Sub-Saharan Africa market overview

(This market is covered by the Queensland Trade and Investment Commissioner – Europe)

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

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, economic growth is forecast at 3.5%. The two largest economies, Nigeria and South Africa account for over 63% of Sub-Saharan Africa’s total GDP.

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

There are significant long-term opportunities in the region for Queensland agribusiness capabilities.

For example, the east African coastal food bowl has access to abundant supplies of fresh water, and if overlaid onto Australia, would cover an area stretching from Townsville to Melbourne and Mt 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.

Akosombo Hydroelectric Power Station on the Volta River supplies with energy almost whole Ghana and half of Togo, West Africa.

Sub-Saharan Africa opportunities

CurrentMid termLong term

Current

METS and Mining
Agribusiness technology and services
Vocational education
Tertiary education

Mid term

Education and training
Innovative technology
Infrastructure and construction – particularly power, ports and rail

Long term

Agricultural services
Renewable energy
Oil and Gas ETS

Sector opportunities in Sub-Saharan Africa

Mining

Pipeline of mining investment across targeted Sub-Saharan African markets is in the billions.

Common issues include:

suitable infrastructure
water scarcity
high energy and operational costs
sustainability
safety

Companies with advanced technology and services with solutions should consider Sub-Saharan Africa.

Food and agribusiness

Sub-Saharan Africa is home to vast arable land and well placed to further scale up agricultural production and trade with appropriate infrastructure, regulations and water management.

There are opportunities for companies offering solutions for efficient use of water and other resources, and sustainable growth of agricultural and food production.

Education and training

Sub-Saharan Africa’s increasing youth and increasingly wealthy population will increase demand for access to quality education. This will create major challenges domestically for school education and for VET and Higher Education.

There is a strong demand for Sub-Saharan African companies and governments to provide industry with a highly-trained workforce.

Sub-Saharan Africa is looking for innovative and efficient techniques to bridge the skills gaps to increase productivity levels, safety standards and the efficiency.