Everyone is watching China and those of us in Miami are always focused on Latin America. With my work for OLPC I have been following Africa for the first time in my career. In the next 10-20 years I think that Africa could emerge as the new darling in emerging markets. My logic is in part based on these facts:
- Angola is the fastest growing economy in the world at over 10 percent per annum
- Demand for natural resources will increase dramatically over the next 10-20 years, which will benefit the resource rich continent of Africa
- China is investing large amounts of foreign aid in infrastructure in Africa
- Sources of capital are starting to focus on Africa, as evidenced by the FT report that Carlyle is setting up a private equity fund for the continent
Keys to the success of Africa will be whether it can develop its human resources and a middle class. Education and health services will be the important requirements to achieve these two objectives.
Interesting fact: Africa is a larger land area than China, the U.S. and Europe combined.
