The diversity of African countries makes it possible to invest in different sectors according to the needs of each of them.
Spain’s commercial relations with Africa, although changing over time, the truth is that they have been increasing in recent years, since many Spanish companies have seen and see in the African continent a magnificent opportunity to develop and diversify their business in a very large and rapidly expanding market, so that it is very possible not only to increase investment and trade in countries with which Spain currently has excellent relations, such as Morocco, but also in others such as Angola , Mozambique or Gambia.
A land with more than a billion people, with the youngest populations in the world and a territory rich in resources, together with a progressive improvement in the political climate and the institutional framework, presage an exponential growth of African countries in the coming years In fact, the Doing Business study, prepared by the World Bank in 2019, indicated that five of the ten economies globally that had experienced the greatest progress were African —in 2021 their GDP grew by 6.9%, and in 2022, even with the effects of the war in Ukraine, a growth of 4.1% is estimated—. In this context, and taking into account that in 2050 the African population will be more than 2,500 million inhabitants, it is clear that Africans will increase their needs in terms of consumption, so it becomes an ideal context for companies and institutions strengthen their relations in a continent in constant acceleration and with great growth potential given its scarce industrial development and low per capita income.
With regard to the most interesting sectors for Spanish companies, we must comment that the diversity of African countries makes it possible to invest in different sectors according to the needs of each of them. We can mention, due to its importance and to see a sample of how the continent is evolving, a series of examples of the investments that are being carried out and that could be good opportunities for Spanish companies: in South Africa, its commitment to renewable energies stands out; in Egypt, railway infrastructures are being developed and modernized; in Mozambique, the construction of a road network and the development of the tourism sector are promoted; Senegal is also committed to tourism —here the opening of the Spanish hotel chain Riu stands out, which already has other establishments in Cape Verde, Morocco, Mauritius and Tanzania—; and, of course, the development in several countries of environmental and sustainability programs of which Europe is the standard bearer stands out and which, without a doubt, can contribute to sustainable growth in African countries, as well as to obtaining scarce resources, such as electricity and water supply through technological means. In relation to the latter,It is worth mentioning the successful pilot project of “RainMaker Air to Water” of Euro Safety Group, presented this June in Morocco before the International Institute of Water and Sanitation. A project aimed at obtaining drinking water from the humidity of the air that can produce up to 5,000 liters of water per day. This experience is going to be transferred to the rest of the African countries given the need for water resources and what will contribute to the sustainable development of the continent and alleviate part of the needs of its inhabitants.
The activity of these sectors —energy, water and sanitation infrastructure and engineering— are also aligned with the Sustainable Development Goals of the 2030 Agenda, so the Spanish government, in order to position Spanish companies in these countries —especially in North Africa and Sub-Saharan Africa— launched the “Horizon Africa Strategy” agenda as early as 2020, which includes a series of financial support measures —associated with FIEM, CESCE and COFIDES—, as well as measures of institutional support to increase the visibility of high positions of the Spanish economic and commercial administration in the African territory.
Before concluding this point, we must emphasize that Africa is not only a very favorable territory for investment, as we have seen through some examples, but also for commercial exchanges, which may increase in the coming years, especially in regarding agri-food products, since they are very competitive in price on the European market.