This webinar will elaborate on the global analyst briefing, "Global Economic Outlook 2014" and further provide in-depth insights of the current economic state, as well as challenges and opportunities on the African continent. Industry sectors that will be covered include: Chemicals Materials and Food, Information and Communication Technologies as well as certain Industrial sectors, such as Energy and Environment.
In order to take advantage of the untapped potential in these markets, businesses will need to consider the role that the growth dynamics in these economies will play in shaping strategic plans for 2014 and beyond.
An overview of sectors facing the biggest challenges and those that are ripe with opportunities for growth and expansion into Africa will also be discussed.
Why You Should Attend:
• Understand key hotspots driving growth in 2014 • Identify how the current economic state will affect your industry • Learn from best practices and successful case studies to take advantage of growth opportunities in 2014
Click the below link to access the on-demand recording. http://www.frost.com/prod/servlet/analyst-briefing-detail.pag?mode=open&sid=288760337
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AFRICA ECONOMIC OUTLOOK:INSIGHTS SHAPING YOUR INDUSTRY IN 2014
AFRICA ECONOMIC OUTLOOK:INSIGHTS SHAPING YOUR INDUSTRY IN 2014
PRESENTERS
Mani James
Operations Manager
Craig Parker
Senior Economic
Consultant
Cornelis Van Der Waal
Business Unit Leader,
Energy and Power Systems
Kholofelo Dzvukamanja
Programme Manager,
Chemicals, Materials and Food
Ian Duvenage
Head of ICT, Africa
WEBINAR
3
Global Overview and Trends
Mani James
Operations Manager
4
African Growth Outlook
Global Mega Trends and its Relevance
What is a Mega Trend?Mega Trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives.
Urbanisation – City as a CustomerSmart is the New GreenSocial Trends
Connectivity and Convergence
Bricks and Clicks
Innovating to Zero
New Business Models: Value for ManyBeyond BRIC: The Next Game Changers
Future Infrastructure DevelopmentHealth, Wellness and Well BeingFuture of Mobility
5
African Growth Outlook
Mega Trends that will Impact Africa
Low Degree of Certainty
Deg
ree
of
Imp
act
on
Afr
ican
Eco
no
my
Lo
wH
igh
High
Urbanisation
Responsible Revolution
Space Jam
Connecting the Unconnected
Innovation to Zero
Infrastructure Development
“Value for Many” Business Model
M-Health
Devices
E-Governance
Note: The size of the bubble represents the scale of opportunity within each Mega TrendThe Mega Trends have been plotted based on quantitative and qualitative reasoning
Renewable Power
Regional Integration
Invest Africa
The Middle Bulge
Source: Frost & Sullivan.
6
African Growth Outlook
Outlook and Implications for Global Growth
Europ
ean
Union
Centra
l and
Eas
tern
Eur
ope
Develo
ping
Asia
ASEAN-5
Latin
Am
erica
and
the
Caribb
ean
Midd
le Eas
t and
Nor
th A
frica
Sub-S
ahar
an A
frica
United
Sta
tes
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
0.0
2.3
6.3
5.0
2.7
2.1
5.0
2.3
1.3
2.7
6.5
5.4
3.1
3.8
6.0
3.1
2013 2014
GD
P G
row
th (
%)
GDP Growth Prospects for 2014
Note: Developing Asia composed of 29 countries including China. ASEAN-5 comprises Indonesia, Malaysia, Philippines, Thailand, and Vietnam. Sources: IMF and Frost & Sullivan
Fixed Investment to Drive Growth in Emerging Economies
FDI Inflow into Africa Is Expected to Double in the Next 7 Years
19.1bn
36.8bn
2006
2013
56.5bn
2001
Sources: World Bank, United Nations and Frost & Sullivan
11
African Economic Outlook
Risk Factors to African Growth in 2014
• Dependence on oil and commodity prices
• Capital flight vulnerability
• Export markets and high dependence on Asia
• Macroeconomic instability
• Political instability
Devel
opin
g Asia
Latin
Am
erica
and
the
Carib
bean
Sub-S
ahar
an A
frica
-20.00
0.00
20.00
40.00
60.00
80.00
100.00
120.00107.256
31.445
9.677
38.457 38.801
-0.113
2012 2013
Ne
t P
ort
folio
Flo
w (
$ B
illio
n)
Net Portfolio Investment Flows, Developing Asia, Latin America and Sub-Saharan Africa, 2012 and 2013
Sources: International Monetary Fund and Frost & Sullivan
12
African Economic Outlook
Drivers of Growth in 2014
• Expansion of construction and infrastructure investment
• Agri-processing
• Retail and investment into new malls
• Policy certainty
Nigeria
Zambia
Ethiopia
DRC
Ghana
Countries with High Growth and Investment Potential in Sub-Saharan Africa, 2013-2015
Africa to Average 4.8% GDP Growth in
2013
South Africa
Gabon
