No false dawns – Africa is on the rise

By Devan Pillay, Cluster President, Anglophone Africa at Schneider Electric

“The continent is too large to describe. It is a veritable ocean, a separate planet, a varied, immensely rich cosmos. Only with the greatest simplification, for the sake of convenience, can we say ‘Africa’. In reality, except as a geographical appellation, Africa does not exist,” said Ryszard Kapuściński, famed Polish photographer and journalist.

Africa continues to capture the imagination of continental counterparts, and with good reason, apart from its astounding beauty it is also a place of hope, growth and progress.  It is also this growth that is seeing the continent taking its place amongst the powerhouses of this world.

In a recent report by the African Development Bank Group, it was stated Africa is set toaccount for eleven of the world’s fastest-growing economies in 2024.  Furthermore, the continent will remain the second-fastest growing region after Asia. This is an encouraging statistic and undoubtedly reinforces that Africa is set for an exciting growth trajectory.   

If we look closer at the regions, East Africa will continue to lead Africa’s momentum, with its growth projected to rise to 5.1% in 2024 and 5.7% in 2025. In West Africa, the growth is projected to pick up to 4% and 4.4% in 2024 and 2025 respectively.

The driving forces

 Datacentres on the rise

From a Schneider Electric perspective, we are particularly excited about a number of growth drivers that enable us to provide true value to the continent, and one standout market is datacentres. The proliferation of mobile telephony and the burgeoning demand for cloud computing and storage have positioned Africa as a lucrative market for hyperscale companies.

These companies recognise the continent’s potential, driven by its youthful population and robust population growth, which outpaces much of the world. This demographic dividend translates into a tech-savvy society with a burgeoning appetite for data.

Historically, South Africa has been the primary destination for datacentres, however recent key acquisitions and geographic favourability have seen the datacentre marketplace extend to include Angola, West Africa, and East Africa and beyond.

Further bolstering the datacentre market’s growth is the feasibility of prefabricated modular datacentres. These structures offer a rapid deployment solution, essential for keeping pace with Africa’s fast-growing digital infrastructure needs.

Prefabricated modular datacentres can be manufactured and installed up to 40% faster than traditional brick-and-mortar facilities, providing a plug-and-play solution that meets the immediate demand for data storage and processing.

A sophisticated F&B market

The Food and Beverage (F&B) has shown tremendous resiliency and is expected to exceed$1 trillion by 2030. This surge is fuelled by factors such as a burgeoning population, thriving economies, and the emergence of a wealthier middle class.

At Schneider Electric, we’re also seeing an increasing need to monitor and track this industry to allow for real-time insight into the supply chain.

Like its counterparts across the globe, the African population is becoming ethically savvy and requires transparency (on the origins of their food), pushing companies to adopt traceability technologies that ensure the authenticity and quality of their products.

Our value proposition is significant and our platform offers comprehensive visibility into the supply chain from farm to fork if you will.

Biopharma rises to the challenge

Last but certainly not least, is Africa’s biopharmaceutical sector which is expected to reach $34 billion by 2027. Companies are increasingly investing in the continent, driven by the population’s demand for better healthcare and the need for local manufacturing capabilities.

The COVID-19 pandemic highlighted the importance of resilient and accessible healthcare systems. Investments in biopharma are not only about meeting current healthcare needs but also about building capacity for future challenges, ensuring that Africa can produce essential medicines and vaccines locally.