Arab Today, arab today subsaharan africa boom creates opportunities for gcc investors
Last Updated : GMT 09:11:28
Arab Today, arab today
Arab Today, arab today

Sub-Saharan Africa boom creates opportunities for GCC investors

Arab Today, arab today

Arab Today, arab today Sub-Saharan Africa boom creates opportunities for GCC investors

Riyadh - Arabstoday

Sub-Saharan Africa has been experiencing strong growth in recent years, which is expected to continue. This boom creates an opportunity for GCC corporations and investors, according to QNB Group, as the region is well endowed with resources and people, but largely lacks the capital needed to fund its development. The IMF’s latest World Economic Outlook forecasts that Sub-Saharan Africa will grow at a rate of 5.7 percent in 2013-18, which would make it the second fastest growing region after Developing Asia (largely driven by China). This compares with the 4.2 percent rate forecast for the MENA region. Growth prospects are also broad based across Africa— two thirds of the countries are forecast to grow faster than 5.0 percent in 2013-18 and all but two above 3.0 percent. Africa’s growth is mainly driven by a youthful population, which is growing at a rapid rate of 2.5 percent and becoming increasingly urban and middle class. Economic growth is also being supported by the expansion of mobile communications (nearing a 70 percent penetration rate) and improving transport infrastructure, much of it built with Chinese support. This is helping to harness Africa’s resources which include metals and minerals, oil and agricultural products. The continent is also benefiting from the lowest level of conflict in decades and improving governance in several countries. Out of the 45 countries in Sub-Saharan Africa, three — South Africa, Nigeria and Angola — represent about 60 percent of the region’s $1.3 trillion GDP, and so attract much of the attention from foreign investors. Also companies in South Africa and in the Maghreb, which have regional operations, can serve as routes for investment in the continent. The GCC has long established links with countries in the Horn of Africa and the Sahel, and is also increasingly connected with other parts of the continent. Some of the countries experiencing the strongest growth in Africa are benefiting from the exploitation of their natural resources or are rebounding from a low base after a period of conflict. Both factors contributed to Angola’s rise over the last decade and for similar reasons South Sudan, the newest and one of the poorest country on the continent, is expected to see 21 percent growth in 2013-18, as it restarts oil exports. However, many of the continent’s most dynamic economies have been driven by other factors. For example, Rwanda, one of the top 3 performers over the last six years with an 8.1 percent growth rate, has no oil resources and instead has attracted investment due to efforts at improving its business environment, which is now ranked third in the region and 52nd internationally by the World Bank. Some GCC companies are already engaging in parts of Africa in sectors such as transport infrastructure, telecoms, real estate, banking and agriculture. The major GCC airlines operate flights across Africa, serving as a natural hub linking it with Asia. DP World has port operations in Senegal, Mozambique and Djibouti. In telecoms, Ooreedoo is bidding for a controlling stake in Maroc Telecom, which would also give it exposure to 13m customers across four Sub-Saharan countries where the firm operates. Etisalat already owns stakes in operators in Tanzania, Nigeria and other parts of West Africa. In real estate, Kingdom Holding of Saudi Arabia, for example, owns hotels in Kenya, Zambia and Ghana. In banking, QNB Group has branches in two Sub-Saharan countries, South Sudan and Mauritania (aside from its extensive presence in North Africa). Gulf investors have also taken stakes in various local banks, such as Istithmar in Kenya’s Shariah-compliant Gulf African Bank. Around 250 million Muslims in Sub-Saharan Africa, 30 percent of the total population, are potential customers for both conventional and Islamic banking. Agriculture is a particular area of interest to GCC investors, to support the Gulf’s food security. The continent has large amounts of underutilized land, substantial water resources, and low yields on much of the land that is cultivated. In this context, well placed and socially responsible capital investment could boost productivity. At the same time, research and cooperation on suitable crop varieties and cultivation techniques, such as that planned under the Qatari-led Global Dry Lands Alliance, could help farmers working marginal land. QNB Group expects that Africa will continue to experience strong growth for many years ahead, gradually closing the income gap with wealthier regions. This will create further opportunities for GCC companies and investors. Source: ArabNews

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today subsaharan africa boom creates opportunities for gcc investors Arab Today, arab today subsaharan africa boom creates opportunities for gcc investors

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 15:06 2017 Saturday ,25 March

Dialysis Supplies Dwindle for Syrians

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday