Why Steve Down is Investing Heavily in the Continent of Africa
A few years ago, during the onset of Covid-19 pandemic, as many already know, Steve Down made a decision that came as a surprise to many that know him as great entrepreneur. The founder of Even Stevens Sandwiches has increased his visits to Africa as he continues to launch a number of projects and investments in the continent and two years down the line, Steve Down’s investments in the continent seems to be making good returns.
In one of the recent events organized in Nairobi Kenya by Steve Down’s friends, Steve Down opened up and discussed why he made the decision especially at an unprecedented season. Here is what he had to say;
1. Africa has a young and growing population
Africa currently has over 1 billion people. The UN’s demographic projections indicated that almost 60% of Africa’s population in 2019 is under the age of 25, making Africa the world’s youngest continent. The median age in Africa in 2020 is 19.8. While the rest of the world is aging, Africa is having a young population. This implies that even though the global workforce is reducing, Africa’s workforce would be about 1.1 billion, which is more than that of China and India. The young demographics could be a sign of economic strength. Also, young Africans like to consume the latest products, services, and technology which will generate profit for the investor.
2. Customers are changing
Steve Down noted that Africa’s middle class is growing thereby leading to the creation of new expectations and a change in consumption. According to the World Economic Forum (WEF), the young African who is in the middle class is young, brand-aware, and sophisticated in terms of their consumption. This means that international retailers and consumer brands can capitalize on the demands and preferences of these Africans and invest in the continent.
3. Diverse and stronger economies
Previously the economies of African countries relied heavily on agriculture and the available natural resources. However African economies are now diversifying beyond commodities. The skills development of Africans to venture into sectors that previously had no or few Africans is also helping diversify the economy. African countries are also focusing on non-commodity areas where they can be competitive. Every country in Africa now has what they call “Investment Promotion Agencies”, which act as one-stop shops for investors, assisting with registration, taxes, and other steps to establish companies locally.
4. Digital transformation
Africa is a leader in mobile adoption. Mobile money networks which started in East Africa opened the global economy to the unbanked city and rural dwellers. The use of technology in Africa now is on the rise. Examples include Olam using mobile to reach new African suppliers and farmers and mPharma harnessing technology to remove the inefficiencies and price fluctuations that prevent prescription drugs from reaching sick people.
Steve Down urged his fellow investors to join him for the good course of transforming the continent of Africa as the move not only benefits them but Africans especially.