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THESIS

Africa by 2050

Africa’s population to grow to 2,5bn

Source: Mercer, Mida Advisors, Standard Bank

Africa by 2050

One third of world’s population will be African

Source: Mercer, Mida Advisors, Standard Bank

Africa by 2050

Consumer expenditure of US$2,5 trn annually by 2030

Source: Mercer, Mida Advisors, Standard Bank

Africa by 2050

60% of Africa’s population will be urban based

Source: Mercer, Mida Advisors, Standard Bank

AfriFund Investments Thesis

Key trends driving Africa’s attractiveness as an Investment destination

1. Rapid Population Growth

Larger younger population - 50% under 20 years old.

Working age population of 1,5bn by 2050.

Growing and maturing middle class.

2. Increased Urbanization

Increasing urbanization driving economies of scale and infrastructure spend.

3. Leap Frogging Through Technology

Continent has embraced technology including mobile phones.

Internet adoption has risen sharply over the last decade.

Half of global mobile transactions in Africa.

4. Deepening Financial Sector

Move from cash based societies with account penetration doubling.

African banking revenues is forecasted to grow from US$51bn in 2012 to US$129 bn by 2022.

Unbanked population still high but Africa leads in mobile money with growth of 890% in last decade.

Africa's Growth has Remained Robust

No Data Found

Source: UN; Standard Bank Research

Share of Population Growth %

No Data Found

Source: UN; Standard Bank Research

INFRASTRUCTURE INVESTMENT GAPS

  • Adoption of technology will become the key catalyst for economic and social
    development of the continent.

 

  • The internet economy will proliferate and become a critical component of continent’s GDP.

 

  • Continental initiatives such as AFCFTA could be a catalyst to create an additional US$3trn in value.

 

  • Smart phone penetration is expected to increase from 39% to 60% which will further drive internet usage. The increased use of mobile money is a contributing factor to the expected growth of smart phone penetration.

 

  • Internet users have increased by 260% over the last decade, however internet penetration is still low at 25% compared to the developing world average of 47%.

 

  • Africa accounts for only 2% of global bandwidth usage compared to a 17% share of global population.

 

  • Compelling investment opportunities in telecommunications, media and technology exists on the continent.

FOOD AND AGRO-PROCESSING

  • The agricultural economy employs 65% to 70% of Africa’s labor force and typically accounts for 30% to 40% of GDP.

 

  • Africa has the largest share by far of land available for agriculture, approximately 45% of the global total.
    Under-utilized water resources and lower labor costs are competitive advantages.

 

  • Africa could be a key player in providing food security to the global population if advantages are harnessed.

 

  • Africa’s share of global food production has however been on the decline. Of the 183 million hectares of cultivated
    land in Sub-Saharan Africa (SSA), 95% is rain-fed and less than 5% benefits from agricultural water management practice.

 

  • Use of modern inputs such as fertilizers and agri-technology to enhance crop yields lag behind other regions such
    as Asia and Latin America.

 

  • SSA is undergoing rapid urbanization with a projected US$600 bn per annum food market forecasted by 2030.
    Total food market of US$1 trillion per annum.

INPUTS

  • Seeds
  • Crop Protection
  • Fertiliser & Chemicals
  • Agri-Tech
  • Machinery & Equipment
  • Animal Genetics
  • Feed
  • Energy

PRODUCTION

  • Land
  • Crop Production
  • Specialty Agri
  • Livestock
  • Aquaculture

HARVEST

  • Equipment & Machinery
  • Agri-Infrastructure
  • Storage
  • Cold Storage
  • Processing
  • Packaging

LOGISTICS & STORAGE

  • Transport
  • Cold Storage
  • Logistics (Port facilities)
  • Information
  • Technology
  • Exporters
  • Agri-Innovation
  • Agri-Fintech

FOOD PREPARATION

  • Product Design
  • Food Processing
  • Food Safety
  • Packaging
  • Specialty Products
  • Food Ingredients
  • Private Label
  • Production
  • Processing Technology

RETAILERS

  • Food Retailers
  • Food Service
  • Food Safety
  • Exporters
  • Cold Storage
  • Warehousing
  • Logistics
  • Branded Food
  • Private Label

CONSUMER

  • Urban
  • Rural
  • SME
  • Industrial
  • Export
  • Specialty