Investing in Africa

Africa has gone in a decade from being a hopeless country to being a great resource for the future, not only in relation to economic growth, but also human development. Here are some hints on key countries and sectors to explore for those who want to invest in the African continent.

The image of Africa as that of an immobile continent outside history is now inadequate. The world of tomorrow, far more than in New York and London, is being built today in Lagos, Kinshasa and Luanda.

In the last 10 years, thanks to economic reforms and better governance, the African economy in fact recorded the fastest growth in the world (4-7%), and according to a report by the African Development Bank, the continent is set to grow further, indeed faster, in the coming years.

African Free Trade Treaty will encourage investment

Africa's free trade treaty signed in July 2019 by Nigeria and Benin brings to 54 out of 55 countries on the African continent to have signed the AfCFTA. The treaty aims to create a tariff-free zone for goods and services similar to that of the European Union to favour those who wish to invest and develop the African economy.

The world's largest trading area

Africa is the largest free trade area in the world with 89 cities with more than one million inhabitants by 2030, 400 companies with an annual revenue of more than USD 1 billion and 122 million customers of services financial.

Africa second fastest growing continent in the world

According to World Bank data, theAfrica is the second fastest growing continent after Asiawith growth prospects of 4.1% in the next two years, despite the unfavourable global climate. Demographic growth portends a strong increase in consumption and the middle classes, also due to a younger working population.

4 sectors in which to invest in Africa without sector risk

Interesting sectors in which to invest abroad and which can hide positive surprises in which to invest in etf are mainly four:

• Agribusiness,
• renewable energies,
• constructions
• pharmaceuticals.

Agribusiness. The African continent can produce 3 to 5 crops per year worth 1 trillion ($). Etf investments in this production segment to intercept and develop within agriculture 4.0 projects would not only feed the entire African continent, but also much of the rest of the world with organic and low-cost products.

Renewable energies. Energy production from fossil fuels and hydroelectricity is already being bypassed on the African continent: photovoltaic technology and solar panels are in every African market.

Construction. Africa's 54 capital cities and their satellites scattered all over the country are experiencing a BOMM in construction that can be invested in, the sector is growing at a very fast pace and we are facing a construction market explosion.

Medicine/pharmaceuticals. Another sector in which to invest due to the progression of births and development, the need for medicine and health care, both public and private, will explode. Today, there is one doctor for every 20,000 inhabitants compared to Italy where we have 1 for every 80!

This revolution in pharmaceuticals will increase life expectancy from 50 to 54 years in just three years.

Great investment opportunities in ETFs and the real economy

In central africa there are great opportunities for etf investment in the new industrial zone in Kribi. The settlement that is gradually being developed at the port of Kribi will in the coming years become one of the most interesting and profitable industrial sites for those entrepreneurs who are looking at Central Africa with forward-looking eyes and are interested in investing abroad in etf.

Watch the embedded youtube video of Cameroon's government agenda where Kribi the tourist and industrial city by the sea is located to better understand what areas and sectors of investment we are talking about.

Managing change and your expansion in Africa calmly and professionally

Thanks to important bilateral recognitions and collaborations with institutions, port agencies etc, for your economic breakthrough in Africa, AEDIC offers the opportunity to enter a safe harbour, with tax benefits and tax relief for 10 years, concessions and low cost of highly educated skilled labour in central location in AFRICA.

When you have decided to act, we provide you with all the essential risk management tools throughout the investment lifecycle.

Aedic with its consultants gives you the opportunity to enter Central Africa and take a position where the industrial city of Kribi is being built.

Watch this video to better understand what we are talking about.

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