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Deloitte on Africa

The “New” Economies in Africa

Deloitte on Africa

Background

Intra-African trade is remarkably weak. African economies’ intra-regional trade amounts to only 12%  on average, compared with 60% intra-regional trade in Europe, the same in Asia and 40% in North America. With its diverse array of economic, socio-cultural, political and environmental landscapes, ‘Africa’ presents a challenge for those seeking to trade across the continent. The recent rise of regional hubs in Africa has gained attention, as investors realise that regional integration is key to enabling cross-border trade. Full integration could bring with it the potential for economies of scale, leading to increased investment flows into the continent. This in turn would enable Africa to participate in the world economy as a truly global competitor. This paper focuses on opportunities created by the “new” economies emerging in Africa and the cross-border trade in the regions of Central Africa, East Africa, North Africa, Southern Africa, and West Africa.

Key findings

  • Vast opportunities are created by “new” economies and by cross-border trade within Central Africa, East Africa, North Africa, Southern Africa, and West Africa;
  • “New” economies – such as Angola, DRC, Ethiopia, Ghana, Libya, Mozambique, and Zambia – demonstrate that Africa is endowed with natural resources (minerals, land, and people), most of which are still untapped;
  • The continued growth of South Africa and Nigeria (the “African giants”) is critical in order to create a stable platform for growth in the rest of the continent;
  • A combination of infrastructure development and increased regional integration will enable more investment flows into the continent and will allow Africa to participate in the world economy as a truly global competitor.

Download

Deloitte on Africa Deloitte on Africa - The “New” Economies in Africa (PDF)

Key contact

  • Debbie Thomas
    Lead Partner,
    UK Africa Services Group
  • Anushuya Gounden
    Partner, Head of Africa Nerve Centre, South Africa

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