Discussion during Breakfast : Why come to Africa for Shanghai'er?

Today we will have a smart breakfast. It's time to discuss about business issue. Is it relevant for Shanghai based company to invest in Africa?

Invest in Africa for Chinese Company

After Asia, Brazil or Russia, African continent is to become the next emergent pole. From 2012 till 2030, the increase of the annual GDP(GROSS DOMESTIC PRODUCT) would be even slightly superior to that of Asia, to 4,8 %, against 4,6 %. And big cities would see their population increasing strongly, with 300 million inhabitants in more. The continent has everything to be «the next big consumer market of mass in the world ".

According Chinese gouvernement, five faster-growing cities are Johannesburg (South Africa), Cairo (Egypt), Luanda (Angola), Lagos (Nigeria) and The Course (Cape) (South Africa). Most of 96 cities studied in this study visit their population to increase very strongly. The number of inhabitants of Lagos is so going more than to double before 2030, to reach25 millions. It will be then most big city of the continent.

All in all, the African big cities are going to count 300 million people moreover, in seventeen years. The increase of the GDP(GROSS DOMESTIC PRODUCT) and this demographic dynamic are going to engender a boom of the consumption. This spending should double in Johannesburg by 2030), and to be multiplied by three or five in cities as Abuja (Nigeria) or Luanda.It is really intersting for China based company

But these future consumers will have no same purchasing power from a city to the other one. In Lagos, the new middle class will buy especially staple commodities, at a low price. Before 2030, every inhabitant should so double his spending of food.

In Luanda, on the other hand, where the middle class should be a little easier(more well-to-do), the level of the food spending(expenses) should decrease in half with regard to(compared with) the total consumption. He will continue to grow in absolute term. The spending in restaurants, hotels and activities of leisure should, them, increased tenfold.

Finally, in the cities where the inhabitants have higher income, as Johannesburg, the distribution of the spending will remain, probably, more stable. This analysis of the future types of consumers, city by city, on the most promising continent to the world, is the real gold mine for the companies which have ambitions in Africa.

My Simax

JX Paulin