Akingbade Akinfenwa, Managing Partner – Global Synergy, LLC and contribution from Jared Pentz, Member of the World Affairs Council of Philadelphia, and the United Nations Organization.

FIVE REASONS AFRICA IS TOO GREAT TO IGNORE

Africa’s exponential economic and demographic growth are the basic reasons for the high level of endearment

to the continent. Read through the five reasons below and see why “This is Africa’s time!”

Akingbade Akinfenwa, Managing Partner – Global Synergy, LLC and contribution from Jared Pentz, Member of the World Affairs Council of Philadelphia, and the United Nations Organization.

FIVE REASONS AFRICA IS TOO GREAT TO IGNORE

Africa’s exponential economic and demographic growth are the basic reasons for the high level of endearment

to the continent. Read through the five reasons below and see why “This is Africa’s time!”

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2,500,000,000

3,000,000,000

3,500,000,000

Today 2100

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100

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1990 2011

According to the United Nations Population Division, Africa will most likely have the largest increase in demographics over the next 100 years! While these are predictions/projections, they have a profound consequence for Africa’s development. Look briefly at the rest of the world: Asia, including India, will plateau in the next 50 years followed by a gradual decline.

Europe will continue to shrink due to an aging population. South America forecasts increase in population albeit slowly; until about 2050 when it also begins to age. North America will continue to sustain its population demographics, but Africa will surge.

The current "poor" countries, consisting of many African countries, are likely to grow more rapidly starting with 663 million today to approximately 3 billion by 2100. Predictions estimate Africa will increase four fold, primarily sub-Saharan region, which will certainly boost the workforce; in addition to the workforce it will also increase the voting population which could help promote social and political change.

The key ingredient to the demographic boom in Africa has been the increases in the quality of life.

Decreasing child and maternal mortality, decreasing dependency rate, increasing average life span,

and a decrease in disease are all factors adding to the economic and demographic boom in Africa.

These factors will contribute to a larger and healthier workforce; one African has never experienced.

The World Health Organization's 2012 Global Health report details positive news for Africa. First,

there is a continent wide increase of about 5-15% in safe drinking water, which is still below the

global standard meaning, that number will increase. Second, disease and sickness in Africa has been

coming under control and the WHO expects to finally go on the offensive by 2015. During 1990-

2011, there has been a 40% reduction in child mortality and a decrease in maternal mortality from

800 per 100,000 to 475 per 100,000 which significantly adds to the population. Furthermore, the

average life span in Africa is set to increase by 50% according to the UN Population Division report;

thus a healthier more productive workforce. In the past this workforce has been plagued by the

dependency rate, essentially the number of people living off the government (under 15, over 65)

compared to the number of people in the workforce. Currently,. However, the average age in Africa

is very low, therefore as the under according to the UN report, the dependency rate is high at 80 to

100, meaning there are 100 workers for every 180 people15 age population matures the

dependency rate will drop dramatically.

40% reduction in child mortality and a decrease in maternal mortality from 800

per 100,000 to 475 per 100,000

African economic growth has been consistent from 2001 to 2013 averaging 5.2 % increase in gross domestic product (GDP). The

UN's African Pulse publication avers that economic growth is positive and activity among African countries is increasing. They project

the region that grew 4.9% in 2013 to grow by 5.3% in 2014 and 5.5% in 2015. These numbers come even when reducing poverty

in the region has been slow but with increased investment, poverty can be reduced at a quicker pace. Currently, the African Economic

Outlook, which published almost identical numbers as the UN, rates seven out of ten African countries as "fastest growing" status.

The fast growing economy plus a growing workforce, currently not even close to full potential, equals tons of business opportunities

coming to Africa.

The upcoming population boom of Africa could potentially be larger than Asia's similar boom, stemming from the improvements in the quality of life. Inevitably, leading Africa past Asia in terms of economic size and growth.

Akingbade Akinfenwa, Managing Partner – Global Synergy, LLC and contribution from Jared Pentz, Member of the World Affairs Council of Philadelphia, and the United Nations Organization.

FIVE REASONS AFRICA IS TOO GREAT TO IGNORE

Africa’s exponential economic and demographic growth are the basic reasons for the high level of endearment

to the continent. Read through the five reasons below and see why “This is Africa’s time!”

3.50%3.90%

4.50%5.00%

2013 2014 2015 2016

6%

21%

42%

31%

Oil Reserves Gold Platinum World's Arable Land

2001 to 2013 averaging 5.2 % increase

Across the board, a booming population, a healthier workforce, and increasing economic growth create several business

opportunities in Africa. The workforce alone is expected to quadruple by 2100 according to UN estimates, and sub-Saharan

Africa leads the way. States like Nigeria, whose workforce is projected to increase eight fold with a trillion dollar economy; will

shoot to the third most populated country in the world. According to UN projections, Tanzania whose population currently stands

at about 45 million will exceed 276 million by 2100. The Democratic Republic of the Congo (DRC) and Ethiopia have similar eye-

popping numbers 65.7 million, and 91.7 million people respectively. DRC, Tanzania and Ethiopia all need considerable investments

to make the most of all these future workers and create stability for the region by suppressing internal conflict.

The topic of competition in regards to Africa is twofold. One - Africa's workers will be more competitive since they will be a healthier

and more efficient workforce. Two - the longer business waits to promote and develop African business across its many sectors, the

more competition from other business it will encounter. This will lead to a rise in transaction costs to employers who come late to the

table. In the beginning, the main sector for business in Africa will be light manufacturing, due to low labor costs and the abundance

of natural resources. Africa has many resources that could be developed further to establish stability: here are some numbers

according to the Economic Report on Africa, 12% of oil reserves, 40% of gold, 80% platinum, and 60% of the world's arable land.

As in Asia, business needs to promote good governance and resource management to provide enough food, water, and electricity

in order to keep the chance of conflict low.

The business world should be

chomping at the bit to start

investment and expanding business

into Africa. It can be a win-win

situation for individual business and

building a prosperous Africa. Africa

has the extractive resources and the

human talent, but there are

challenges; strategic investment

opportunities could help reduce

poverty, reduce inequality, and

reduce conflict in Africa. Engage the

possibilities with Global Synergy’s

Global Expansion Techniques.