Africa: Top of the sectors and countries acclaimed by investors
Which sectors are promising and which are the most promising countries for innovation in Africa? To provide an answer to these questions, Havas Paris and the Institut Choiseul deliver the 4th edition of the Havas Horizon 2018 barometer, the result of a survey of more than 50 African and foreign investment organizations.
A study that results from the results of a survey of 50 major financial and banking institutions, African and foreign, present on the continent, including: BNP Paribas, Goldman Sachs, Natixis Investment, Rawbank, Rothschild & Co, Societe Generale , One2Five, African Guarantee Fund, Misr Bank, BMCE Capital, Casablanca Finance Authority Authority, Choiseul Africa Capital, etc.
Entitled “Financing Africa’s Growth to 2023: International Investor Perception,” the study that emerged from the investor survey raises doubts about the impacts of the African middle class and their potential for consumption. It also focuses on the effects of the demographic dividend as more and more Western leaders, driven by migratory flows, argue for a decline in birth rates in Africa.
From the outset, a figure from the Havas Horizons survey summarizes by itself the trust that investors have in the African continent for the period 2018-2023. Indeed, 92% of investors surveyed are optimistic about the continent’s economic outlook. The demographic dividend and the economic and social opportunities lent to digital in Africa are the drivers behind the interest of investors in Africa. 80% want to strengthen their investments by 2023 at continental level.
Investors argue that the three good reasons to invest in Africa are the emergence of the middle class (58%), the improvement of the business climate (49%) and the demographic dynamism (47%). As a result, they are 60% to consider strengthening their investments in Africa.
In terms of the most promising sectors, it is the financial sectors that are most prominent in Africa, according to the Havas Horizon survey. Thus, 23% of investors surveyed believe that Finatech’s sectors and financial services are buoyant sectors. With an average bankization rate that rarely reaches 15% in many African countries and insignificant insurance penetration rates, these sectors offer significant development opportunities at the continental level. Thus, the financial sector, combined with new technologies, is at the forefront of the continent’s transformation process and thus presents opportunities that attract more and more foreign investors.
Behind the Fintech, one finds the distribution (16%), “carried by the emergence of a middle class and the increase of the interior demand”. The sector is on the rise due in particular to the significant increase of a middle class and the rampant urbanization which arouse more and more the interest of the investors.
Finally, Energy, which ranked first in the previous study, dropped to 3rd place with 14% of investors’ intentions. The potential remains important knowing that it is on this one that rests all the stakes of economic development of the continent. The 600 million Africans deprived of electricity and a growing demand for electricity that should triple between 2010 and 2030, all coupled with the proven potential of renewable energy production (hydroelectric dams, wind, solar, geothermal, etc.). are opportunities for investment in the energy sector in Africa. It should be noted, however, that 38% of investors surveyed ranked the sector as the most buoyant in the previous Havas Horizons study.
Innovation and new technologies are considered promising in Africa by 98% of investors surveyed. Better, according to the survey, 76% of investors believe in the emergence of a typically African model of innovation. At this level, the champions on the continent are Kenya, South Africa, Rwanda, Morocco and Nigeria.
Lastly, concerning the countries in which it is necessary to invest, the respondents give priority to 5 countries: Côte d’Ivoire (63%), Kenya (61%), Nigeria (39%), Ghana (37%) and South Africa (34%). ). These countries are followed by Morocco, Senegal, Ethiopia, Egypt and Rwanda. We can clearly see the good position of West Africa with Côte d’Ivoire, Ghana, Nigeria and Senegal among the 10 most promising countries in the eyes of investors surveyed.