Two Studies, Same Verdict On India's Africa Potential

At the same time, even as some of these sectors offer attractive opportunities, there is the need for a customised approach to overcome challenges -- something which India Inc. is well equipped to handle, like the lack of local talent or fragmented market.

Specifically on IT, Mckinskey says although it is a nascent sector in Africa, it has a potential to create jobs, with Africa's spending in this area set to triple to $80-$95 billion by 2025 -- the bulk of it from South Africa, Nigeria, Egypt, Kenya and Ghana.

"Africa could create around 2.5 million new jobs by 2025 if it captures 5-10 percent of the addressable European outsourcing and offshoring markets," it says, adding potential is in e-governance, banking, security, information management and industry solutions.

Two other areas of growth it mentions are the transport and power sectors. "As Africa's power sector races to catch up with other emerging markets, it provides a huge growth potential for Indian companies," it says.

"North Africa's high electrification rate guides the compass of opportunity there -- by 2040, Sub-Saharan Africa's electricity consumption of around 1,600 TWh will represent a $800 billion opportunity."

These apart, McKinsey says, the African continent's untapped agriculture output is also an area that Indian companies can tap into.

"Africa's aspired 'green revolution' can raise its agricultural output from $280 billion in 2010, to around $880 billion by 2030 through the cultivation of new land, yield improvement and shift to high-value crops."
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