Business Opportunities and Challenges in Africa

BUSINESS OPPORTUNITIES AND CHALLENGES IN AFRICA

Lois René Berman Sakina Balde

BUSINESS CHALLENGES AND OPPORTUNITIES IN AFRICA

Lois René Berman Research Manager, Middle East & Africa Sakina Balde Senior Research Analyst, Middle East and Africa

CONNECT WITH US

© EUROMONITOR INTERNATION A L 2 0 1 3

CONTENTS

1

INTRODUCTION

Robust GDP growth rates in Africa redefine the map of opportunities A boom in consumerism drives growth on the continent The retail sector is a good indicator of the boom in consumer spending

4

PACKAGED FOOD IN AFRICA

Africa, a net food importer Looking at the food value chain Modern retail increasing All roads lead to … the challenges of distribution

10 12

A BLANKET APPROACH WILL NOT WORK HOW CAN EUROMONITOR INTERNATIONAL HELP?

iv

© EU R O M O N I TO R I NTERNATI O NAL 2013

INTRODUCTION

Robust GDP growth rates in Africa redefine the map of opportunities

Some 10 years ago, The Economist ran a cover on Africa headlined “The Hopeless Continent”. While the Western world was described to offer infinite business opportunities, Africa was deemed to offer none. The global financial crisis has since then redefined the world map of opportunities. While the Western world is struggling to recover from financial crisis, posting sluggish GDP growth, seven of the 10 fastest-growing economies are African, including Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia and Nigeria. Africa is now the second fastest growing region in the world, with GDP growth across the 54 countries estimated at 6% in 2012, according to the International Monetary Fund (IMF). Previously seen as the ‘risky’ continent or only considered for its natural resources, the current high economic growth coupled with a much-improved business environment is now making Africa an increasingly attractive hub for international fast moving consumer goods (FMCG) companies. The emergence of a class of consumers driving the growth is one the main...