‘Global Economy Watch’ report by PricewaterhouseCoopers LLP (PwC) projects that in 2030 there will be more people living in Luanda than those that are currently living in Greater London (estimated in more than 8,17 million persons).
According to these report: “Cities are the typical entry points for businesses trying to expand into new overseas markets, because they enable closer interaction with customers in a relatively small geographic space, which in turn helps contain distribution costs”.
The strategy leader of PwC’s South Market Region, Stanley Subramoney, has declared that the mentioned report :”Projects that economic activity in the ‘Next 10’ cities could grow around $140 billion by 2030″. Another PwC economic advisor, Dr. Roelof Botha, pinted out that “In addition to the trends with regard to high rates of GDP growth, rapid urbanisation and the so-called demographic edge that sub-Saharan Africa possesses, a number of other economic phenomena in the region are starting to appeal to the global investment community,” says Dr Roelof Botha, economic advisor to PwC.
Positive factors in general are “The significant new discoveries of mining and energy resources, in particular gold and gas, the substantial investment being made in infrastructure and capital formation by the private sector, the sustained growth in per capital incomes, which has led to demand shifts that are benefiting household consumption expenditure on durables, semi-durables and services; and the ability of a growing number of countries to raise financing for infrastructure projects on the international capital market”.
The low quality of ‘hard’ infrastructure like roads and railways, the Inadequate ‘soft’ infrastructure like schools and universities, and growing pains arising from political, legal and regulatory institutions struggling to deal with a bigger and more complicated economy remain obstacles to a sustainable growth.
“The challenges that policy makers face is to convert Africa’s demographic dividend into economic reality by overcoming these hurdles. History suggests this will not be a quick or easy process. Infrastructure development is a key driver for progress across Africa and a critical enabler for sustainable and socially inclusive growth. However, investors should form their own plans to mitigate these problems by supporting infrastructure skills and development programmes,” concludes Stanley Subramoney.