CAPE TOWN, (Xinhua) --
Africa will become the world’s next big growth
market, akin to the Asian boom, according to a report available
here on Tuesday.
geographies are seeing incremental growth, global companies that
get in early and join the African champions shaping the right
strategies, can sustain double-digit profit growth over the next
few decades, says the report compiled by McKinsey, a management
The report draws the
conclusions from a survey of 3,000 McKinsey client engagements,
in-depth proprietary research and interviews with 40 of Africa’s
most prominent business and development leaders.
examples of African businesses that have translated
opportunities into enduring business value, the report reveals
how companies can better understand the African market and seize
the opportunities for building profitable, sustainable
Africa has a
fast-growing, rapidly urbanizing population with big unmet
needs, meaning that there is a trillion-dollar opportunity to
industrialize Africa, to meet rising domestic demand and create
a bridgehead in global export markets, the report says.
In addition, there
has been a big push by governments and the private sector to
close infrastructure gaps, according to the report.
The report points to
a continued resource abundance in agriculture, mining, and oil
and gas, with innovation and investment in these sectors
unlocking new production on the continent.
The rapid adoption
of mobile and digital technologies could leapfrog Africa past
many obstacles to growth, says the report.
“With over 400
African companies earning annual revenues of 1 billion U.S.
dollars or more, we can identify what works,” the report says.
successful businesses are often African companies, but many are
entrepreneurial firms with Western, Indian, or Chinese founders,
according to the report.
The report points
out that building a successful business in Africa requires a
long-term approach and four essential practices: mapping an
Africa strategy, innovating business models, building resilience
for the long term, and unleashing talent.
“At the heart of
these four imperatives is a commitment to doing well by doing
good,” said Acha Leke, senior partner and chairman of McKinsey’s
Africa Office and co-author of the report.