Africa is entering a transformative era, defined by powerful demographic shifts, deepening economic integration, and accelerated innovation. For business leaders and investors, this period of dynamic change presents remarkable opportunities for growth and resilience. A new and transformative business age has begun, and understanding the forces shaping the continent's future is essential for businesses to navigate it.

This report explores the powerful currents driving this momentum. It examines the immense potential unlocked by Africa’s demographic and economic fundamentals, where a young, growing population and rapid urbanisation are creating new consumer markets at a scale matched by few global regions.

To navigate this landscape and seize the opportunities ahead, strategic investment and innovation are paramount. The following report provides deep insights into the key sectors poised for exceptional growth and the strategic insight to help businesses thrive.  

Africa’s transformation: A continent ready for economic growth

Population and economic dynamics in Africa

With around 1.56 billion people today and an estimated 2.02 billion by 2040, the continent offers scale matched by few global markets. The level of urbanisation across Africa is projected to grow from 57% in 2025 to 62% in 2040, with an estimated 17 megacities inhabited by more than 10 million people by 2050. Growth of this size highlights the giant wave of urban transformation that is sweeping through the continent but also signals potential challenges via strained infrastructure and services, if their development does not maintain pace with population growth.

The economic fundamentals support this demographic story, with a total forecast GDP of $2.8 trillion by 2025’s end, up from $2.3 trillion in 2023. This growth spans multiple sectors, from digital services to mineral extraction, creating diversified investment prospects.

“Africa’s greatest resource is its people. We will not benefit from any of the budding sectors unless we intentionally focus on developing and empowering our young people for the future.”

John Walabyeki
Managing Partner, Uganda

Unlocking opportunities with the AfCFTA: Africa's trade advantage 

The African Continental Free Trade Area (AfCFTA) is a significant trade agreement aimed at creating a single, unified market for goods and services across the African continent. By bringing together the 55 member states of the African Union, it represents the largest free trade area in the world by number of participating countries.

Having come into effect in 2021, the core objective of the AfCFTA is to boost intra-African trade by progressively eliminating 90% of tariffs and reducing non-tariff barriers. The agreement seeks to enhance economic diversification and industrialisation, fostering a more competitive and integrated continental economy. Ultimately, the AfCFTA is designed to strengthen Africa’s position in the global marketplace and drive sustainable economic growth and development for its population.

By 2045, it is projected to boost intra-African trade by 45%, with significant growth in manufacturing, agro-processing, and services, while raising Africa's GDP by 1.2% and welfare by 0.9%.

For middle market businesses, this means:

• Market access: Direct routes to 1.3 billion consumers without traditional trade barriers
• Supply chain optimisation: Regional sourcing opportunities, reducing costs and complexity
• Competitive positioning: Early movers gain substantial advantages in newly integrated markets 

“The Africa Continental Free Trade Area (AfCFTA), once fully actualised, has the potential to deliver significant economic and social benefits to its people”

George Mutua
Partner, Kenya

However, persistent challenges such as high inflation, fiscal deficits, and unsustainable debt levels threaten to undermine the economic and market gains that AfCFTA hopes to deliver. The United Nations Economic Commission for Africa’s (UNECA) 2025 economic report highlights that, although the continent’s debt-to-GDP ratio is expected to decrease from 67.3% in 2023 to 62.1% by 2025, the burden of high debt servicing costs continues to redirect resources away from essential development priorities. 

Unlocking the AfCFTA’s full potential through investment

Climate change further compounds these challenges, with annual economic losses currently estimated at $7 to $15 billion and projected to escalate to $50 billion by 2030. The AfCFTA offers a pathway to mitigate these impacts through green industrialisation and investments in renewable energy, positioning Africa as a leader in climate-proofed development strategies.

To fully leverage the AfCFTA’s potential, UNECA estimates $120.83 billion in transport infrastructure investment will be required by 2030, alongside regulatory reforms to enhance market access and foster innovation. Trade facilitation measures, such as harmonising customs procedures and reducing non-tariff barriers, will be critical in unlocking the full benefits of the agreement.  

Key focus areas for business growth in Africa

Periods of accelerated change often reveal opportunities for remarkable growth and resilience. Across Africa, a continent poised for transformation, several key sectors are demonstrating significant potential. For middle market business leaders ready to navigate this dynamic landscape, understanding these growth areas is the first step toward building a confident future.

