In 2022, Africa's economic landscape stood out favorably on the global stage, demonstrating resilience in the face of obstacles like tightening global financial conditions and exacerbated supply chain disruptions resulting from the Russian-Ukrainian war, unlike many other regions worldwide.
Growth is expected to rebound to 4% by the end of this year and stabilize at 4.3% in 2024, showcasing Africa's resilience to shocks.
1. AFRICA AT A GLANCE
I. The Business Titans of Africa
– There are around 345 companies in Africa that generate yearly revenue of $1 billion or higher.
– They jointly generate over $1 trillion in revenues.
– Out of the 345 companies, 230 were founded by local entrepreneurs in African countries.
– These major corporations are present in all sectors across the continent.
II. The Status of Africa’s Trade Affairs
– The trading correlation between Africa and the rest of the world is uneven. Africa mainly exports basic commodities and imports mostly manufactured goods.
– In 2021, the amount of manufactured goods imported by Africa was triple the amount of goods exported.
– Africa’s merchandise exports in 2022 comprised mostly of primary goods, accounting for 77% of the total.
III. FDI Inflows Across Africa
Over the past 5 years, foreign direct investment (FDI) inflows have increased in four African regional economies. Although intraregional investment has grown, it still makes up a small portion of all projects; intraregional greenfield projects showed a slight increase from 13% to 15% in 2022. While international project finance deals for Africa declined by 47% in value in 2022, the number of projects increased by 15%. On the other hand, Egypt has witnessed a substantial surge in FDI, with cross-border (M&A) transactions driving a twofold increase in overall investment, reaching a total of $11 billion. This increase in FDI has also resulted in a doubling of greenfield projects in the country. Conversely, Morocco has seen a minor dip of 6% to $2.7 billion in FDI flows.
III. Africa’s Natural Treasures
In 2018, the estimated value of Africa’s natural capital was $6.2 trillion.
It is worth noting that Africa has 65% of the world’s arable land and significant freshwater resources, which makes up 10% of the planet’s internal renewable freshwater source.
