According to the African Economic Outlook, GDP in Africa is projected to grow by 3.4 percent in 2021, after contracting by 2.1 percent in 2020 following the global COVID-19 pandemic. Sub-Saharan Africa, with its young and growing population, is set to lead this growth for the continent.
Thanks to digital solutions and access to global markets provided by companies like FedEx Express, a growing number of young African entrepreneurs could be the key to new development across Africa, kick starting Africa’s return to an engine of global economic growth.
Almost 60% of Africa’s population is under the age of 25, and the African Union recognizes the importance of investing in and creating opportunities for young people to realize their full potential through programmes like the African Youth Charter, Youth Decade Plan of Action, and the Malabo Decision on Youth Empowerment, all part of the AU Agenda 2063.
Entrepreneurship can provide a viable pathway to success for people entering the workforce for the first time, largely because young entrepreneurs are more likely to hire other young people, and are more likely to be early adopters of new technologies and economic opportunities.
By tapping into the continent’s growing digital revolution, young entrepreneurs are using information and communications technology to boost their prospects, as the growth of tech hubs in Kenya, Rwanda and Ghana attest. PWC estimates that the digital economy may contribute as much as 24% of global GDP in the next five years, or a staggering $18.2 trillion. Young Africans are dynamic, forward-looking, and well positioned to develop innovative ways to tap into the digital economy, and use it to access global markets.
For new businesses looking to send their goods within Africa or across the globe, logistics support can be a game-changer. Logistics services that are efficient, have experts who can offer advice and support to navigate customs rules and regulations, and are easily accessible are critical to helping businesses compete globally.
The logistics industry has an important role to play in the growth of a youth-driven economy, with businesses looking to grow their customer base in new markets.
FedEx has a long history supporting and championing entrepreneurs in the region, and we continue to enhance our presence to provide our customers with easier and more direct access to our services. With nearly 50 years of helping small businesses reach new markets, we know that entrepreneurs are looking for a partner that doesn’t just provide products, but helps them navigate and connect to global markets, and grow their business globally.