Sub-Saharan Africa market overview

Sub-Saharan Africa comprises 46 countries and over 960 million people. The region has the world’s largest untapped natural resources and considerable capacity to provide a stable food supply globally. It is also predicted to have the world’s youngest population by 2050.

In the past 20 years, Sub-Saharan Africa has benefited from improved communication and globalisation, resulting in enhanced leadership and governance.

Economy

Despite a recent slowdown due to the sharp decline in global commodity prices, regional economic growth is forecast to pick up to 3.8% in 2019 according to the IMF.

There has been substantial progress in financial development, including mobile payments technology and the emergence of Pan-African banks. The IMF forecast that this financial development could add a further 1.5% to regional economic growth. The improved business environment in specific countries and favourable demographics can support growth drivers in the medium term.

Sub-Saharan Africa’s long-term growth will be driven by a combination of mineral, oil and gas and land resources and its unique demography.

Trade

The region offers significant long-term opportunities for Queensland agribusiness.

For example, the East African coastal food bowl has access to abundant supplies of fresh water, and, if overlaid on to Australia, would cover an area stretching from Townsville to Melbourne and Mount Isa to Adelaide.

Increasing international concerns over global food security are driving the development of African arable land and investment in agricultural infrastructure and associated industries, with significant investment from sovereign wealth funds via the Gulf Arab states.