With a current population of 1.2 billion, Africa is projected to double its population over the next 30 years, making the continent an exception in a world of slowing population growth. Moreover, it will soon be the fastest-urbanizing region in the world.
Africa already has as many cities with more than one million inhabitants as North America does, and more than 80 percent of its population growth over the next two decades will occur in cities.
The income per capita of Africa’s cities is more than double the continental average, making them attractive markets for many businesses.
Images and Data source: McKinsey & Company
As in any market, deciding where and how to compete is critical. Companies with exposure to high-growth cities, countries, and regions improve their odds.
Likewise, companies that ride strong industry trends, such as rapid adoption of mobile and digital technology, have much better odds of outperforming.
Sometimes those are “trends with a twist,” such as Africa’s large unserved markets or infrastructure gaps: to benefit from such trends, companies need the imagination to see unmet demand or unsolved problems as opportunities. (McKinsey & Company)