The Rise of Global Interest in Africa

Abstract

The world is now recognising that a new Africa is emerging. The predominant theme in the emerging narrative is no longer war, famine, and disease, but strong economic performance, abundance of resources, and better governance. Undeniably, resources have played an important role in this shift, but Africa is also becoming increasingly economically diverse. This is clearly reflected in an expanding consumer base that is fuelling growth in other sectors. Measurable improvements in governance and human development suggest that these changes are sustainable for the long term, backed by business friendly reforms and mature financial institutions. Moreover, foreign investment in Africa is showing strong growth and returns on investment in Africa, both foreign and domestic, are among the highest in the world. PwC stressed that for many global investors, Africa is no longer about war, famine, and poverty, but rather, about opportunities and growth. Some of the world’s fastest growing economies are in Africa and the continent offers the highest return on foreign direct investment among emerging markets.