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INVEST IN AFRICA

Africa’s Growth in Context

Why Africa will provide the growth going forward

Rising GDP

Africa is the second-fastest-growing region in the world. We believe that the rate of return on investment is higher than anywhere else in the world.

Huge Appetite

Africa is now in the age of consumerism with the prediction of being the world‘s leading consumer market by 2050.

Doing business in Africa is now easier

Africa is now home to more international private firms due to the increasing adoption of seamless business policies, lowered corporate taxes, and strengthened regulatory and legal systems in some African countries.

Largest, youngest workforce

Africa is endowed with the worlds youngest population, which offers the continent a chance to reap a demographic dividend by using its young workforce to boost economic growth.

Rising technology

Africa has leapfrogged into the digital age, sustained by low internet rates, increasing mobile penetration connectivity and mobile apps, which are reshaping youth culture and creativity.

Traditional Liquidity Constraints

Even more so than ever, traditional financing from banks and finance institutions is difficult to come by. Banks are highly risk averse and thus proving difficult for borrowers to find an avenue of financing that is easy to come by. Alternative financiers in Africa are operating in a niche market where the opportunities for business are only going to increase.

Africa’s Growth in Context

Africa’s combined GDP has grown at significant CAGR since 1970.
gdp-graph

Source: McKinsey Global Institute.
** Extrapolated GDP figures based on ITC Technical Paper on Africa Trade Growth Estimates.

Africa Projected to Outperform Asia in GDP Growth.

gdp-graph2

Source: The Economist, IMF.

Large Opportunity Set

The current environment has generated multiple opportunities in Barak's sweet-spot.
  • Competition for land is likely to grow as food security becomes a priority for governments around the world.
  • Demand for agricultural products continues to grow significantly in local African markets and other emerging markets as populations grow and standards of living rise.
  • Many local commodity assets are undervalued because of the lack of pricing transparency.
  • General misconceptions regarding the level of political and economic risk for the continent as a whole.
  • Commodities are nearing price levels close to production parity, shifting focus to developing markets for future production.
  • Africa offers more than half of the world’s unused, agriculturally suitable land; by some estimates, only 45-50% of the continent’s potential arable land has been cultivated.
  • The World Bank’s projected industry size for agriculture and agribusiness in Sub Saharan African by 2030 is USD 1 trillion, compared to USD 313 billion in 2010.
  • Post-2008, large banks pulled out of the market as they viewed Africa as uniformly high-risk.
  • Fragmented markets of smaller growers and traders exist across multiple countries.
  • Many businesses are too small to access larger, traditional lenders, and if they do, they often encounter a higher cost of capital or cannot gain credit approval.