The implementation of the African Continental Free Trade Area (AfCFTA) is a powerful catalyst, aiming to harmonise trade regulations and boost intra-continental commerce. This creates a more integrated and accessible market, empowering businesses to expand across borders and seize new opportunities.

Food supply chain logistics in Africa 

Food systems, cold chain logistics, and infrastructure development are key for fostering business growth and economic resilience in Africa. With a growing population and increasing urbanisation, the continent faces significant challenges in ensuring food security that can match the growth. Investments in climate-smart agriculture, improved market access, and resilient food systems are critical to addressing these challenges. For example, the $2.75 billion Food Systems Resilience Program for Eastern and Southern Africa aims to enhance agricultural sustainability, integrate regional markets, and strengthen food crisis response mechanisms. Similarly, the $1.17 billion West Africa Food Systems Resilience Program focuses on improving food security through digital advisory services, regional trade integration, and adaptive agricultural practices.

Infrastructure, particularly in cold chain logistics and irrigation systems, plays a vital role in supporting agricultural value chains, reducing post-harvest losses, and transporting pharmaceuticals. 

“For most countries in Africa, infrastructure is more than a national asset; it is a continental bridge. Building resilience into every intra-African channel and energy line is key to unlocking Africa’s next decade of growth.”

Paulo Lopes
Managing Partner and CEO, Mozambique

Projects such as the $175 million Sahel Irrigation Initiative Regional Support Project, which promotes small and medium-scale irrigation, highlight the importance of infrastructure in boosting agricultural productivity and resilience. Additionally, initiatives like the $95 million Malawi Agriculture Commercialization Project (AGCOM) aim to enhance the commercialisation of agricultural products, creating opportunities for smallholder farmers and improving market connectivity. By addressing these critical areas, Africa can strengthen its food systems and create a foundation for sustainable economic growth.

Renewable energy: Transforming Africa’s energy landscape

Africa possesses vast renewable energy resources, including 60% of the world's best solar potential, yet this remains largely untapped. The International Energy Agency highlights that around 600 million people in Africa still lack access to electricity. This deficit presents a major opportunity for investment in renewable energy projects.

Harnessing solar, wind, and geothermal power offers a direct path to sustainable industrialisation and improved living standards. Key investment areas include:

• Utility-scale renewable energy generation.
• Decentralised mini-grids to power rural communities and industries.
• Modernising grid infrastructure to support clean energy integration.

Achieving universal access to electricity by 2035 calls for a targeted investment of $15 billion annually, as highlighted by the International Energy Agency. Decentralised options, such as solar home systems and mini-grids, are vital for connecting the unserved population living in rural areas. Dedicated funding at this scale can accelerate the deployment of renewable solutions, offering a cost-effective, rapid pathway to electrification that empowers local economies and improves quality of life.

To support this transformation, private investment is essential. Modernising national grids to integrate clean energy sources, alongside establishing supportive regulatory frameworks, will build the confidence needed to attract capital. 

SME financing: Unlocking Africa’s economic engine 

Small and medium-sized enterprises (SMEs) are the foundation of Africa's private sector, accounting for around 90% of African businesses and 80% of employment. However, they face a severe annual gap of $1.3 trillion. This lack of capital restricts their ability to scale, innovate, and compete.

Addressing this challenge is crucial for unlocking the continent's full economic potential. Innovative financing models, including private credit and fintech solutions, are emerging to provide SMEs with the growth capital they need. Meeting these investment needs can fuel job creation and drive broad-based economic development, enabling them to participate more fully in the single market created by the AfCFTA. 

Mining innovation and modernisation in Africa 

Africa's rich mineral reserves are essential for the global energy transition. The continent holds a significant share of the world’s resources for critical minerals like cobalt, manganese, and platinum. As global demand for these materials grows, the mining sector is undergoing a profound transformation.

The mining industry is undergoing a transformation as innovation and modernisation introduce advanced technologies such as AI, automation, and robotics. These advancements are reshaping operations, improving efficiency and safety while supporting more sustainable practices. Digitalisation offers opportunities to optimise resource extraction, reduce waste, and strengthen environmental responsibility. As global demand for critical minerals continues to rise, the adoption of innovative solutions will be key to balancing growth with environmental care.

The focus is also shifting towards greater local value addition and sustainable practices. The African Development Bank is promoting investment in local processing and manufacturing to ensure more of the value chain remains within the continent. This opens new avenues for businesses specialising in:

• Advanced extraction and processing technologies.
• Renewable energy solutions to power mining operations.
• Digitalisation and automation to improve efficiency and safety.

