Corporate Entry into Africa - A New Chapter: Jones Lang LaSalle (Report)

Table of Contents

  • Introduction
  • Who is growing in Africa?
  • Which sectors are growing in Africa?
  • The rise of manufacturing and business services in Africa
  • Where are companies growing in Africa?
  • A changing urban geography for FDI
  • An evolving urban hierarchy
  • Corporate presence – emergence of clusters
  • Talent and connectivity
  • Understanding risk and transparency
  • Real estate transparency
  • How do you grow successfully in Africa

Read the full report below.

Introduction

Africa has seen a surge of corporate interest and investment in recent years. Total FDI inflows into the region more than doubled since 2003 as international companies have sought to benefit from the sustained economic growth, rapid pace of urbanisation, emerging middle class and the myriad of other growth opportunities the African continent presents for international business.

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Corporate growth on the African continent has become the business of CEOs. President Obama’s 3 day Africa leaders’ summit in 2014 represented one of the latest in an increasing line of international summits, WEF sessions and top level business and government initiatives focused on boosting business growth and investment in the region. Africa’s growth is now firmly on the agenda at the highest level.

With continued economic volatility in many developed economies, and significant growth downgrades in many BRIC markets, Africa’s growth story has become even more compelling.

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With a number of economies including Mozambique, Zambia and Ethiopia, forecast to grow at a faster rate than many other emerging economies in the next 5 years, corporate growth strategies will need to be sustained. However many obstacles still remain in front of those international companies seeking to grow in Africa.

Africa’s cities are firmly on the radar of a growing number of international corporations. Home to some of the world’s fastest growing city economies, with a rapidly expanding urban middle class population, it is of little surprise that these urban centres have witnessed significant growth in corporate investment.

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The statistics speak for themselves. Total FDI inflows into the region more than doubled from $62.5 billion in 2003 to $128 billion in 2014. According to FDI intelligence from the Financial Times, the total number of FDI projects in 2014 exceeded 700, with a higher average project size of $174.5 million in 2014, up from $67.8 million in 2013. Africa’s share of global FDI has grown from 8% in 2013 to 17% in 2014. While Asia Pacific still accounts for the majority of FDI inflows, Africa has been the only region to see significant growth in its share of global FDI flows since 2003.

Corporate Entry into Africa – A New Chapter: Jones Lang LaSalle

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Source: Corporate Entry into Africa: A New Chapter

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