FEATURE
VC AND PRIVATE EQUITY EXPECT SUB-SAHARAN AFRICAN ECONOMIC BOOST BY PHIL ANDERSON
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early three-quarters expect GDP growth of 4%-plus this year and two out of five predict 4.5%-plus next year, beating IMF forecast, and internet connectivity is extremely important for driving growth, say 57% of executives. Venture capital (VC) and private equity leaders are expecting a sub-Saharan African economic boom with GDP growth beating International Monetary Fund forecasts this year and next year, new research* for blockchain-based mobile network operator World Mobile shows. The IMF** is predicting sub-Saharan Africa’s economy will expand by 3.7% this year and 4% next year and warns that the impact of Russia’s invasion of Ukraine and the global shock to oil and food prices is affecting the
region, which is recovering from the after-effects of the COVD-19 pandemic and US interest rate rises. However, the senior VC and private equity executives questioned across the UK, US, the Middle East, Singapore, Hong Kong, France and Germany believe economic growth in the region will beat expectations, and they highlight efforts to improve internet connectivity as a potential reason. Nearly three-quarters (74%) expect GDP growth in the region to be 4%-plus this year with one in five (21%) predicting 4.3% or higher. For 2023, 90% expect GDP growth to beat the IMF forecast of 4% with more than two out of five (43%) predicting 4.5% growth or higher. The research highlights the importance to VC and private equity executives of improvements to internet connectivity
Venture capital (VC) and private equity leaders are expecting a sub-Saharan African economic boom with GDP growth beating International Monetary Fund forecasts this year and next year
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SUBMARINE TELECOMS MAGAZINE