This evolution enables a more equitable and sustainable approach to resource extraction.

Digital infrastructure: Building the foundation for growth in Africa

Digital transformation is a powerful driver of economic development across Africa. Expanding internet access alone can significantly boost GDP growth, and investment in digital infrastructure is therefore a strategic priority. The mobile sector alone added $140 billion of economic value to Sub-Saharan Africa's GDP in 2023, representing 7.3% of the total. This emphasises the immense potential that further digital integration holds for the continent.

As businesses and consumers increasingly move online, the demand for reliable connectivity, data centres, and cloud services is soaring. This digital backbone is essential for fostering innovation and for integrating Africa more deeply into the global economy. To support this growth, mobile operators in Sub-Saharan Africa invested over $28 billion in capital expenditure over the last five years and are expected to invest a further $62 billion between 2023 and 2030. These investments are fuelling the expansion of 4G and the nascent rollout of 5G networks, which currently cover 44.3% and 1.2% of the population, respectively.

This expanding infrastructure is catalysing growth in key digital sectors: 

Fintech: The fintech sector is a standout example, with mobile money platforms transforming financial inclusion. In 2023, the mobile ecosystem supported 3.7 million jobs in Sub-Saharan Africa, many of which are linked to the burgeoning digital economy.

E-commerce: Digital platforms are connecting smallholder farmers and entrepreneurs to broader markets. In Nigeria, for example, smallholder farmers are using generative AI to gain access to valuable information and to undertake research into their agricultural operations and overall welfare. 

Innovation hubs: A growing network of tech hubs and start-ups is tackling local challenges with global solutions. In Senegal, one company delivers tailored mobile advice on crop disease and irrigation by analysing farmer and crop data. Meanwhile, a Ghanaian startup provides highly localised weather forecasts via SMS, enabling farmers to optimise planting and harvesting schedules using even the most basic mobile phones.

By continuing to invest in its digital foundations and nurturing innovative ideas, Africa is poised to unlock new avenues for sustainable growth, empowering its businesses and people.

Private equity’s growth in Africa

Private equity in Africa is gaining momentum; in 2024, private equity fundraising in Africa more than doubled to US$4.0 billion, the third-highest level in a decade. Domestic investor commitments, especially from pension funds and corporates, rose significantly, with development finance institutions maintaining a strong presence.

Deal volume increased by 8%, while total deal value edged down to US$5.5 billion, reflecting a shift to smaller, targeted investments. Investors focused on infrastructure, financials, healthcare, agribusiness and technology, with sector-specific funds and private debt gaining traction. By the end of 2024, Africa-focused fund managers had accumulated approximately $10.3 billion in dry powder. This substantial reserve of capital, primarily concentrated in private equity and infrastructure funds, highlights a robust near-term investment pipeline and signals a promising future for private capital activity on the continent. 

“Private equity’s and credit funding's growing footprint in Africa is not just fuelling businesses, it’s reshaping ecosystems and our ways of life. The surge in available funding is catalysing investments in digital & AI infrastructure, renewable energy, electric vehicles network and SME credit, but its ripple effects are most visible in the transformation of retail and logistics.

As consumer spending rises and urbanisation accelerates, private equity is enabling the build-out of cold-chain logistics, modern retail platforms, and last-mile delivery networks. This convergence of capital, consumption, and connectivity is redefining how goods move, how people shop, consume products and how businesses scale. It’s a signal that Africa’s growth is becoming more integrated, more digital, and more inclusive, and we must be ready to engage with this momentum.”

Dinesh Munu 
Head of Assurance, South Africa

The key industries driving growth in Africa

Africa is a continent ready for remarkable economic transformation. Across its diverse nations, several key industries are powering this momentum, creating opportunities and paving the way for a prosperous, sustainable future. By understanding these dynamic sectors, middle market businesses and leaders can gain the insights needed to outpace change and unlock significant growth. We explore the forces shaping progress in critical areas, from climate-driven partnerships and financial innovation to the modernisation of mining and agriculture.

NGOs and blended finance in Africa

Africa faces an annual investment gap of $1.3 trillion, with climate adaptation requirements rising fast and public funding alone unable to deliver the scale required for sustainable development. In response, non-governmental organisations (NGOs) are forging dynamic partnerships with businesses and local institutions, deploying innovative solutions that accelerate climate resilience in sectors such as decentralised solar energy, sustainable agriculture, and cold-chain logistics. 

