05/12/12 18:01 Filed in: Emerging Markets
Africa's rising consumer class is beginning to establish firm ground for long-term growth. Given the growing labour force and urbanisation are expected to boost household income, the growth prospect for Africa looks brighter. What can banks do to benefit from this trend? A combination of positive trends has been supporting the growth potential in Africa: the recent commodity boom has attracted a significant volume of investment funded by numerous resource-thirsty developed and emerging economies to the continent; the governments in many countries have managed to stabilise the political and economic conditions, which enabled many of them to enjoy increased access to international capital. This trend is forecasted to be maintained thanks to Africa's social and demographic pattern, in particular growing labour force and urbanisation. It is therefore widely recognised that Africa's rising consumer class is beginning to establish firm ground for long-term growth. In these circumstances, what can banks with operating interests in Africa do to benefit from the emerging opportunities?