Africa’s 10 next biggest cities to excite foreign investors – PwC report

Africa’s 10 next biggest cities to excite foreign investors – PwC report

PricewaterhouseCoopers (PwC) said in a recent report that there are 10 biggest cities of the future in sub-Saharan Africa that will attract and excite foreign investors.

The PwC Global Economy Watch report, which puts the spotlight on the largest cities in sub-Saharan Africa, cites, among others, Dar es Salaam (Tanzania), Luanda (Angola), Lagos (Nigeria), Kinshasa (DR Congo), Nairobi (Kenya) and Johannesburg (South Africa).

The population of these cities is projected to almost double by 2030 growing by around 32 million people, the report said in line with the United Nations projections which said that by 2030 two of the ‘Next 10’ – Dar es Salaam and Luanda – could have bigger populations than London has now.

Cities are the typical entry points for businesses trying to expand into new overseas markets, because they enable closer interaction with customers in a relatively small geographic space, which in turn helps contain distribution costs, PwC said in its report.

Stanley Subramoney, strategy leader of PwC’s South Market Region, said: “The report projects that economic activity in the ‘Next 10’ cities could grow around US$140 billion by 2030. This is roughly equivalent to the current annual output of Hungary.”

Dr Roelof Botha, economic advisor to PwC, said: “In addition to the trends with regard to high rates of GDP growth, rapid urbanisation and the so-called demographic edge that sub-Saharan Africa possesses, a number of other economic phenomena in the region are starting to appeal to the global investment community.”

However, the report cites the following three challenges it said could slow the pace of growth of these cities:

•   Low quality of ‘hard’ infrastructure like roads and railways

•    Inadequate ‘soft’ infrastructure like schools and universities, and

•    Growing pains arising from political, legal and regulatory institutions struggling to deal with a bigger and more complicated economy.

(From PwC, final editing by Issa Sikiti da Silva)

Photo: The city of Johannesburg (South Africa) at night.

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One Response to Africa’s 10 next biggest cities to excite foreign investors – PwC report

  1. NoelOmolloOkello August 18, 2014 at 12:52 pm #

    Pegging future foreign investment inflows in sub-Saharan Africa to urban population growth alone is grossly simplistic. Cities in Africa are getting glaringly more unequal and are going to host massive poorer populations that cannot afford much of the glitzy but empty promises of large infrastructure projects.