Africa – The land of Opportunities by BDB India Private Limited

 



One-fifth of all land on Earth is located in Africa. Africa, which is widely recognised as the continent where the human species first emerged, was home to more than 965 million people in 2007. The population of the continent has changed significantly over time with the current population of 1.4 billion people. This population is equivalent to 16.72% of the total world population and they account for around 2.8% of global economic output. African habitats and landscapes have changed as a result of that population’s changing demographics. Although environmental change is not a recent phenomenon in Africa, it has become more rapid, as it has in many other parts of the world. Amid all the excitement is a wave of young idealistic, social entrepreneurs, coming back or completing their education and remaining in Africa, determined to help shape the future.

Africa, with 54 nations and a combined land area of 30 million km (twelve million square miles), Africa makes up 20% of the planet’s habitable landmass. The overall length of Africa’s coastlines is 41,184 kilometres (25,596 miles). The continent is divided into Northern, Eastern, Western, Southern and central Africa.

In the first two decades of the twenty-first century, Africa as a whole underwent a change with increased democracy, peace, economic growth and prosperity. The world had a new perspective on Africa and developed a keen interest in its development. China and India, two developing nations, took the initiative and influenced this attitude.

Few questions the size of the African continent and its resources, which have a combined land mass larger than that of India, China, the US, and Europe put together. However, only a few people up until recently recognised it as a market that is quickly expanding. Over the past ten years, the continent of Africa has had an economic growth of 5% annually on average.

There are numerous “Africas” with diverse economies, ranging from oil exporters like Nigeria, Angola, Libya, and Algeria to countries like Egypt, South Africa, and Morocco that already have economies that are more diversified and have GDP per capita of well over $2000. Many nations including Kenya, Tanzania, Ghana, and Cameroon, are in the process of shifting from agricultural to manufacturing and service economies.

Commodity prices have influenced Africa’s growth because the continent holds a third of the world’s mineral resources, 10% of the world’s oil reserves, and over 70% of the world’s diamond production. The dependence on a few important commodities, and consequently their global price, has caused a great deal of market uncertainty, particularly with regard to several of Africa’s currencies.

Several countries have been working hard to expand other economic sectors as part of an effort to diversify away from resource-based economies. To date, growth has been seen in manufacturing, services, and tourism in particular (although, whether from ebola, localised terrorism or national political change, growth from the latter source is evidently volatile).

 

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