Africa Growth Prospects Are Key Attraction To Gulf Investors

While there have been some doubts whether African countries can maintain the pace of growth, Ernst & Young believes that 14 years of growth has not been a "flash in the pan" and that the trend will continue. EY expects Africa's combined GDP to hit USD 3 trillion by 2018, compared to just over USD 2 trillion currently.

Many Gulf businesses are well aware of Africa's promise.

Dubai's Emirates airline has emerged as the de facto 'national' airline of Sub-Saharan Africa, offering 198 flights a week to 22 destinations, while Abu Dhabi's Etihad Airways serves 11 destinations.

Logistics firm Aramex has been focused on expanding in Africa and said in January it would look to acquire firms in South Africa and east Africa.

Abraaj Capital, a major private equity investor in emerging markets, has been on the hunt in Africa in recent years, picking up stakes this year in Morocco's chocolate manufacturer Kool Food, and in Liberty Star Consumer Holdings, one of the largest unlisted food and personal care manufacturers in South Africa. Read More...