Budget 2017: OPINION
INNOCENT DUTIRO: Africa growth search
The race for Africa’s insurance market depends on the ability to integrate insurance with mobile networks, writes Innocent Dutiro
With predicted growth rates of 4%-10% for many African economies, foreign investors are streaming into Africa, enticed by the prospect of an emerging middle class. Even though per capita GDP is low in many African countries, the sheer volume of underserviced people is enormous. Demographics are also a huge driver. Europe’s population is skewed to older people; while Africa’s younger population offers a market that will require servicing for decades. As investors in Africa, SA companies compete with those from all over the world. For large foreign investors, the small scale of potential investment in Africa is the biggest challenge, followed by an unfamiliar culture. This gives SA a competitive advantage. Without the expense of establishing headquarters in Africa, local firms can support smaller investments and are also able to develop Afrocentric teams that are more likely to understand local cultures. For the SA insurance industry, diversification into Africa is an obvious growth p...
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