Africa’s economy is on the take off. Indeed, six of ten world’s fastest growing economies are in Africa.
If this indicator is anything to go by, then one cannot help but realize that the continent, formerly referred to as the Dark Continent, is shaping up, and gearing for profound economic success. And for this growth to be realized, several industries are already taking center stage and appearing to champion the grand match to economic liberty. These include the auto industry, the agribusiness and the technology.
The auto industry
The car manufacturing, assemblage and marketing industry is already making strong strides in Africa. Major multinationals dealing in this industry have already set up plants in Africa, and the contest seems far from over.
First, there was the need to set up assembly plants in African cities so as to supply the African market. This happened from the early 80s to 90s, where parts would be shipped from abroad and assembled here. This then ushered the era of manufacturing plants which started from the advent of the 2000s and the trend still grows.
With increased competition, first from the usual suspects of the industry, then later added by the new entrants, there was the need to increase the capacity of these plants. New players such as FOTON and Cherry rose to challenge the likes of Toyota and Nissan in terms of presence in Africa.
As all this was taking root, the business of second hand cars and car parts was thriving in the background. Used vehicle imports doubled within the last decade, with pricing and the poor economic power of Africans being the reasons appended to explain this.
Importation of used vehicles and the parts thereof has continued to increase, and with a growing population in Africa, and a huge proportion of the population advancing towards middle class status, this is only expected to increase.
The practice of farming as a business is the other frontier that will work the development and economic prosperity miracle. A while back, Afroautos focused on an emerging class of African youths who have taken to farming and were making adequate cash from such ventures, with some even quitting formal employment to engage in agribusiness.
The sector, apparently, is paying handsomely, and it indicates the opportunities that exist and that are of value as far as the African economy is concerned.
Technology is the leading enabler of business, innovation and communication. The shift towards a cashless society has been witnessed in several African economies, as well as cutting edge technological inventions. Investment in ICT has been encouraged and prioritized by many African governments, as they seek to reap the returns in terms of iGDP.
Going forward, these are the industries that are expected to contribute the most in advancing the African economy growth.