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Breaking News in the Project Management World
Saturday, August 28, 2010
AFRICA's EXPECTED FAST GROWTH GOOD NEWS FOR PROJECT MANAGERS
Reported by Jaycee Kruger in South Africa
With the 2010 FIFA World Cup well over, the international sports spotlight has moved on, from South Africa to other tournaments in other regions.
A new report from the McKinsey Global Institute shows that Africa is now among the fastest-growing economic regions in the world. Africa's collective gross domestic product rose at a 4.9 percent annual rate from 2000 through 2008, twice the pace of the preceding two decades.
Bloomberg Businessweek reports that at least four groups of industries (Consumer goods, Resources, Agriculture and Infrastructure) on the continent could together generate as much as $2.6 trillion in annual revenue by 2020, or $1 trillion more than today, measured in 2010 dollars. The biggest business opportunity of the four lies in consumer goods and services, followed by natural resources, agriculture, and infrastructure, and all this growth will not happen without projects.
Government reforms that created greater political stability, improved the macroeconomic environment, and energized the business environment are key drivers. For example, several countries halted their deadly conflicts. Policymakers also reduced inflation, cut budget deficits, lowered trade barriers, cut taxes, privatized companies, and liberalized many sectors, such as banking. Access into many countries has opened up lately.
As a result, a dynamic African business sector is emerging. The continent now has more than 1,400 publicly listed companies. It boasts more than 100 companies with revenue greater than $1 billion. Telecom firms have signed up more than 316 million new mobile-phone subscribers in Africa since 2000—more than the total U.S. population. Banking and retail are flourishing as household incomes climb. Construction is booming as new cities rise. And how will this new business sector realize their strategies? Through projects!!
There is the rising global demand for oil, gold, diamonds, and other commodities, brought about by, amongst others, the rise of the urban African consumer. Today, 40 percent of Africans live in cities, a proportion that is close to China's and continuing to expand. The continent already has 52 cities with populations greater than 1 million—equal to Western Europe—and is projected to add 32 by 2030. As in other developing economies, urbanization in Africa is creating jobs, boosting productivity, and lifting incomes. The number of households with discretionary income is projected to grow by 50 percent over the next 10 years, reaching 128 million. Urbanization drives demand for investment in new roads, rail systems, clean water, power generation, and other infrastructure in Africa. Africa has excellent capacity to become an exporter of clean energy like solar and wind energy harvested from plants across the deserts of North Africa.
The full McKinsey report can be downloaded at www.mckinsey.com/mgi.
With the 2010 FIFA World Cup well over, the international sports spotlight has moved on, from South Africa to other tournaments in other regions.
A new report from the McKinsey Global Institute shows that Africa is now among the fastest-growing economic regions in the world. Africa's collective gross domestic product rose at a 4.9 percent annual rate from 2000 through 2008, twice the pace of the preceding two decades.
Government reforms that created greater political stability, improved the macroeconomic environment, and energized the business environment are key drivers. For example, several countries halted their deadly conflicts. Policymakers also reduced inflation, cut budget deficits, lowered trade barriers, cut taxes, privatized companies, and liberalized many sectors, such as banking. Access into many countries has opened up lately.
As a result, a dynamic African business sector is emerging. The continent now has more than 1,400 publicly listed companies. It boasts more than 100 companies with revenue greater than $1 billion. Telecom firms have signed up more than 316 million new mobile-phone subscribers in Africa since 2000—more than the total U.S. population. Banking and retail are flourishing as household incomes climb. Construction is booming as new cities rise. And how will this new business sector realize their strategies? Through projects!!
There is the rising global demand for oil, gold, diamonds, and other commodities, brought about by, amongst others, the rise of the urban African consumer. Today, 40 percent of Africans live in cities, a proportion that is close to China's and continuing to expand. The continent already has 52 cities with populations greater than 1 million—equal to Western Europe—and is projected to add 32 by 2030. As in other developing economies, urbanization in Africa is creating jobs, boosting productivity, and lifting incomes. The number of households with discretionary income is projected to grow by 50 percent over the next 10 years, reaching 128 million. Urbanization drives demand for investment in new roads, rail systems, clean water, power generation, and other infrastructure in Africa. Africa has excellent capacity to become an exporter of clean energy like solar and wind energy harvested from plants across the deserts of North Africa.
The full McKinsey report can be downloaded at www.mckinsey.com/mgi.