Featured Work
TAG and Ai Examine the Continent's Agricultural Potential
In the March/April 2011 issue of Africa Investor magazine, TAG and Ai collaborate to study the potential of the agricultural sector. As a follow-up to the seminal Wealth Cheque, this article illustrates the significant potential of the sector, and outlines actionable steps that can be taken to facilitate growth and capitalize on investments. Utilizing all arable land, agricultural assets can be valued as over $1.1 trillion.
For full access to the article,
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Africa's Tourism Potential Examined
The Africa Group, in partnership with Africa investor (Ai), published an in-depth look into Africa's tourism potential in the Jan/Feb issue of Ai. TAG-Ai's previous "thought experiment" outlined within the Africa Wealth Cheque discovered the continent's total tourism sector could top $254bn from its current level of $54bn if it took full advantage of its natural endowments. TAG Partner, Matthew Thompson outlines a few high-impact short and medium term strategies that investors and policymakers should consider to close the gap between potential and reality.
The Africa Group advises investment and government entities on effective FDI promotion strategies, market-entry advisory, and cross-border trade practices.
For full access to the article,
please click here (844.5 KB)
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The Africa Wealth Cheque
The Africa Group teamed up with Africa Investor (Ai) Magazine in the July/August edition of Ai to produce the seminal Africa Wealth Cheque. The report’s innovative analysis investigates the continent’s wealth in terms of full annual potential “production” under a parallel Africa scenario (the “current untapped”, defined as the extra amount beyond current annual production that would be possible under a more aggressive but feasible Africa”). The conclusion comprehensively indexes the actual vs. potential market sizes of agriculture, tourism, water, forestry, fisheries, energy minerals and human capital.
This thought-experiment clearly displays the potential returns that are achievable in Africa today. Because significant wealth can be generated leveraging current available assets, new capital may be focused on growth as opposed to the development of new assets.
The Wealth Report identified US $1.7 trillion of potential wealth and additional production potential in six key sectors (agriculture, water, fisheries, forestry, tourism and human capital). This represents a combined market size today of $909 bn and $762 bn of additional potential production.
The report also estimates current proven stocks of extractable energy resources in Africa (oil, natural gas, coal, and uranium) to be worth between $13-14.5trn. To access the pdf version of the published article
please click here (258.0 KB)
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To access a sector-by-sector breakdown of our analysis with details on the associated methodology used
please click here (1000.0 KB)
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The Africa Group in Reuters
JOHANNESBURG | Thu Jul 1, 2010 1:10am IST
(Reuters) - Africa has $1.7 trillion of potential wealth and production in areas such as agriculture, tourism and water, a study showed on Wednesday, pointing to new investment areas that stretch beyond commodities. The study by investment research firms Africa Investor and The Africa Group said the potential represented an additional market size of $762.4 billion.
GDP in Africa, one of the fast-growing regions in the world, has been boosted by its vast natural resource wealth in recent years and new partnerships in other sectors could also lift growth. A McKinsey Global Institute study says Africa's strong growth will continue at a rapid pace and investors and businesses cannot afford to ignore the continent's potential, which goes far beyond commodities. "At the highest level, Africa is similar to any other private investment ... investors must take on risk to pursue an addressable market opportunity," The Africa Group said.
The study also estimated stocks of extractable oil, gas, coal and uranium to be worth between $13 trillion to $14.5 trillion. (Reporting by Tiisetso Motsoeneng; Editing by Dan Grebler)