Emerging growth: Africa’s greatest natural resource…… its people
Did you know???Last Friday was Mickey Mouse Day, National Princess Day and, wait for it… National Vichysoise Day? We didn’t.??
However, what we did know was that, since 1990, the United Nations Economic Commission for Africa has designated the 18th November as?The African Statistics Day?– an event we follow closely as it shines a bright spotlight on a series of transformational forces that are already combining to generate a perfect storm which will not only leave in its wake an African landscape characterised by re-shaped features of social and economic strength and inclusivity but which will also continue to throw up fascinating and exciting investment opportunities for individuals and institutions alike.?
The continent of Africa has the largest and youngest population on the planet - with 60% of the current population being under the age of 25.
Why does it matter??As the Nigerian economist and philanthropist Tony Elemelu puts it “Young entrepreneurs and those they inspire are the lifeblood of Africa’s rise”. If one bears in mind that current UN predictions are for a further 1.4 billion Africans by 2055, then it’s possible to really begin to believe that these waves of young tech-savvy, innovative, urbanised workers and consumers could indeed be the natural resource that will, ultimately, enable this remarkable continent to address its sustainable development challenges, and will play the key role in driving seismic changes to social and economic strength and inclusivity.?
Want to know more??On Thursday 8th December, while the members of the Wallop Koala webcomic platform will be celebrating “National Pretend to be a Time Traveller Day”, the members of the Fat Gladiator Investment Club will be meeting the management of?Jumia Technologies?(JMIA) – a $430mn market-cap NYSE listed Nigerian company whose rapidly growing e-Commerce, mobile payments and logistics businesses put them absolutely at the confluence of these transformational forces.?
If you are not yet a member of the club, please don’t worry and certainly don’t stop reading – we will be releasing content and insights from the meeting to our broader subscriber base in the coming weeks as we continue to track this hugely important trend.?
Insights.
Here are a few other snippets...
Close to 90% of financial transactions in Africa are still conducted in cash. However, in 2020-2021 alone, the number of tech start-ups tripled to 5,200 new companies – with just under 50% of those being in the fintech space;??McKinsey?estimates that Africa’s financial services market will grow at 10% per annum to reach revenues of $230bn by 2025.?
GSMA?estimates 20 million new mobile subscribers per year, leading to 613 million users by 2025 (50% of the total population of the sub-Saharan region). In 2021, mobile technologies and services generated over 3.2 million jobs, c$140bn of economic value and over $16bn in taxes – GSMA predict that economic value to reach $155bn with commensurate increases in employment opportunities and tax revenues.?
The same GSMA study draws attention to the significant focus on initiatives to drive social change – with firms such as Orange and Safaricom leading the way in social initiatives aimed at providing solutions for the visually impaired; at closing the digital gender gap so as to empower women in rural areas and also at training young people to work in the mobile and other tech industries.?
E-Commerce, particularly in the consumption of fashion and electronic goods, is growing fast – with?Statista?predicting 520 million online shoppers by 2025 – almost doubling the number from 2019.?
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Macroeconomics Masterclass
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Dr Savvas Savouri is Chief Economist and Partner at Toscafund Asset Management.
Savvas has decades of experience in capital markets finance, tutorships at Oxford and Moscow universities and has authored various academic papers in peer-reviewed journals – he is a truly prominent voice and recognised expert in the economic implications of inflation, unemployment, FX and Brexit.
We’re extremely fortunate to have Savvas help us navigate the current macro environment and look forward to the invaluable insights that will help us to position and protect our investment portfolios.
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Enter?Axon, a non-lethal weapons manufacturer whose stated objective is to make the bullet obsolete. As police reform sweeps over America, with many calling for the defunding of the police force, it is likely that major focus will be placed on the use of non-lethal force and Axon remain at the forefront of this paradigm shift.
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Renewables are projected to play a significant role in the future global energy mix. The ability to store electricity when the sun doesn’t shine and the wind doesn’t blow will be critical to getting the best out of intermittent energy sources.
Freyr?is at the cutting edge of advanced battery solutions, paving the way for green energy storage systems.
With net-zero tailwinds behind it, we will hear how the company is well-placed to benefit from the exponential rise in EVs and renewable energy.