PROFILE
There is no denying the massive infrastructure needs in Africa; to keep up with
demand of rapid population growth and urbanisation, as well as to support existing
and establish new industries.
AN INCLUSIVE APPROACH TO
DOING BUSINESS IN AFRICA
By Mathieu du Plooy, managing director, WSP in Africa
It is well-documented and understood that doing business in African markets can be complex.
A change in approach is necessary to successfully invest, expand and do business in today’s
advancing African markets.
E
conomic growth in sub-Saharan
Africa (SSA) is estimated to
rebound to 2.8% for 2019. While
this is still below the 3% since 2015, the
more subdued growth is on the back
of enduring uncertainty in global and
domestic markets, alike, which continue
to influence political will, macroeconomic
stability and market fragility. And,
despite the recorded slower-than-
expected economic growth figures,
opportunities in Africa are abound.
The continent boasts a land mass larger
than India, China, the US and Europe
combined – and a third of the planet’s
www.equipmentandhire.co.za
mineral resources. SSA is often rated as
the fasted urbanising region in the world,
where currently the 143 cities across SSA
generate a combined USD0.5-trillion. In
addition, looking at projections for the
continent Africa is estimated to reach a
collective gross domestic product (GDP)
growth of USD2.6-trillion by 2020 and
have the largest workforce in the world
by 2040, which will also increase the
spending power of, and create millions of
new, middle-class consumers.
Linked to this, there is no denying
the massive infrastructure needs in
Africa; to keep up with demand of rapid
population growth and urbanisation, as
well as to support existing and establish
new industries, that will all contribute to
economic activity and social development
needs and drive more inclusivity. And,
there are burgeoning opportunities to do
business sustainably in Africa – if you are
clear on your intent.
From WSP’s experience, we are
certainly seeing a significant shift in global
attitudes about Africa which is also directly
influencing a changed approach to entering
and doing business in African markets.
In particular, the historical ‘conqueror’
attitude is certainly becoming a thing of
AUGUST 2019
29