Of all emerging higher-growth economies, Africa was expected to provide the “most consistent and robust rates” of growth over the next 10 to 15 years, assurance, tax, transaction and advisory services company Ernst & Young said on Thursday.
The group indicated that developing markets could grow by as much as four percentage points higher than developed economies.
In 2011, more than 15 African economies registered growth rates higher than 5%, despite a slow recovery from the global recession.
“Africa’s growth momentum and potential is undeniable,” said Ernst & Young Africa business centre leader Michael Lalor, as the firm launched its latest thought leadership piece entitled ‘Doing business in Africa: from strategy to execution’.
He noted that the question had shifted from whether to have an Africa-wide strategy and its content, to how to execute a strategy “in ways that unlock value, adjust to change, and safeguard assets and investments.
“Such performances and projections are now fairly familiar, explaining the considerable interest that firms and financiers — both within Africa and around the world — have shown in developing strategies to tap into Africa’s growth story and potential.”
However, conditions on the continent would continue to test even the best-laid corporate strategies for growth in Africa, stated Lalor.
Ernst & Young said it had identified five macrofactors, or the ‘5 Ps’ framework, comprising perspectives, planning, places, partnerships and people, that combined, would maximise strategic opportunities and minimise strategic risks when doing business in and between African countries.