{UAH} The Fastest Growing Industries in the Booming African Economy

https://www.africanexponent.com/post/7200-the-fastest-growing-industries-in-the-booming-african-economy

Africa has a serious population problem. Populations in most African
countries are getting out of hand while remedies are just not coming
around fast enough. But behind all the noise about this issue, it may
be hard to notice the strides in business and technology that Africa
is making. It's moving towards a knowledge-based economy, with a focus
on technology, financial and other e-commerce services. Certain
industries are taking advantage of five unique opportunities that have
emerged in Africa:

1. Industrialization

As Africa substitutes its imports and meets its growing local demand,
it's estimated that African industries have the opportunity to double
production to nearly $1 trillion within a decade. It's even likely
that the region snatches away the title of the world's greatest
manufacturing centre from China.

2. Focus on Agriculture and Resource Wealth

Africa has always had an abundance of both agricultural and mineral
resources. It's highly likely that in the coming years, innovations
and investments drive the continent towards meeting its huge unmet
demand for energy.

3. Infrastructure

Though 600 million Africans still lack access to the electricity grid,
the annual infrastructure investment has doubled to around $80
billion. This is a huge incentive to help solve the continent's
infrastructure challenges.

4. Digital and Mobile Access

Africa has more than 120 million active mobile money accounts, which
account for more than 50% of the global total. Additionally, mobile
traffic data is expected to increase sevenfold by 2022 as compared to
a few years ago, paving the path for video streaming, mobile slots,
and other app-based services.

5. Growing and Urbanizing Population

It's estimated that a big part of Africa's population growth in the
coming decades will take place in cities. This fast-growing,
urbanizing population will have several unmet needs like food,
education, healthcare, pharmaceuticals, beverages, and more.

These massive opportunities will naturally attract major growth in
several industries. But some industries are poised to grow much faster
due to these opportunities than others.

Agriculture

As of now, farming is the most important part of the African economy,
with estimates suggesting that more than 8.5 million people are
directly or indirectly dependent on agriculture for their employment
and income.

Governments in the region are supporting programmes to promote
commercially oriented small-scale farming. Other key industries within
this sector that get a lot of attention are agro-processing,
freshwater aquaculture and mariculture, and various types of meats,
nuts, herbs, and fruit.

Manufacturing

As countries in the world move towards cheaper manufacturing, Africa
is set to take advantage of the world's and its own burgeoning
demands. In fact, the continent has already developed a diversified
manufacturing base and has shown its resilience and potential to
compete in the global economy.

Key industries in this sector include automotive, chemicals,
information and communication technology, agro-processing,
electronics, clothing, textiles, and footwear. It also has the
production capacity for radio, television and communication equipment,
wood products, paper, and petroleum and plastic products.

Tourism

Africa has recognized tourism as an extremely profitable industry
among others. It has registered immense growth to the point that it is
now the second fastest-growing tourism industry in the world, only
behind the Asia Pacific region.

According to a report by the World Travel and Tourism Council (WTTC),
the tourism industry in South Africa directly employs more people than
the automotive manufacturing, mining, chemical manufacturing, and
communications services sectors. Africa's tourism is only expected to
grow thanks to its magnificent scenic beauty, sunny climate, rich
biodiversity, cultural diversity, and a reputation for delivering
value for money experiences.

Finance Services

Despite facing a recession recently, South Africa has come out in a
pretty solid position. Many domestic and foreign institutions are
popping up throughout the continent that is providing a wide range of
services from commercial and retail to merchant banking, lending, and
investments.

Countries in the region are taking several measures to strengthen
their financial foundations. South Africa has developed a regulated
banking system with a Central Bank, some large financially strong
banks, and several smaller banks. Nigeria, on the other hand,
consolidated 89 banks to 25 banks to unlock it's sector's potential.

Apparel and Retail

Textile and Apparel is proving to be a large source of tax revenue
among the African countries. The industry is also a significant
employer and export sector. Additionally, organizations like the
African Growth and Opportunity Act (AGOA) are creating opportunities
within the textile and apparel industry.

Due to the growing youth demographic in Africa, retail is guaranteed
to become a long-term growth parameter in the region. This affluent
and important sector includes textiles, clothes, hardware, household
goods, general stores, pharmaceuticals, and food and drinks.

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