Benefits of Partnership

Africa is often referred to as ‘Investing’s Final Frontier’. This is mainly due to the fact that, many entrepreneurs to date have ventured into Africa and made millions of dollars (and in some cases, billions – Mo Ibrahim, Strive Masiyiwa, Patrice Motsepe), the vast business opportunities on the continent remain largely untapped. The Johannesburg summit on Technology and Digital Submit will not only unlock unprecedented business investment opportunities but will also act as a catalyst for innovation, research and entrepreneurial mindset.

For Sponsors and participants,Johannesburg summit will act as a launching pad for their next phase of growth and collaboration – because of so many reasons as below.

  • The growth of essential services like banking, Health Care and internet access are leading to long term investment opportunities and increased international focus on servicing the African consumer.
  • According to Harvard Business review: From 2002 to 2007 the average annual return on capital of African companies was 65% to 70% higher than that of comparable companies in China, India, Indonesia and Vietnam.
  • HSBC says: ‘Reforms and a more stable political backdrop are improving infrastructure and increasing capacity and productivity, driving investments and reforms.’
  • African consumers are benefiting from improved governance, fewer wars, and high commodity prices. And the continent, with a population close to one billion young people, with low levels of individual debt, has no shortage of potential buying power.
  • The appetite for Africa’s raw materials from the robust economies of emerging markets, such as India and China, is fuelling a boom in prices. This boom has stimulated widespread developments in transport, infrastructure and telecommunications.
  • Young demographics. Compared with other regions of the world, Africa has a much younger median age, which means African governments aren’t as burdened by elderly populations and pension plans. This translates into a young, vibrant workforce.
  • Attractive valuations. The average price-to-earnings ratio for African companies is about 8 to 9 percent compared with the S&P 500, which has an average P/E ratio of about 15 or 16 percent.
  • Africa’s middle class is growing and so is their demand for consumer goods, mortgages, education, entertainment etc. This segment is rapidly becoming a gold mine for many local and foreign businesses.