Please see below selected recent intelligence about Africa. This is a synthesis of major recent developments at corporates, business schools, thinktanks, media, commentators, and other key influencers.
Please see below selected recent intelligence about Africa. Please contact Dominic Kelleher with any questions.
- Today, seven of the 10 fastest-growing economies in the world are in Africa and the continent is increasingly moving more into the global limelight as a promising investment destination - despite preconceived risks of investing in turbulent times. The World Economic Forum believes that a significant amount of the growth that is being experienced and enjoyed in key markets across Africa is as a direct result of governments being able to successfully implement far-reaching economic and political reforms, thus creating more conducive business and investment climates.
- New research from PwC projects that traditional assets under management (AuM) in 12 markets across Africa will rise to around $1,098 billion by 2020, from a 2008 total of $293 billion. The report, Africa Asset Management 2020, is an in-depth study which examines the asset management industry across 12 African countries which have financial markets of varying levels of development.
- Heads of state at an African Union (AU) summit in Johannesburg formally launched negotiations for a continental free-trade area. They set the target of 2017 for the agreement to be implemented. It is a highly ambitious goal in a hugely diverse continent. But Fatima Haram Acyl, AU commissioner for trade and industry, insisted that the initiative is not mere rhetoric. African leaders, she said, realise that improving trade is critical to tackling the continent’s problems of unemployment, poverty and underdevelopment. She added that Africa risks “missing the boat” as other regions push ahead with their own trade agreements.
- PwC's own Economics team launched its monthly Global Economy Watch for June. This month's issue focused on North Africa. It’s been almost five years since the beginning of the ‘Arab Spring’ which brought about significant change in North Africa and the wider region. With this milestone approaching, PwC economists have taken a look at the five largest North African economies – Egypt, Algeria, Morocco, Sudan and Tunisia – and highlighted some of the key points that businesses and policymakers should consider when thinking about North Africa Click here to read the full Global Economy Watch.
- Sub-Sahara Africa is primed for growth over the next 30 years with industry strength in mining, agriculture, oil production and a growing pool of young, educated people ready to enter the workforce. However, Deloitte warned that logistical bottlenecks, poor governance, rising unemployment, vulnerability to commodity price shocks and economic downturns in key trading partners will challenge the region’s economic growth.
- Deloitte Africa CEO Lwazi Bam joined the group’s global executive committee after Africa was deemed one of the firm’s 11 priority markets. The announcement follows the appointment of Punit Renjen as the new CEO of Deloitte Global "Mr Punit has a very deep understanding of the African markets and will continue Deloitte global’s investment in the African continent," Bam said. Punit advocates that our business should profit from doing good. He has already challenged all of us as leaders in our regions to ensure what we do as a business has a meaningful impact." Bam added that Deloitte Africa had been trying to better integrate its practices. "Our clients expect to be given similar services and to receive consulting of a high standard no matter which country they’re in."
- See What next for Nigeria’s economy?, by Andrew Nevin, Partner and Chief Economist at PwC Nigeria. In the months leading up to January 2015, the price of oil fell by 60% driven down largely by booming shale oil production, the drop in energy demands from emerging markets and the strengthening of the US dollar. By late-January of 2015, Brent Crude traded at around $50, hitting its lowest-levels since the global financial crisis in 2009. Prices however recovered to around $60 - 65 by the end of the first quarter of 2015 but this still represents a major adjustment from the $90 - 110 average price levels we’ve seen over the last five years.