Seeds of Opportunity: The African Growth Series
November 2023 | Issue 4
In this week's issue, you will learn more about:
- BUSINESS DAY TV INTERVIEW: Africa tech: mobile money, remittances & earned wage access
- AFRICA OPPORTUNITY: Exploring Africa’s Real Estate Landscape
- AFRICA OPPORTUNITY: Satellite Internet Investment Case
- Africa’s Shifting Global Interests: East vs. West - Opportunities and Threats in Africa under a New World Order
- NEXT WEEK EVENT: Consulting in the Age of AI: Paving the way for future success
- UPCOMING EVENT: Africa’s Green Economy Summit 2024
BUSINESS DAY TV INTERVIEW: Africa tech: mobile money, remittances & earned wage access
Africa's money & technology are driven by three factors: mobile money, remittances and earned wage access.
BusinessDay TV speaks to Frost & Sullivan Africa Consultant Sisonke Mgwebi as she unpacks this relationship in greater detail, specifically focussing on earned wage access.
AFRICA OPPORTUNITY: Exploring Africa’s Real Estate Landscape
The real estate market, encompassing both residential and commercial properties, is experiencing an upward swing in Africa, driven by a burgeoning population and a growing middle class. This dynamic environment presents opportunities for investors and developers. The market's value is projected to reach a staggering US$15.1 trillion by 2023, with residential real estate accounting for US$12.7 trillion of that figure. This growth is expected to continue at an annual rate of 5.9% between 2023 and 2028, reaching US$20.1 trillion by 2028.
The real estate industry in Africa is rapidly growing due to changing customer preferences, specifically the shift towards urbanisation and modernisation. Urbanisation has created a demand for modern housing and commercial spaces in cities with high-speed internet, security systems, and eco-friendly buildings. The young population is driving demand for affordable office spaces and housing in urban areas. Africa's high economic growth compared to developed markets has attracted local and international investors, leading to a surge in construction projects, mixed-use developments, and infrastructure improvements. Favourable government policies have also contributed to the growth of the sector, promoting investment and development in real estate.
AFRICA OPPORTUNITY: Satellite Internet Investment Case
Satellite broadband internet access is achieved through communication between satellites and ground station gateways that relay internet data. It is typically provided to individual users through geostationary satellites. The Sub-Saharan African market is expected to grow significantly in the coming years. Sub-Saharan Africa’s satellite broadband market is expected to grow from US$122.9 million in 2023 to US$391.4 million in 2030, driven by growth across industries that require low-latency internet access in remote areas. The commercial needs for broadband internet are accelerating the development of new satellite technologies. However, regulatory uncertainty and the high cost of setup and initial hardware can slow down the immediate adoption of the technology. There are three main satellite business models: leasing satellites, full ownership, and Ground Stations as a Service (GSaaS). Leasing satellites involves renting other deployed and maintained satellites to sell their services. It provides flexible operations without initial capital expenditure. Full ownership allows private usage or spectrum leasing to third parties. Post-deployment has high operating margins and can provide predictable cash flow. GSaaS is a cloud-based service that provides satellite operators with the infrastructure and resources they need to control and communicate with their satellites. GSaaS will be crucial in expanding satellite access on the ground and reducing the cost for local providers to use the services. The market is dominated by several multinational players that are vertically and horizontally integrated, but partnerships are happening with African service providers. Commercial satellite is a niche opportunity that can provide substantial access and coverage in the long term but needs to significantly decrease the setup costs for consumers and increase local market participants.
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Africa’s Shifting Global Interests: East vs. West - Opportunities and Threats in Africa under a New World Order
Frost & Sullivan was honoured to have hosted a thought-provoking panel discussion with Craig Parker, Frost & Sullivan Africa’s Research Director and lead Economist, alongside Dzingira Matenga of Zamlin Investments and Hendrik Malan, CEO and Partner of Frost & Sullivan Africa. We delved into the potential impacts of Africa’s Shifting Global Interests, particularly examining South Africa’s role within BRICS and the introduction of new influential players. Key takeaways include:
1. BRICS Economic Power: With recent additions such as Argentina, Egypt, Iran, Ethiopia, Saudi Arabia, and the UAE, BRICS now commands nearly 30% of the world's GDP, rivalling the G7 countries. Anticipated economic development rates in some BRICS nations suggest surpassing G7 GDP by 2040.
2. South Africa as a Gateway: Positioned strategically, South Africa can act as a catalyst for Africa's benefits within BRICS, fostering improved relationships, job creation, and enhanced accessibility to various BRICS members for regional development.
3. Commercial Focus: The new BRICS partnership presents an opportunity to create a commercial alliance, free from local geopolitical constraints, focusing on mutual development.
4. Infrastructure Financing: A substantial opportunity exists to establish financing and development institutions geared towards funding diverse infrastructure projects.
Exciting times lie ahead as Africa navigates the evolving global landscape.
For those who could not make the webinar:
Register below to watch it on demand - https://frost.zoom.us/webinar/register/5816987151432/WN_8k65UwiBRvqXjw6WiidLQg#/registration
NEXT WEEK EVENT: Consulting in the Age of AI: Paving the way for future success
You can still join us at the Stellenbosch Business School Consulting Club on Thursday 30 November 2023 from 18h00 - 20h00 as business consulting industry experts discuss the impact of AI technology on the Consulting industry both today and in the years to come!
There will be a networking opportunity after the event for those attending on campus.
Register to attend in person: https://lnkd.in/ghsWgVh2
Register to attend online: https://lnkd.in/geqKme3C
UPCOMING EVENT: Africa’s Green Economy Summit 2024
The VUKA Group will host Africa's Green Economy Summit from 21-23 February 2024 at the CTICC, Cape Town, South Africa!
This conference will connect the global capital market with green economy projects from across the continent. The theme in 2024 is “Mobilising investments for green growth”. The Summit forms part of the E-Fest Cape Town - a week of special events and entertainment to showcase sustainability, e-mobility and renewable energy solutions, with the clear message to GO GREEN AFRICA!
As a key partner, Frost & Sullivan Africa would like to give the opportunity to its network of project owners to list their projects and potentially participate in the investor pitching event at no cost. The companies who get selected will get the opportunity to participate in the project pitch – whereby they will be given the opportunity to present their green project to qualified investors in order to acquire funding and gain feedback.
Projects will be categorised by green economy sector and size – companies in Renewable Energy, Electric Mobility, Waste Management and Water services are encouraged to apply. The 10-minute presentations (5-minute pitch and 5-minute Q&A) will take place during the extended coffee breaks and lunch.
You can list your project here: https://lnkd.in/dDtqYUEA
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
