Why Africa Could Be Your Next Growth Engine

In an insightful piece published by the Forbes Business Council on August 19, 2025, the article “Why Africa Could Be Your Next Growth Engine” charts the continent’s rapid transformation from a largely under‑exploited market to a dynamic hub of opportunity for investors, entrepreneurs, and corporations. Drawing on a blend of macro‑economic data, sector‑specific case studies, and forward‑looking trends, the article presents a compelling case for why Africa should be front‑and‑center in any strategic expansion playbook.

1. A Demographic Dividend in Full Swing

At the heart of Africa’s growth narrative lies its staggering demographic profile. The continent is home to roughly 1.4 billion people—more than the entire European Union—projected to grow by another 250 million by 2035. A youthful median age of 20.5 years means that a sizeable segment of the workforce is currently below retirement age, fueling both labor supply and consumer demand.

This demographic momentum is already manifesting in urbanization rates that have spiked to an average of 43 % in 2023, up from 29 % a decade earlier. Urban hubs such as Lagos, Nairobi, Addis Ababa, and Johannesburg are becoming high‑growth economies that drive demand for technology, real‑estate, retail, and financial services.

2. Digital Adoption is Redefining Every Sector

Africa’s mobile penetration rate—over 80 % across the continent—has eclipsed many developed markets. Mobile‑first innovations have created digital ecosystems that were previously unimaginable. M‑Pesa in Kenya pioneered mobile money, and today, fintech ecosystems across Nigeria, South Africa, and Egypt boast thousands of active users. A Forbes‑linked study cited in the article estimates that mobile‑banking transactions in Sub‑Saharan Africa grew 12 % annually from 2018 to 2023.

The rise of “frictionless” fintech is also being mirrored in e‑commerce, digital health, and online education platforms. African startups such as Jumia, Konga, and Paystack have attracted significant VC funding, validating the continent’s attractiveness for technology‑driven business models. The article underscores how these innovations create new avenues for international partners to embed themselves within local ecosystems—leveraging local talent, infrastructure, and market insights.

3. Raw Material Abundance and Manufacturing Potential

Africa is endowed with vast mineral wealth: lithium, cobalt, nickel, copper, and rare earth elements—critical for batteries and electronics. The continent’s extractive sector is already a top‑10 contributor to global commodity supplies. In 2023, Africa accounted for roughly 70 % of the world’s lithium output. The article points out that this raw material advantage, coupled with rising global demand for electric vehicles, is priming the continent for a manufacturing boom.

Several countries, including Rwanda, Ghana, and Ethiopia, have set up special economic zones (SEZs) that offer tax incentives and streamlined regulatory processes. These zones aim to attract foreign direct investment (FDI) in manufacturing, particularly in assembly and light‑engineering. The article cites a 2024 survey where 67 % of multinational firms expressed interest in establishing production footprints in Africa, citing cost advantages and the growing consumer base.

4. Renewable Energy: From Necessity to Strategic Asset

Africa’s energy landscape is undergoing a seismic shift. The continent’s average solar irradiance exceeds 6 kWh/m²/day, while wind resources are high along the West African coast. Between 2019 and 2023, renewable energy capacity increased by 28 %—the fastest growth rate globally.

The article highlights projects such as the 500 MW Lake Turkana Wind Power Project in Kenya and the 1 GW of solar farms planned for Morocco’s Dakhla region. These developments not only meet domestic electricity needs but also provide export opportunities to neighboring regions. International investors can tap into these projects through power purchase agreements (PPAs) and joint ventures with local utilities.

5. Agriculture: The Backbone of Economic Stability

With 65 % of African people still dependent on agriculture for livelihood, the sector remains a major growth lever. Modernization initiatives—drip irrigation, precision farming, and data‑driven supply chains—are being accelerated through public‑private partnerships. The article references the “Green Belt Initiative” in Ethiopia and “AgriTech Hub” in Kenya, both of which have attracted foreign investment.

Moreover, the continent’s vast arable land—estimated at 700 million hectares—offers immense opportunities for agribusinesses to establish supply chains, process foods, and enter export markets. This is especially pertinent given the rising global appetite for sustainable, ethically sourced food.

6. Market‑Specific Success Stories

The Forbes article uses case studies to ground its arguments. One highlighted story is that of a U.S. consumer goods company that pivoted its distribution strategy to African online platforms, boosting sales by 35 % within 18 months. Another is a European fintech firm that partnered with African mobile operators to launch a low‑cost micro‑loan product, now serving 5 million borrowers across 12 countries.

These stories illustrate that success in Africa often hinges on localized strategies: embracing mobile ecosystems, partnering with local distributors, and adapting product offerings to local consumer preferences.

7. Challenges That Must Be Navigated

While the prospects are bright, the article does not shy away from outlining key hurdles:

Regulatory Fragmentation: Policies vary widely from country to country, and bureaucratic processes can delay projects.
Infrastructure Gaps: Despite improvements, roads, ports, and electricity grids remain unevenly distributed.
Talent Retention: Brain drain is an issue in several nations, underscoring the need for training and retention programs.
Political Risks: While many African governments have stabilized, some regions still experience volatility that can affect investment security.

The article stresses that careful due‑diligence, local partnerships, and a long‑term commitment are essential to mitigate these risks.

8. The Strategic Imperative for Global Players

In its concluding analysis, the article calls on global firms to treat Africa not as a “last resort” but as a core growth engine. By aligning investment strategies with the continent’s demographic trends, digital transformation, resource endowment, and renewable energy momentum, companies can unlock substantial upside.

Key takeaways for businesses:

Leverage Mobile‑First Solutions: Integrate fintech, e‑commerce, and digital services that resonate with the mobile‑savvy populace.
Invest in Local Manufacturing: Utilize SEZs and tax incentives to build supply chains that are resilient and scalable.
Collaborate with Public‑Private Partners: Engage in joint ventures that help navigate regulatory frameworks and unlock infrastructure projects.
Prioritize Sustainability: Embrace renewable energy and sustainable agriculture to meet both regulatory and consumer expectations.

Bottom Line

The Forbes Business Council article, “Why Africa Could Be Your Next Growth Engine,” presents a robust, data‑driven argument for why Africa should be at the forefront of any global expansion strategy. Its blend of macro‑economic context, sectorial opportunities, and real‑world case studies provides a persuasive roadmap. For investors and companies willing to navigate the challenges, the continent offers a fertile ground for growth, innovation, and long‑term value creation.

Read the Full Forbes Article at:
[ https://www.forbes.com/councils/forbesbusinesscouncil/2025/08/19/why-africa-could-be-your-next-growth-engine/ ]