At the heart of these partnerships is blended finance. Globally, Africa remains the primary destination for blended finance, attracting 48% of global transactions annually between 2022 and 2024 and securing a steady $6.3 billion in financing in 2024 alone. Investment is heavily focused on the financial services sector and climate mitigation and/or adaptation in the infrastructure sector, with countries like Nigeria, Kenya, and Senegal emerging as key recipients. This highlights the region's significant role in leveraging blended finance to drive economic growth and sustainable development.

Despite this progress, significant challenges persist. Local, government-led investment initiatives remain limited, accounting for just 17% of capital commitments (although this is the highest share compared to other regions) and are therefore still reliant on external financing. Meanwhile, with the majority of investment going into financial services and renewable infrastructure, some critical social sectors, such as healthcare and education, are underfunded. 

“Blended finance can reshape Africa’s impact landscape when structured around measurable outcomes and strong local partnerships. NGOs bring community trust and operational reach; private investors bring discipline and scale. When aligned through transparent frameworks, this collaboration unlocks sustainable investment in vital sectors such as clean energy, agriculture, and SME development.”

Paulo Lopes
Managing Partner and CEO, Mozambique

Financial services in Africa

Africa’s financial services landscape is undergoing a rapid and significant transformation, driven largely by digital innovation. In Sub-Saharan Africa, the share of adults with a mobile money account has increased significantly in recent years, climbing to 40% in 2024 (from 27% in 2021). This surge is a powerful engine for financial inclusion, providing millions of people with access to essential financial tools for the first time.

This digital wave extends beyond payments. Innovations such as AI-powered credit scoring and embedded insurance are breaking down traditional barriers to finance. These technologies enable providers to serve previously unbanked and underbanked populations, particularly in rural areas, fostering economic empowerment and resilience. 

“By 2030, the financial services sector will be shaped by deepening mobile money adoption and a growing demand for SME financing. With supportive regulatory reforms and increased digital infrastructure, the market is poised to unlock significant opportunities for inclusive growth and investment.”

Masautso Mwale 
Associate Director - Audit and Assurance, Zambia

Mining in Africa

Africa holds over 30% of the world's reserves of critical minerals—such as cobalt, copper, lithium, and manganese—that are indispensable for the global transition to clean energy. As demand for these resources grows, nations across the continent are shifting their focus from simple extraction to local beneficiation. This strategy aims to capture more value domestically by processing raw materials into higher-value products.

Initiatives like the Democratic Republic of Congo and Zambia's plans to create special economic zones for battery production exemplify this forward-thinking approach. By developing local processing and manufacturing capabilities, countries can attract greater investment, create skilled jobs, and build more resilient economies.

Egypt is also becoming one of Africa’s most dynamic mining frontiers. Through major reforms to its mining law and fiscal framework (including the government’s target for mining to contribute 6% of GDP), the country has moved from an old concession model to a modern, transparent licensing system that welcomes global participation. These updates, supported by a new digital mineral platform and greater fiscal transparency, have made Egypt a serious destination for international mining investment.

“Egypt’s mining sector has entered a decisive decade of transformation. The shift from concessions to competitive licensing, combined with technology and ESG integration, is opening the door to international investors and local value creation.”

Mohamed Hashish 
Executive Partner, Egypt

Key focus areas for Africa’s mining industry's sustainable transformation include:

• ESG-compliant operations: Adhering to strict environmental, social, and governance (ESG) standards is now non-negotiable for meeting global investor expectations and ensuring a social licence to operate.
• Water-efficient technologies: As a water-scarce continent, adopting innovative technologies for sustainable water management in mining is critical for long-term viability.
• Midstream processing: Investing in refineries, smelters, and manufacturing plants enables countries to move up the value chain, turning raw resources into finished goods for both domestic and international markets.

Agriculture in Africa

Agriculture remains a cornerstone of Africa’s economy, employing over half of the continent's workforce and accounting for a significant portion of its GDP. The sector holds immense potential to enhance food security, reduce poverty, and drive broad-based economic growth. Realising this potential requires a dedicated push towards modernisation, leveraging climate-smart practices and technology to boost productivity and sustainability.

This transformation is already underway, supported by strategic investments in innovative solutions that empower farmers and strengthen food systems.

