Business
Top five African countries to invest in 2023
Africa holds tremendous promise for investment. It is a continent that has huge economic potential and that offers many rewarding opportunities.
Africa’s natural resources make it an economic powerhouse. The Democratic Republic of the Congo has the world’s largest cobalt deposit, and cobalt is a key factor in producing the lithium-ion batteries used in smartphones, electric cars and many other devices. Africa also has huge supplies of gold, titanium, copper, diamonds, salt, phosphates and sulfur.
The continent also has one of the world’s fastest-growing consumer bases. Given the current urbanization rates across the continent, household consumption in Africa could rise as high as $2.5tn by the end of the current decade. So, whether you want to invest in the JSE top 40 or are looking at other forms of African investment, here are five countries on the continent of Africa that deserve your attention:
Nigeria
Nigeria boasts the third-highest level of foreign investment in Africa, and the nation is a key focus for experienced investors worldwide.
The GDP of Nigeria in the second quarter of 2022 showed growth of 3.54%, compared to a growth rate of 3.11% in the first quarter of 2022. Most of that growth did not come from the well-known oil sector, which contributed only 6.33%. Communication, data and services accounted for a tenth of the output, as did the combination of natural gas, agriculture and crude petroleum. Manufacturing and construction also continued to thrive way beyond the levels of most major global economies.
Egypt
Egypt is a geographical area with robust economic growth and streamlined business formation procedures. It is a very attractive location for foreign investors in several ways.
Egypt’s economy has indicated exceptional performance, resiliency and the ability to absorb downturns, with a substantial capacity to attract new capital. Investment in Egypt increased by 183% during the initial quarter of 2022, from $1.4bn in 2021 to $4.1bn.
Egypt’s plan for 2022/2023 calls for urban development sector investments totaling EGP 294.2bn. Specifically, investment is required in the sewage system, water treatment and construction sectors.
South Africa
The South African economy is the most developed and diverse in sub-Saharan Africa. Stable institutions strengthen the business climate, while an independent judicial system and legal sector honor the law, and a free press and well-developed financial system all contribute to this positive environment.
South Africa has attracted considerable US investment thanks to the perception that it is a relatively low-risk African location. In 2020, Google (US) invested roughly $140m and PepsiCo $1.5bn, while Ford announced a $1.6bn investment.
Overall, South Africa offers a unique combination of first-world financial infrastructure and a huge emerging market economy.
Ghana
Ghana is among the most stable democratic nations on the African continent, and political stability ensures long-term investment stability.
Ghana aims for 5.8% GDP growth, which is driven primarily by cocoa beans, petroleum products and mineral production. Ghana has the fastest-growing economy in Africa, and its rate of economic growth continues to outpace analysts’ forecasts.
During the first quarter of last year, overall GDP increased by 3.3%, although this was a decrease from the comparable period in 2021, when it grew by 3.6%. Fiscal pressures have remained elevated, but the government has begun discussions with the IMF on a potential program to address outstanding issues, and Ghana continues to be a location with enormous potential.
Algeria
Algeria’s foreign exchange reserves earned through oil and gas provide enormous opportunities for economic expansion. A development strategy that focuses on stronger, sustainable growth could generate more jobs, especially among young Algerians, and could alleviate the nation’s housing shortage.
Algeria’s GDP is projected to reach $165bn by the end of 2022, and $170bn by the end of 2023, which clearly shows the nation’s growth potential.
Algeria’s economy is dominated by the export of petroleum and natural gas, which make a contribution worth roughly one-third of the country’s GDP annually despite volatility in global prices. The national government is pushing ahead with diversifying the economy, beginning with the non-oil sector, while at the same time intensifying the structural transformation reforms to underpin future growth.
Summary
While Africa continues to face challenges, the strongest nations on the continent are demonstrating huge potential for further growth, and global investors looking to invest in a region with a rapidly growing consumer base should consider these five nations as starting points for African investment.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter
