The states of Sub-Saharan Africa have begun restructuring their economies and are well positioned to take full advantage of the new phases in the globalization process. This region of the world presents enormous opportunities for investors, thanks to its natural resources, growth potential, diversifying economies and improving governance. West Africa is following this trend. West Africa is the region covered by the Economic Community of West African States (ECOWAS), which comprises 15 countries and extends over 6.14 million square kilometers. ECOWAS accounts for 26% of Africa's GDP and 32% of its population.
Natural resources
and opportunities
Natural resources and opportunities
West Africa's wealth of natural resources makes it an ideal partner for growing economies. Since the acceleration of growth in certain regions such as India and China, exports of raw materials have increased significantly.
Exit routes
for investors
Large consumer bases
West Africa is home to over 340 million people. These populations have multiple needs in terms of goods and services. Penetration rates in sectors such as mobile telephony, banking and electrification are still relatively low. As a result, any venture targeting the bottom of the pyramid in the region has a good chance of success. What's more, economic growth over the past decade has led to an expansion of the middle class, which is a major consumer. Ghana and Nigeria, which account for 61% of the ECOWAS region's population and 81% of its GDP, are typical examples of this dynamic.
Exit routes
for investors
A safer investment climate
The business and investment climate has steadily improved, thanks to efforts made at institutional level. The creation of the Organization for the Harmonization of Business Law (OHADA) in 1995, for example, is one of the factors that have contributed to a more secure business climate in West Africa. Similarly, the publication of the “Ease of Doing Business” ranking has led to a series of reforms designed to make countries more attractive to foreign investors. All these changes are leading to an increasingly secure investment climate.
Wide choice
of projects
Under-invested region
The gap between the perception of risk and the reality on the ground offers the most proactive investors a tremendous opportunity to gain access to many highly profitable projects.
Exit routes
for investors
Exit routes for investors
Africa currently has 23 national and 2 regional stock exchanges. These instruments offer investors a choice opportunity in defining their exit strategy.