Growth is coming off a very low base, setting the table for what could be years or even decades of rapid economic progress.Africa’s business framework is modernizing and creating opportunities. Overall, Africa’s infrastructure grid—roads, bridges, power—is in massive need, but that represents a $1 trillion investment prospect.Paradoxically, infrastructure gaps have spurred innovation in African mobile-phone technology, including Safaricom’s M-Pesa service, redefining banking by making phones all-in-one credit cards, ATMs, and money-transfer devices.
Africa’s growth is attracting record levels of global investment, including China’s largest sum to anywhere in the world. Tourists leaving Kenya’s Jomo Kenyatta Airport now pass a sprawling landscape of cranes, machinery, and workers building the Chinese-financed, 16-lane Thika Road superhighway. American companies are also making strategic moves. Over the last two years Walmart completed a $2.4 billion acquisition of South African retailer Massmart, IBM announced a $1.5 billion investment in African-focused technology company Bharti Airtel, and U.S. private-equity giant the Carlyle Group launched a sub-Saharan Africa investment practice.