By THE INDEPENDENT UG
London, England | THE INDEPENDENT | Market research company Euromonitor International has released a report forecasting that the GDP of Sub-Saharan Africa will double by 2040, reaching over USD 4.5 trillion from the 2022 figure of USD 2 trillion. The study examined the economies of 46 African countries, with a focus on Uganda, highlighting rising consumption, commodity exports, and foreign direct investment as drivers of Africa’s economic growth. The report predicts that East Africa will experience the fastest growth, with GDP expected to rise by 193% in real terms over 2022-2040, outpacing other African regions and even surpassing emerging markets like India and Indonesia.
The region is projected to become a USD 1 trillion economy by 2037 and overtake Southern Africa as the second-largest regional economy by 2039. The report emphasizes the importance of continued foreign direct investment, particularly in technology, energy, manufacturing, and services sectors, as well as IT services and renewable energy solutions. It also highlights the potential for Sub-Saharan Africa to leverage its favorable landscape for green and sustainable energy investments, presenting growth opportunities and the need for a robust, affordable, and sustainable energy sector.
The study acknowledges challenges such as corruption, macroeconomic instability, and poor infrastructure but sees significant opportunities in the digital economy, green economy, natural resources, and improving value chains. Commercial entry strategies are advised to consider the heterogeneity of Sub-Saharan Africa, with careful due diligence and a focus on economic stability over rapid growth.
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