Investors should take note that Africa’s demographics bode well for a strong and sustained rise in economic output on the continent over the coming decades.
Here are three of the most important demographic trends in Africa for investors to understand.
Risks and Challenges. Africa’s young and urbanizing population does, however, pose significant challenges and risks as well. To accommodate the surge in the working age population, African policy makers will have to improve education and to enact more job-friendly legislation so that Africa’s young have opportunities for employment and to better their standards of living. Governments, to stave off political unrest, will also have to keep transitioning toward more transparent and responsive democracies. Young people in Africa, many of whom have internet access, know what is going on around the world. They are demanding the ability to choose their own leaders and are increasingly holding their elected officials accountable for corruption and ill-advised policies. While a few longstanding dictators remain, democracy is undeniably on the rise in Africa and should, in turn, bolster continued growth in African economies.
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