Investment highlights include:

• Solar-powered irrigation: Deploying off-grid solar technology to power irrigation systems helps improve crop yields, conserve water, and reduce reliance on expensive and unreliable energy sources.
• Carbon credit programmes: Climate-smart agricultural practices, such as agroforestry and improved soil management, can generate carbon credits. This creates an additional revenue stream for farmers while contributing to global climate goals.  
• Digital platforms: Mobile applications and online marketplaces are connecting smallholder farmers directly to markets, providing access to real-time price information, weather forecasts, and financial services. These platforms cut out intermediaries, increasing farmers' profits and improving supply chain efficiency. 

Future outlook and strategic positioning: Emerging trends in Africa and the middle market through to 2030 

Africa’s coming years will be defined by the continent’s ability to harness its demographic strengths, integrate its economies, and leverage innovation to build a sustainable and prosperous future. For middle-market businesses, this period of accelerated change presents remarkable opportunities for growth and resilience. By understanding the emerging trends and positioning strategically and inclusively, leaders can empower their organisations to thrive. 

“Development without inclusion is not progress, it’s deferral. Sustainable change demands that all sectors, government, business, and civil society, act not in silos, but in synergy. These institutions remind us that civil society is not just a stakeholder at the table, but a co-creator of the systems we seek to build..”

Edite Felix 
Head of Advisory, Mozambique

The future of Africa's middle-market landscape is currently being shaped by three powerful, interconnected forces: deeper regional integration, a widespread technology-driven transformation, and a clear focus on sustainability and purpose-driven action. 

Key trends shaping the future to 2030 in Africa

1.Deepening economic integration through the AfCFTA 

The African Continental Free Trade Area (AfCFTA) will continue to be a primary catalyst for economic transformation. As implementation matures, expect to see a significant reduction in trade barriers, leading to more resilient regional supply chains. This will create a more stable and predictable environment for businesses, encouraging cross-border expansion and investment. For the middle market, this means unprecedented access to a unified market of over 1.5 billion people, opening doors to new customers and simplifying continental operations.

2.The rise of a digitally-native economy 

Digital transformation will continue to accelerate, touching every sector from agriculture to finance. Investment in digital infrastructure, including 5G networks, data centres, and fibre optic cables, will be crucial to provide the foundation for a new wave of innovation.

• Fintech evolution: Mobile money is expected to become even more sophisticated, expanding beyond just payments, deepening financial inclusivity and unlocking new capital for SMEs.
• Data-driven agriculture: The use of AI, the Internet of Things (IoT), and digital platforms in agriculture will be essential to modernise the sector and boost productivity, improve food security, and create more efficient value chains.
• Smart industrialisation: Automation and digital technologies will transform manufacturing and mining, enhancing efficiency, safety, and local value creation.

3.Sustainability as a core business driver 

The global energy transition and the urgent need for climate adaptation place Africa at the centre of a new, green economy.

• Renewable energy dominance: Africa’s immense solar, wind, and geothermal potential needs to be unlocked at scale. Investment in renewable energy projects would not only address the continent’s energy deficit but also power green industrialisation.
• From extraction to processing: Demand for Africa’s critical minerals will continue to soar. If the focus shifts from pure raw material extraction to local processing and manufacturing, higher-value industries and skilled jobs can be created.
• Innovative and blended finance: With a significant climate financing gap, blended finance models will become essential. Partnerships between NGOs, private investors, and development finance institutions will help to scale up investments in climate-resilient infrastructure, sustainable agriculture, and clean energy. 

Strategic opportunities for the middle market in Africa

To capture the opportunities of the coming decade, middle market leaders must adopt a forward-focused mindset. Success will depend on the ability to be agile, innovative, and deeply collaborative.

• Embrace cross-border growth: Develop strategies that look beyond national borders. The AfCFTA makes a pan-African approach more viable than ever. Building regional partnerships will be key to navigating diverse markets effectively.
• Invest in digital capabilities: Digital transformation has become a core enabler of growth. Prioritising development in technology can enhance operational efficiency, broaden reach, and support new business models.
• Integrate ESG principles: Embedding environmental, social, and governance (ESG) standards into core strategies can help build resilient, future-proof businesses that attract investment, talent, and customer loyalty.
• Focus on people: Africa’s young, dynamic population remains its greatest resource. Investment in skills development, digital literacy, and leadership training can position organisations to leverage this demographic potential.

We partner with middle-market businesses and industry leaders to Take Charge of Change by combining our global reach with local, personalised expertise. Through meaningful collaboration and a deep understanding of clients' challenges and ambitions, we create insights and solutions that blend future-focused knowledge with practical, real-world experience. This is The Power of Understanding, instilling organisations with confidence in a world of change and helping them shape a brighter future as One Africa, within One RSM.