2024 is deemed as, “a memorable year for humanity” by experts around globe. Experts in finance, economics, and religion predict a swift breakdown of traditional norms and belief systems amid the chaos that is expected on the global economic and sociopolitical fronts. As people from all walks of life will be seeking more authenticity, community, serenity, and purpose in their everyday lives.
This is the background that will shape African business trends in 2024. Let’s delve in:
Trend 1: Everything ‘intra-African’ will intensify
As global banking and financial supply chains, and enterprises face a variety of obstacles, Africa will increasingly look inward for products, services, and markets. I anticipate this will accelerate significantly in 2024 and beyond. Businesses should immediately alter their products and services in preparation of these changes: Despite widespread inflation and economic issues, many industries will see a rise in commercial activity and demand from inside the continent, ranging from intra-African commerce to regional tourism, and from stimulating investments to diversifying revenue sources across borders.
Trend 2: The world’s wealthy people are looking to emerging markets
It is currently unfolding. Those who can afford it are leaving the West in droves. Or, at the very least, they are eager to diversify their revenue sources by investing in new markets. While South America and East Asia are popular travel destinations, more people are looking for alternatives in Africa. While total foreign direct investment in Africa may fall in 2024, small and medium-sized businesses functioning on the African continent in sectors such as real estate and construction, tourism, the hospitality industry, events and meetings, and financial and business services can create unique offerings for a new group of buyers, including Africa’s immigrant diaspora.
Trend 3: The need for security products and services will grow massively
Amidst economic and sociopolitical instability, we have another unusual circumstance occurring in Africa in 2024 that may provoke conflicting feelings for you: Bloomberg reports that 18 African states will vote in 2024, with over 60 countries participating worldwide. Inflation, debt defaulting economies (Zambia, Ghana, and Ethiopia), rising political extremism, and failing family economies all contribute to increased crime, unrest, and violence. As a result, demand for security goods and services is likely to rise dramatically.
Trend 4: Balance, genuineness, and long-term viability will be Africa’s offerings
Well, there is a cure to disorder: the search for harmony and balance. This is a mixed trend, with both ‘public sector led’ and ‘consumer driven’ components. I will start with the latter. Consumers all throughout the world, and especially in Africa, are yearning for more peace, authenticity, ethics, and sustainability, and we should anticipate this trend to continue despite the upheaval. This will have an impact on African goods, brands, and service offerings in sectors such as tourism, entertainment, cuisine, fashion, real estate, and minerals.
Trend 5. Strategic business decisions will convert disaster into profits
For those corporate executives who have not yet taken action, 2024 is not a year to be complacent and go on business as usual. Many enterprises in Africa will not survive the year. If your company has a complex structure, works on low profit margins with high (foreign currency) expenditures, or simply lacks an adaptation plan, you are more likely to struggle or fail. Many enterprises in technology, manufacturing, import, transportation, and non-essential services may fall into this group.
So far, it appears like Africa is once again at the mercy of global trends over which no one seems to have any influence. Africa now offers all the rest of the world lacks, including enormous untapped natural resources, a pool of rising economic prospects, and an energetic young workforce capable of driving economic progress.
