Sub-Saharan Africa seen as promising consumer market, says Agility survey
The recently released 'Agility Emerging Markets Logistics Index 2016' offers interesting insight into worldwide markets. It also pegs consumer spending by a fast-growing middle class as important a growth driver for Africa as mineral and resource demand. In the survey, industry executives ranked South Africa, Ghana, Kenya and Nigeria as the most promising markets in Sub-Saharan Africa. According to the more than 1,100 executives who responded to the survey, poor infrastructure, lack of power generation and corruption pose the greatest risk to African economies.
Geoffrey White (pictured), CEO of Agility Africa, believes the market is open for first movers who can navigate risk and nurture African talent. He added that there are plenty of opportunities for those seeking to build long-term, sustainable businesses.
"The results show a serious disconnect between the perception of the market and actual opportunities. These are some of the world's fastest-growing economies. Africa's requirement for logistics services and supply chain expertise is huge and growing every day. At the same time, many of the companies that need logistics to enter the market don't know how to get started in Africa or aren't willing to take the risk."
Despite recent growth and surging foreign investment, Sub-Saharan Africa remains a challenging frontier for many. Only 21.2% of logistics industry executives surveyed said their companies have operations there, while another 12.7% said they are in the planning stages of entering African markets. More than 43% said they have no plans to set up in Africa.