West Africa stretches from the northern Gulf of Guinea region to the Sahara and has sixteen countries: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana , Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra-Leone and Togo.
Sub-Saharan Africa is the expanse of the African continent south of the Sahara, ecologically separated from the countries of the North by the harsh desert climate. It is made up of 48 states divided into four sub-regions.
Investors present who wish to renew their confidence
The most recent study carried out on the financing of African growth by the Havas Horizons group and published in late July 2018 under the title “Financing African growth by 2023: perception of international investors” revealed that 92% of international investors are optimistic and wish to renew their confidence for the next five years in the face of a promising economic outlook.
Also, out of 55 of the largest financial and banking institutions present in Africa (such as Sanofi, Société Générale, BNP Paribas etc.) around 63% of them reaffirm their desire to maintain or even increase their investments in Africa. The most popular sectors are energy, agriculture, financial services supported by innovations in new technologies, and mass distribution. The latter are associated with the transport and logistics sector. By 2022, Kenya, Côte d’Ivoire, Ethiopia, Nigeria, and Senegal will be the countries most coveted by investors, according to this poll.
Africa: 75% of turnover of French companies by 2025
The European consulting firm BearingPoint, in a study, indicated that the increase in Africa’s share of the turnover of French companies will be 75% by 2025. Africa represents 16% of the population global and should reach 25% in 2050, this explosion of population growth coupled with increasing urbanization, reveals the need for long-term investments. These data demonstrate the interest of investors in new opportunities.
The strongest economic growth after Asia
The economy of sub-Saharan Africa is highly dependent on commodity prices. Despite a drop observed between 2015 and 2016 linked to the fall in the prices of these raw materials, sub-Saharan economic growth remains the second highest after that of Asia. Thanks to organizations such as OHADA (Organization for the Harmonization in Africa of Business Law), regional governance is consolidated, thus promoting investment.
Foreign Direct Investments progress in Africa
According to the World Investment Report of June 12, 2018 by UNCTAD (United Nations Conference on Trade and Development), foreign direct investments (FDI) have increased by 11% in Africa, or 46 billion dollars. Several African countries are beneficiaries. In 2018, the top 5 is as follows:
Egypt is the African nation that receives the most FDI, at 6.8 billion dollars, down 7% compared to 2017.
South Africa which has seen its investment more than double compared to 2017 to a value of 5.3 billion dollars.
the Democratic Republic of Congo with 4.3 billion dollars.
Morocco ($ 3.6 billion).
Ethiopia ($ 3.3 billion).
Overall in 2018, sub-Saharan Africa received 32 billion dollars in FDI, an increase of 13% compared to 2017. North Africa (Egypt, Morocco) received FDI of a amount of 14 billion dollars, an increase of 7% over the previous year. In East Africa, foreign investment has remained constant at $ 9 billion. In West Africa, the overall amount of FDI fell by 15% to 9.6 billion due to the declining performance of Nigeria (-43% to two billion dollars) and Ghana (-8%, to three billion dollars).
Stable economic growth
The latest report from the African Development Bank (AfDB) titled ‘African Economic Outlook 2020’ revealed that Africa’s economic growth remained stable in 2019 at 3.4%. East Africa grew 5%, North Africa 4.1%, West Africa 3.7%, Central Africa 3.2% and Southern Africa 0.7%. In addition, the World Bank clarified that four of the five most dynamic economies in the world are African, they are the Ivory Coast, Ethiopia, Ghana and Rwanda.
West Africa among the top 10 countries to invest in Africa
The ninth edition of the ” Where to invest in Africa ” report, produced by the South African financial group Rand Merchant Bank (RMD) concerning the countries where investing would be a wise choice in 2020, reveals that Egypt still occupies the first place of the most attractive countries for investors. This position, which has been maintained for three years now, is favored by a large demographic market, a favorable business environment and a favorable industrialization policy implemented by the government. The second place is occupied by Morocco, South Africa now occupies the third place. In fourth place comes Kenya. The top 10 is completed successively by Rwanda, Ghana, Ivory Coast, Nigeria, Ethiopia and Tunisia.
West Africa is therefore represented in the top 10 countries to invest in Africa, by Ghana, Ivory Coast and Nigeria. When do you want to get started?