Sub-Saharan African Cities’ USD$197 Billion Market: the New Investment Frontier for Multinationals

CAPE TOWN, South Africa–(BUSINESS WIRE)–#Africa–Global Market Research Company Euromonitor International released today
its new white paper: “Sub-Saharan African Cities of Opportunity:
Expanding Business Horizons Beyond South Africa.”

According to the white paper, Sub-Saharan African cities represent the
new frontier for multinational businesses. Richly gifted with natural
resources, Sub-Saharan Africa has profited from surging global raw
material demand. The region is seeing a growing proportion of foreign
direct investments into the manufacturing and services sectors, with
investment inflows amounting to US$41 billion in 2014. Furthermore,
Sub-Saharan Africa has a young expanding population – it surged by 31
percent to 957 million during 2005-2015, with a median age of 18.2 years
in 2015.

“Benefiting from favourable demographics and urbanisation, cities play a
vital role in Sub-Saharan Africa’s economic improvement,” comments
Christy Tawii, Senior Research Analyst at Euromonitor International.

In line with a booming economy and despite being the least urbanised
region in the world, Sub-Saharan Africa is projected to see its urban
population surge by 74 percent from 2015 to 2030, the fastest growth
globally. Between 2015 and 2030, 53 percent of the absolute growth of
the twenty-four Sub-Saharan African cities’ consumer expenditure will
come from Lagos, Johannesburg, Pretoria, Cape Town and Durban.

Despite the positive growth expected from these cities during the
forecast period, the white paper identifies threats to overcome. “No
matter the investment focus, companies must remember that Sub-Saharan
African cities evolve in an environment where hard and soft
infrastructure is still being formed and strengthened. Therefore,
explicitly devising strategic plans to deal with intensifying local
competition, lack of modern retailing outlets as well as logistics
bottlenecks are a must for overall success. In light of these
challenges, an investment with a longer-term perspective will enjoy high
returns,” concludes Tawii.

To download the free white paper, visit: http://go.euromonitor.com/Doing-Business-Beyond-South-Africa-White-Paper.html

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Contacts

Sibonginkosi Mlalazi
Communications Executive – Euromonitor
International
Tel: +27 21 524 3000
Sibonginkosi.Mlalazi@Euromonitor.com