Investor interest in Africa on the rise

Growth through better penetration of existing markets is expected among 77 per cent of CEOs in Africa, compared to 38 per cent of global CEOs.

South Africa differs from the rest of the continent with only 33 per cent of respondents targeting existing markets – instead they are much more focused on expanding into new geographical markets.

The effectiveness of Africa’s regional economic communities - like the East African Community, the Economic Community of West African States and the Southern African Development Community – has been mixed.

“There is already huge potential in the EAC market and most companies are holding to tap into the opportunities expected from the integration,” said Kuria Muchiru, the Country Senior Partner for Kenya at PwC.

“It is easier to manage business costs and risks in a company’s domestic market devoid of complexities such as language barriers and difficulty in understanding foreign markets,” he noted.