Power, Transport, Logistics Reported to Be Growth Areas in Sub-Saharan Africa

“The commodity super cycle may have ended, but there are certainly bright spots for investors across sub-Saharan Africa,” said Natznet Tesfay, director of sub-Saharan Africa analysis at IHS Economics and Country Risk. “There is a lot of buzz at this year’s WEF around how countries can take advantage of new technologies to grow and diversify their economy. Many African countries aim to transform through the development of manufacturing and service hubs, but have had mixed success in first building reliable critical infrastructure. Still, there are opportunities for investors across the region in key growth industries such as power, including off-grid renewables, transport and logistics, ICT and light manufacturing, as countries look to secure long-term, resilient growth.”

Cote d’Ivoire, Tanzania, Kenya, Ethiopia and Rwanda are leading the pack with commitment to laying foundational infrastructure to underpin key growth industries, according to IHS analysis. “Governments with a clear path for investment are already seeing the fruits of their labor. We see growth of above 6 percent in these countries and we are forecasting growth rates above 4 percent forecast for Tanzania, Kenya and Uganda for the next 10 years.”

IHS assesses that the telecommunications sector is likely to emerge as a leading source of capital expenditure for East Africa.

According to the report, Tanzania presents mobile network operators with a favorable operating environment due to competitive licensing agreements. In Uganda, the recent rollout of a regulatory framework for mobile and agency banking services provides new opportunities. The Kenyan government's commitment to encourage growth in the telecoms sector is set to improve competition and inter-operability among existing mobile network operators and to stimulate mobile virtual network operator activity.

Source: IHS