Developing markets offer fantastic opportunity providing maximum value for our clients, investors and producers. Location is a key focus and important when making decisions. Emerging markets are estimated to provide long term growth trends
Africa Key Facts
- GDP +4.8% 2013
- By 2035, Africa will have a larger working age population than China
- Africa counts 1 billion people today forecasts estimate 2.4 billion by 2050
- 15 of the fastest growing cities in the world between 2015-2020 will be in Africa
- Twice as many mobiles as the US and the most advanced area for mobile money
- 40% of the population is under 15 years of age
- Africa is going to go from a $2 trillion economy today to a $29 trillion economy by 2050
Bottled water as a consumer product in Southern Africa constitutes only 1.3% of the total beverage industry (by volume) while Africa in total constitutes only 3.3% of the global bottled water market. Southern African consumption is already significantly lifestyle-related with bottled water viewed by consumers as not simply water, but as a natural and healthy alternative to other beverages including cold (cold drinks and sodas, fruit juices, energy drinks and alcoholic beverages) and hot (teas, coffees, chocolates).
Only five bottlers in South Africa and Namibia currently distribute nationally, with all the other bottling plants supplying relatively small local regions. Sale of bottled water are typically accounted for as follows :
- Retail outlets 51%
- Service Stations 18%
- Restaurants 17%
- Bulk Wholesalers 14%
However, private label bottling for boutique hotels, game lodges and other tourism venues is a new rapidly emerging market sector that promises of significant latent growth potential for innovative producers.
You need to ask the question :
Where will you find the fastest growing economies in the world this year?
Among the newly industrialised states of South East Asia, with their turbo charged export industries? Among the oil rich statelets of the Gulf? Or the liberalised, free market economies of Eastern Europe? Actually, it is none of those. The really rapid expansion right now is in Africa, and in sub Saharan Africa in particular. At $1.37 trillion, the consolidated African economy is larger than individual economies of Russia, India, Mexico and Korea
What are powering African growth are the same crucial factors that powered growth in Europe 150 years ago, North America 120 years ago and much of Asia in the decades after the Second World War. Industrialisation and free markets.
Africa is developing very fast. Global economic growth is forecast to accelerate moderately to 2.7% in 2017. Sub-Sahara Africa is on target to pick up modestly to 2.9% for 2017 lifted by robust private and public consumption, infrastructure investment, and a rebound in private investment. An analysis of World Bank projections of global growth for the years 2013-15 showed that, of the 20 fastest growing economies in the world, 11 were in Africa. Mozambique will average 8.3pc growth over those three years; Ghana 8.15pc and Angola 8pc. Those are the kind of growth rates that lift countries out of poverty very quickly. With a combined population size of 1 billion 70% under the age of 30 and an annual spend of $600 billion the continent is attractive for business.
Real incomes in Africa have doubled since 2000. A year is being added to average life expectancy every three years. Its been stated Africa is going to go from a $2 trillion economy today to a $29 trillion economy by 2050, which is bigger than Europe and America put together in today’s money. Life expectancy is going to go up by 13 years. The population’s going to double from 1bn to 2bn, so household incomes are going to go up sevenfold in the next 35 years.
By the 2020s, much of the developed world will have shrinking populations. So will China. Africa will be the only continent with lots of young people still entering the workforce, with a population that is set to double. So long as it keeps industrialising and opening up markets, it can keep growing. Very few countries have grown strongly with falling populations – and equally few have failed to grow with rising ones.
Over the next two decades, Africa should join the developed world. And it will have done it the same way as the rest of the world – by encouraging industrialisation, respecting property rights and allowing free markets to gradually lift countries out of poverty.