In this article, let me share the secrets of why business is attracting attention in Africa.
Table of Contents
- Demographic Perspective
- Demographic Perspective
- Area Perspective
- Climatic Perspective
Demographic Perspective
One of the reasons why Africa is attracting attention as a business opportunity is its large population.
According to the world population estimates released by the United Nations on November 11, the population of East and Southeast Asia, including China, which has achieved economic development, is expected to begin declining in the mid-2030s.
Africa is expected to emerge as a major force in the world economy, with 30% of the world’s population by 2050, if its abundant young population can be utilized as a labor force.
Demographic Perspective
Africa’s attention as a business opportunity stems not only from its large population, but also from its demographic structure.
According to a 2013 study by the Brookings Institution, a Washington, D.C.-based think tank, young people (ages 15-24) make up about 37% of the total labor force in Africa.
Kenya’s Secretary of Industrialization and Enterprise Development, Adan Mohamed, described the benefits to his country of having more youth entrepreneurs: “Success breeds success.
Success breeds success. As more entrepreneurs achieve success, more will join them. Technology-based inventions are another factor that attracts entrepreneurs. There is a shift in thinking, and many young people are beginning to think of themselves as employers. In many African countries, governments are creating opportunities for access to finance and markets.
Area Perspective
Africa covers an area of 30,370,000 km², or 22% of the world.
It stretches 7,400 km from east to west and 8,000 km from north to south.
The distance from Tokyo to Seattle, USA is 7,987 km. The distance from Tokyo to Dubai in the United Arab Emirates is 7935 km.
Furthermore, the distance from Tokyo to Mumbai, India is 6738 km. From Tokyo to Moscow is 7492 km. Africa’s east-west distance of 7,400 km is equivalent to these two distances.
The area of the African continent is 10 times the size of India. It is 80 times the size of Japan. It is so large that the United States, China, India, Europe, Mexico, and Japan could all fit inside.
The large size of the continent means that there is a lot of land to challenge and a lot of room for population influx from overseas, so there are many places where businesses can take on challenges.
However, it also means that, even if we say “do business in Africa,” it is missing the point to single out Africa within the large land area that is Africa.
A Climatic Perspective
As described in “Super Accelerated Economy Africa,” the climate in Kenya and Rwanda in eastern Africa is so pleasant that it is said to be like the African Karuizawa 365 days a year.
The temperature is about 25 degrees Celsius in the summer, making it a climate conducive to industrial development as well as a comfortable place to live.
Although you may have an image of deserts and tropics when you think of Africa, people actually live in about one-third of the area of Africa, so the places where you live may be more comfortable than in Japan.
Let me share more details about business opportunity in Africa in the next article.