Businesses around the world are starting to realize the potential Africa has for global business growth. With more than half of its population being under the age of 35 and its middle class on the rise every day, companies especially in the US are funneling money into the continent in hopes to rope in some of the business opportunity.
As we posted earlier this week, President Obama is hosting the first ever US-Africa Leaders Summit, whose attendees include business people, political leaders, government officials, and leaders from nearly 50 African nations. Discussion will take place on topics from trade, security, and governance between the US and Africa. While other countries and businesses in the European Union and China have already taken a much larger step to take advantage of prospects in Africa, the US is now trying to reinforce economic and diplomatic ties with the continent. With the Obama administration announcing $33 billion in deals at the summit's business forum, $14 billion in private sector investments and the rest in government financing.
Hotel companies from around the world also see great potential in Africa's middle class. It is expected that these younger individuals will be traveling a lot more around the continent and also around the world. Making companies brands well known to the population in Africa could be a good boost for hotel businesses within Africa and around the globe.
When it comes to the credit card and banking industry, there is a large opportunity for growth. As only 20% to 30% of the population in Africa currently has access to a bank. Companies such as MasterCard are trying to reach these individuals that have not previously had access to products such as credit or debit cards.
As you can see the business growth and potential for global companies is growing drastically within Africa. It will not be long before companies will be doing a lot more research into the market and possibilities that await them within this actively growing continent. To read more on the topic of the US-African Leaders Summit check out the blog United States Hosts African Trade Summit.