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Economic profile of Nigeria and Africa

As part of its economic profile, Africa is the second largest continent in size and population, while Nigeria is the largest economy and most populous country in Africa.

Africa is also the youngest of the continents by far, with a median age of 19.7 years for its 1.3 billion inhabitants in 2020.

According to a report by The Economist, sub-Saharan Africa‘s population is growing at a rate of 2.7 percent per year, which is more than double the population of South Asia (1.2 percent) and Latin America (0.9 percent).

At the current rate of growth, the continent’s population will double by 2050.

Africa’s younger population represents a significant opportunity for growth in demand for agricultural products.

Also, according to MICT, this younger generation is being born into a “networked” world and is more comfortable using technology to achieve their goals.

MICT is a financial technology business primarily focused on growing and developing a suite of consumer financial technology services in approximately 130 cities in China, with planned expansion into other markets.

Economic profile

In addition, African governments are increasingly focused on improving business conditions for entrepreneurs and small businesses on the continent.

The World Bank’s Doing Business ranking in sub-Saharan Africa has improved by approximately 20 points: from 45 in 2004 to 65 in 2020.

MICT projects that this trend is likely to continue and encourage the creation of new businesses in various economic sectors, including agriculture.

Foreign Direct Investment (FDI) in African countries reached a record $83 billion in 2021, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2022, released on June 9.

This was more than double the amount recorded in 2020, when the Covid-19 pandemic weighed heavily on investment flows to the continent.

Despite strong growth, investment flows to Africa accounted for only 5.2% of global FDI, down from 4.1% in 2020.

FDI in Africa will likely continue to help address significant infrastructure constraints and create value in the agricultural sector.

Nigeria, in particular, is critical to the continent’s growth. According to an Oxford Business Group 2021 report, agriculture accounts for 14% of sub-Saharan Africa’s total GDP, and the majority of the continent’s population works in the sector.

Agriculture is therefore central to the livelihoods of Africans, as many sub-Saharan Africans are smallholder farmers and the FAO estimates that Africa holds 60% of the world’s uncultivated arable land.

 

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