trade volume in 2011! ) – Voracious appetite for resources e.g. in 2009 China consumed 1.508B tonnes of coal &1.537B tonnes of iron ore – China’s demands for natural resources far surpass her capacity to produce the same – Africa is well poised
  20. 20. 2. Commodities & Resources• Agriculture is big• Agriculture employs 60% of Africans• Africa has 60% of the world’s uncultivated arable land• Food security is already a concern and will be a major concern in the future
  21. 21. 2. Commodities & ResourcesSource: IndexMundi
  22. 22. 2. Commodities & Resources Source: IndexMundi
  23. 23. 3. ConsumerSource: PricewaterhouseCooper - http://www.knowledgeconcierge.com/africa12
  24. 24. 3. Consumer• From 2005 to 2008, consumer spending across the continent increased at a compound annual rate of 16%• Estimated 128 million households with discretionary income by end of decade• More than half of African households will have discretionary spending power by 2020• Africa’s top 18 cities will have a combined spending power of $1.3 trillion by 2030• 221 million basic-needs consumers will enter the market by 2015Source: McKinsey http://bit.ly/QgQpOq&http://bit.ly/S4awmp
  25. 25. Our challenge
  26. 26. Our challengeSource: Africa: Pathways to Inclusive and Sustainable Development, Prof.MthuliNcubehttp://bit.ly/S4KQr0
  27. 27. Our challengeKenya population 2010 and 2050
  28. 28. The solution?• Government/public sector can’t move fast enough, scale far enough fast enough• The entrepreneur is the solution• Entrepreneurship Culture + Innovation Culture = Startup Culture – [SC = EC + IC]• Private sector has the potential to create jobs at scale• Kenya’s future, Africa’s future is in our hands• Patriotic Entrepreneurship – You owe it to your yourself, your family, your nation & your continent, even the world to succeed at your business
  29. 29. Resources• http://www.mckinsey.com/Insights/MGI/Research/Productivity_Competitiveness_and_Growth/Lions_on_the_move• http://www.ey.com/ZA/en/Issues/Business-environment/2012-Africa-attractiveness-survey• http://www.slideshare.net/ProfessorMthuliNcube/danida-development-days-prof-mthuli-ncube-keynote-address-2-may-in- copenhagen• http://www.doingbusiness.org/rankings• http://www.slideshare.net/ProfessorMthuliNcube/africa-in-todays-financial-markets• http://www.slideshare.net/Zia505/media-investment-in-africa• http://www.economist.com/node/18989203• http://www.knowledgeconcierge.com/africa12• http://blogs.worldbank.org/africacan/can-rapid-population-growth-be-good-for-economic-development• http://www.cgdev.org/content/publications/detail/1421340/• https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sect or_2602• http://www.chinasourcingblog.org/The%20China%20Analyst%20-%20August%202010.pdf• http://www.howwemadeitinafrica.com/infrastructure-resources-and-consumer-demand-%E2%80%93-africas-three-main- opportunities/18098• http://www.indexmundi.com/• http://www.irishaid.gov.ie/Uploads/Mthuli%20Ncube%20presentation.pdf• http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Working%20Paper%20%20No%20123%20%20PDF% 20%20.pdf
  30. 30. Thank youWill MutuaFounder Afrinnovator (http://afrinnovator.com)Co-author ‘Innovative Africa: The new face of Africa’ (http://book.afrinnovator.com)http://twitter.com/afrinnovatorhttp://facebook.com/afrinnovatorinfo@afrinnovator.com

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