To provide needed guidance, KPMG LLP’s High Growth Markets Outlook has identified not only the HGM opportunities and obstacles, but also the key drivers of success of HGM operations. The survey uses responses and qualitative answers from executives with operations in HGMs as well as from discussions with KPMG practice leaders in and for individual countries to identify both the opportunities and the challenges that companies face in HGMs. Most importantly, the outlook uses this hands-on experience to identify strategies that companies can use to mitigate risks and to overcome challenges in HGMs.
Africa has 6 of the 10 fastest growing economies that are going to be the future China and India. There are significant challenges in Africa, but companies that do not invest now will likely miss out when these countries overcome these challenges over the next 10 years. There is also a significant opportunity for the private sector to contribute and influence the development of these markets by using their products and expertise. For e g the Projected planned investments in 2013:
- Egypt: 2%
- Nigeria: 1%
- South Africa: 5%
Projected planned investments in 2014:
- Egypt: 1%
- Nigeria: 3%
- South Africa: 8%
There’s indeed a significant increase for investment in emerging countries such as Nigeria and South Africa. Frontier markets, such as Nigeria and Kenya look to see both significant growth and investment, as executives are seeking opportunities in an expanding range of frontier markets.