Africa achieved impressive economic growth over the past 15 years with the average gross real domestic product (GDP) rising to a stellar 5% in the past decade. Africa’s growth is however adversely affected by headwinds from weaknesses in the global economy and falling resource revenues, but is supported by domestic demand, improved supply conditions and substantial external financial flows.
Africa is the continent with the fastest-growing population in the world. From 2000 to 2015, population numbers increased by more than 370 million from 814 million to almost 1.2 billion. According to United Nations projections the population will rise to almost 1.7 billion in 2030.
African cities are increasingly relevant consumer markets. The most important ones will be Cairo, Cape Town, Johannesburg, Lagos and Luanda. A recent surge in infrastructure investment indicates that states are investing in transport corridors to connect urban clusters, leading to deeper market integration through reduced transport and trade costs. An ever-increasing number of African companies find their way to the stock market. Since 2010 over USD 40 billion was raised in African capital markets with Johannesburg, Cairo and Lagos topping the charts. Although progress is hampered by inequality, urban poverty and exclusion, Africa’s prosperity outlook is better than ever.
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