By 
Investors and venture capitalists alike are showing growing interest in Africa, a continent that boasts a consumer market of over one billion. With improved policies and regulatory environments and some stability in most parts of the regions, Africa is well positioned to successfully participate in the global economy.
Participating at the World Economic Forum (WEF) in Davos, South Africa, as the former G20 President in 2025, gave a report to the Forum on some of the achievements in Africa. The Minister for the Department of Trade, Industry and Competition (DTIC), Mr Parks Tau, told the WEF that Africa is now well positioned in the globe and ready to receive investment.
Tau said there are a significant number of youth led start-up businesses, which are attracting global venture capitalists into the continent. He said both traditional investors and venture capitalists are showing strong interest in Africa’s growth potential and their desire to expand on the continent.
“Africa is central to the global race for critical minerals, holding an estimated 30% of the world’s proven reserves in Sab-Saharan Africa alone. As demand for energy transition and advanced manufacturing grows, Spring Davos highlights Africa’s rising strategic role in the global economy,” said Tau.
Africa is increasingly growing and becoming an attractive investor destination for multi-national companies and countries. Minister Tau said the growths of the continent is attributed to a number of factors, these include:
Fast growing companies in fintech, digital services, renewables, logistics, agri-businesses and creative industries. Second to that, Africa is emerging as a major digital and data market, with its scale diversity and cultural richness uniquely valuable data sets. Thirdly; Africa’s population is estimated to reach about 2.4 billion in 20250 with a rapidly expanding middle class.
According to Tau, this makes Africa the single largest growing market of the future demand for energy, mobility, housing, food systems, financial services, education and digital connectivity with long-term opportunities across the global value chains.
Coming in fourth is the continent’s young population, Africa is a relatively young continent boasting the largest youth in the world, this promises future human capital, fresh ideas and entrepreneurial activity, energy, innovation in services platforms and cultural industries.
Fifth, Minister Parks Tau highlighted the investment opportunities in the content, he said though foreign direct investment remains at a low, relative to its potential, the trend is improving.
“Investor perceptions are evolving as companies gain deeper on the ground experience and the macro-economic reforms take hold across many countries, as investment rises, trade will follow. The African Continental Free Trade Area, covering a market of 1.3 billion people is a critical pivot reducing fragmentation, supporting regional value chains, and positioning Africa more effectively within global trade and production networks,” said Parks Tau.
Lastly, the Minister said Africa is home to 60% of the world’s Arab land, vast critical mineral resources for the green transition, rapidly expanding mobile and digital penetration, and a growing number of reform orientated economies. He said these resources make Africa central to the global growth.
