Top 5 reasons why business is uniting Africa
African business is integrating Africa—economically and otherwise. It has been a long time coming, and plenty of hurdles remain, but the economic integration of the continent, which many see as key to its continued development, is manifest. Driving it are indigenous entrepreneurs and fast-growing African companies, as well as multinational corporations, said a new analysis by the prestigious Boston Consulting Group.
So why is international business the most significant factor in integrating Africa?
1. between 2006-2007 and 2015-2016, average annual African foreign direct investment—defined as money African companies invested in African countries—more than doubled from $3.7 billion to $10 billion. This was only possible because the top 30 African companies now have operations in 16 African countries, up from an average of just 8 in 2008.
2. This progress has come despite Africa’s many logistical challenges. The most significant problem in this regard has been poor connectivity and a lack of proper road networks within and between several African countries. This obstacle is only conquerable because of substantial business interests, not tourism or politics.
Top African companies have doubled their international operations in the last ten years
3. on January, 23 African countries launched the single African air transport market aimed at boosting connectivity and reducing the cost of travel across the continent. The main reason for the new open market was lobbying of airline companies, as well as multinationals active in several African countries.
4. African financial institutions are championing trade and expansion, the glue of economic integration. For example, three major Moroccan banks had expanded their operations from 3 countries in 2005 to 14 countries by 2016
5. Telecom operators and media companies are doing their part to advance pan-African connectivity and communications. The West Africa Cable System, an alliance of 12 operators, has connected 11 African countries and Europe. A separate partnership of 20 operators has united 17 West African nations and Europe. As a result, internet penetration in Africa passed 30% in 2016.
You can read the full report here