Note: Countries based on score determined from weighted average of per capita GDP and potential growth, GDP & GDP potential growth, FDI stock and growth, political stability, export and import growth potential, and population size and population growth potential
Mozambique
Kenya
Source: Frost & Sullivan
13
Energy & Power
Cornelis Van Der Waal
Business Unit Leader,
Energy and Power
Systems
14
African Economic Outlook
Energy and Power - Growth Drivers in 2014
• Signing of Oil & Gas agreements
• Public-Private Partnerships
• Commissioning of Mega-Projects
• Regional ProjectsPPP Activity
Oil & Gas Chase / Agreements
Mega Projects
Key Growth Drivers
15
African Economic Outlook
Energy and Power – Investments are Happening
68 GW
Installed Capacity
90 GW +
Confirmed Oil and Gas Reserves
719
2014 2020
2000 2014
16
African Economic Outlook
Energy and Power – Predictions for 2014
• Increased competition
• Partnership opportunities
• Project and products diversification
• Sustainable green projects
Key Countries to Watch in 2014
Opportunity Map
Key Countries to Watch till 2024
17
Chemicals
Kholofelo Dzvukamanja
Programme Manager,
Chemicals, Materials and
Food
18
Sources: IMF and Frost & Sullivan
• Mature South African market?
• Economic diversification?
• Sectors driving demand growth for chemicals
• Oil and Gas Development and Mining
• Construction and Infrastructure Projects
• Other Growth Areas
• Agriculture
• Consumer Products
DRC
Note: Countries based on score determined from weighted average of per capita GDP and potential growth, GDP & GDP potential growth, FDI stock and growth, political stability, export and import growth potential, and population size and population growth potential
Increasing Urbanisation Infrastructure Development
Countries with High Growth and Investment Potential in Sub-Saharan Africa for Selected Chemicals Markets, 2013-2015
Africa Economic Outlook
Increasing Urbanisation and Infrastructure Development
19
Sector Sector developmentsOverall
Attractiveness
Oil and Gas
• Development of new gas deposits in Mozambique,- largest discovery globally in the last decade
• Key countries: Nigeria, Libya, Algeria, Angola , Sudan , Egypt • New discoveries: Mozambique, Ghana, Tanzania, Kenya• Angola new refinery by 2018 – planned output 200 thousand barrels per day
Mining• South African outlook still unstable in the short to medium term• New technologies to extend mine lifespan, increase operation efficiencies• Recovering global economy supports commodity prices
Construction and Infrastructure
• Providing products and expertise to key projects across the continents• Slowed growth in South Africa• Increased investment into local manufacturing of inputs
Agriculture
• Accounts for 15 % of the continent’s total GDP• Largest cocoa producer Cote d’Ivoire; Ghana and Ethiopia amongst key growth
countries• Highly fragmented production, Low penetration of crop protection and fertiliser
products
Consumer Products • Relatively small manufacturing base • Fast growing middle income population group
Africa Economic Outlook
Long Term Outlook is Positive For 2014
Low HighMedium
20
Africa Economic Outlook
New Market Expansion by Sector
Source: Frost & Sullivan
• New market focus
• Selection of industry specific new growth markets
Summary of Key Market Growth Opportunities across Sectors, SSA, 2014
Crop Protection> US$2 billion
Fertilisers
>US$5 billion
Oil & GasUS$130 billion
investment opportunity in infrastructure
Paints and Coatings
>US $2 billion
InfrastructureUS$ 500 billion
ManufacturingUS$130 billion
Water Infrastructure &
TreatmentUS$22 billion
required to upgrade Africa’s water infrastructure
21
Information and Communication Technologies
Ian Duvenage
Head of ICT, Africa
22
Africa Economic Outlook
ICT - Nexus of Cloud Computing, Big Data, Mobility and the Internet of Things
Rise of Apps
Internet of Things
Rise of Cloud and Big Data
Ubiquitous Wireless
Cloud allowing access to content on any device in any location. Big data enables value to be extracted out of exponential increase in data.
WiFi, 3G & LTE becoming standard connectivity modes.
Cloud and mobility driving the emergence of apps which can be used on any IP enabled device.
IPv6 driving proliferation of IT enabled sensors/devices across industry-specific activities.
2
3
4
1
Industry Verticals
23
Africa Economic Outlook
ICT – Big Data Gets Bigger
Computing Power Vendors
End Users
Storage Vendors
Acquisition Management Processing
Analytics Application Developers
Application
Communications Providers
Integrated Platform
The Big Data value chain begins with initial data collection, continues through data management and processing, and then proceeds to end-user application.