Five Reasons to Invest in Africa

1. Five Reasons to Invest in Africa The African continent is striking a clash between the richness of the cultural variety that defines its past and the rupturist changes that seem to demand the future, while the present assists in the construction of a new identity that seeks to combine past and future without renouncing anything. In the midst of this struggle, the economy stands as one of the key pillars when facing the search, in which a series of own factors make Africa a place more and more quoted by companies and investors to develop their Economic projects. Increase in the young, hard Increase in the young, hard- -working and educated population working and educated population The high African birth rates and the reduction of infant mortality (although much remains to be done in this section) provide an unbeatable scenario for the future of the continent. According to the African Development Bank (AEO), an agency run by the United Nations Development Program, there are currently 200 million people in Africa aged between 15 and 24, making up the largest youth population in the world. In addition, this trend is expected to exceed, since in the agency's forecasts this number will double by 2045. In addition, in 2015, about 14 million young people, who are coming more prepared since the average of university students has been increasing by 21% since 2000. On the other hand, this strong increase in the young and working population can cause problems in giving them a way out of the labor market, in many places still not ready for their reception. As a consequence, millions of young people are forced to emigrate from their countries, especially to the West, but also those who demand from their governments solutions to the lack of prospects for the future. The latter is precisely what happened in Senegal, where the government of Abdoulaye Wade was overthrown by the push of the young people who saw their labor future very complicated by the fact that 15% of the unemployed in the country. Greater strength and progress in the banking sector Greater strength and progress in the banking sector South Africa (6), Mauritius (15), Namibia (36), Morocco (42) and Botswana (43) are today among the 50 countries with the strongest banks according to the World Economic Forum , They leave behind more developed a priori countries like Spain (112) or the United Kingdom (89). Growth in this area is crucial for attracting investment, leaving aside widespread corruption in the continent at the institutional

2. level. Greater security of the financial assets of the companies allows you to be able to transfer your capital in good conditions. However, the European Investment Bank (EIB) points to the small size of financial institutions as one of the aspects to be improved in order to make a progress in competitiveness. In addition, this development will also allow the number of adults with a current account to rise to 34 per cent in sub-Saharan Africa during 2014 but which has risen from 24 per cent in 2011. This increased access to Banking and credit will help overcome the current obstacles to the growth of small and medium- sized enterprises. Commitment to renewable energies Commitment to renewable energies The case of renewable energies is significant, especially in terms of solar energy, with enormous potential for growth because of the natural characteristics of the continent. In 2015, the International Agency for Renewable Energy (IRENA) launched a report in which it projected the production of electricity by this route and placed it at 22% of the total by 2030, surpassing by more than four times the level current. In addition to the benefits for sustainable growth with the environment, renewables also affect employment, as shown in the same report, dating to more than seven million people working worldwide in the sector, an increase of 35% Compared to just two years ago. Africa's commitment to these energies translates into a potential for growth in both jobs and sustainability. Although Kenya is the ideal destination for investors in renewable energies, concentrating 27% of the projects that come to Africa, the example to follow is that of Cape Verde. As explained in this special in eldiario.es , this small country of 500,000 inhabitants aims to become the first nation in the world whose energy comes from 100% of renewable energy, driven mainly by the high cost of fossil fuels that must import and Which leave electricity prices three times higher than in Europe. The companies are landed hard The companies are landed hard Ernst & Young is one of the companies that has analyzed the growth of Africa as a destination for foreign investments. Throughout a report with a general perspective on the situation, various data and rankings, such as the 118 billion euros invested in 2014, 136% more than in 2013 or the United States remain the country that invests the most, A ranking in which Spain occupies the tenth position after reducing the flow by 23.5%.

3. The Economist spins even thinner by quantifying 660 projects launched by 464 companies in 2014. Examples include a shopping center in Egypt of about 165,000 square meters, 420 stores and an investment of more than 630 million euros by a wealthy family Of the United Arab Emirates. But as the Boston Consulting Group (BCG) warns, local companies continue to take a certain advantage by knowing the terrain and being able to read market movements better. That is why they recommend that companies that want to install in the area build strong local teams and take a long-term view of results. Economic sectors with a lot of growth margin Economic sectors with a lot of growth margin The Financial Times, in its Report on Investment in Africa, notes that there are up to 24 economic sectors in Africa with a growth margin of more than 25%, figures that account for all that remains to be developed and the market opportunities they offer. Among others, the sectors of the renewable energies, infrastructures, mineral resources and telecommunications that focus the majority of the investments of the continent. Of course, according to the report financial services are the ones that receive a greater number of projects, with a total of 133 throughout 2014 that supposed a market share of 20%.