In the coming years, economic growth will be driven by countries in the Asia-Pacific, Africa, and the Americas. The global economy is also expected to continue growing at a steady clip as emerging markets continue to gain momentum. As a result, there are significant opportunities for businesses that want to increase their market share or expand into new regions. In this article, we’ll look at some critical regional themes that can help your business find success in 2023:
Asia-Pacific
Asia-Pacific is the world’s largest and most dynamic region. It has the fastest-growing economy globally, making it an important market for Canadian businesses. In addition to its size and economic potential, Asia-Pacific is home to 1.6 billion people, making it the most populous region in the world.
The growth will continue over the next decade as economies across Asia continue to expand at a rapid pace.
As a result, Canadian companies have many opportunities to export their products and services to Asia-Pacific. Canada is well positioned in this region for several reasons. First, Canada is one of Asia-Pacific’s most significant sources of foreign direct investment. Second, Canada is one of the most open markets in the world and has signed free trade agreements with six Asian countries (Brunei Darussalam, Hong Kong, China, Japan, Malaysia, Singapore and South Korea).
Finally, Canada has a strong reputation for quality products and services, which makes it an attractive trading partner for Asian companies.
Except for Japan, Canada is the third-largest trading partner with all Asian countries. In 2013, Canadian merchandise exports to Asia were worth US$40 billion, while imports from Asia totalled US$35.6 billion.
Africa
Africa is a fast-growing market. It was expected to be the second-largest market for mobile devices in 2022 and has a large population with a young demographic. Africa has the world’s highest proportion of its population under 25 years old. Additionally, it has a growing middle class that can afford to buy new products and services. These are essential factors when deciding where to do business as a manufacturer or distributor looking for growth opportunities in emerging markets.
The growing smartphone market in Africa has made it an attractive place for companies like Samsung and Huawei to expand their business. Huawei is one of the leading smartphone brands in Africa, with a regional market share of around 30% in 2018. The company launched its first device designed for the African market in 2016. This was followed by another device that year and several more over the past few years.
The Huawei Mate 20 Pro is one of the latest smartphones from the company. It was announced in October 2018 and released in November. The device has a 6.39-inch OLED display with a resolution of 3120 x 1440 pixels, an in-display fingerprint scanner for security, water resistance up to 1.5 meters for 30 minutes, wireless charging support and an artificial intelligence (AI) chip.
Renewable energy, digital infrastructure, and edutech are some themes that will be critical for African business development in the next few years. These businesses should also consider creative financing, MedTech and fin-tech when considering growth strategies.
Excluding Nigeria, the Western and Central Africa subregion is projected to grow at 5.0% in 2023 (up from 4.2%), and growth will firm in 2024 (5.6%). Real GDP growth in Nigeria is expected to slow from 3.6% in 2021 to 3.3% in 2022 as economic growth continues to suffer from an underperforming oil sector. WAEMU countries are set to recover in 2023 from the slowdown in 2022 (4.9%), up to 6.4%, and firm further in 2024 to 7.0%. Growth in Côte d’Ivoire is projected to bounce back from 5.7% in 2022 to 6.8%. After slowing to 4.8% in 2022, growth in Senegal is projected to jump to 8.0% in 2023 and firm to 10.5% in 2024. In Cameroon, the economy will maintain its steady post-pandemic growth in 2023 (4.3%) and 2024 (4.6%), buoyed by investment and private consumption.
The Americas
The Americas—the Western Hemisphere and its nations, including North America and South America—are a growing business market. The region is home to nearly 500 million consumers, many of whom are young and tech-savvy.
As you consider expanding your business into the Americas, it’s essential to know where your audience is most likely located, what industry they work in and how much money they make. Here’s some data that’ll help you get started:
- Population: 471 million people
- GDP: $9 trillion
Per Capita Income: $14,200
In the Americas, the population is more than double that of Europe and nearly triple that of Asia. In terms of GDP, however, the Americas trail both regions by a significant margin.
Europe
The European Union (EU) is the largest economy in the world, and its population of over 500 million makes it a critical region for international business development. In addition, the EU operates under a single market policy—there are no tariffs on trade between members, and citizens can move freely between countries.
The European Union has been instrumental in creating a unified environment for trade throughout much of western Europe. As a result, multinational companies find it easier to do business across national lines without barriers to commerce or movement within their borders.
The European Union is a unique political entity. It was created when the Treaty of Rome was signed by France, Germany, Italy and the Netherlands in 1957. The EU’s membership has changed many times since then, with Great Britain joining in 1973 and Greece becoming the first Balkan country to join in 1981; from then forward, membership expanded rapidly.
Today, the EU has 28 member states, with Croatia becoming a member in 2013. The European Union is governed by international law and its rules. However, it operates under treaties—agreements between countries.
Oceania
Oceania is an island region consisting of Australia, New Zealand and the Pacific Islands. The area has high growth rates and good prospects for further development in tourism and infrastructure.
According to a recent report from the World Bank, the Pacific Islands have recorded average annual growth rates of around 6 per cent over the past decade—more than double that of Africa’s 3 per cent rate—and there are signs that this trend will continue into 2023.
The governments of Oceania are actively encouraging foreign investment through various initiatives: The Australian Federal Government has introduced new tax incentives for investors looking to capitalise on opportunities in emerging industries such as digital health care, while New Zealand recently announced plans to relax immigration restrictions on skilled workers from outside Australia who want to move permanently or temporarily into New Zealand.
Oceania also has a relatively small population, with just over 41 million people spread across the region. This means that there is plenty of space for new infrastructure and development. The World Bank estimates that around 60 per cent of land in Australia is still available for the product.
The Middle East
The Middle East is a large and diverse region with many different markets to explore. It is a region of opportunity with many business opportunities. The Middle East has a large and growing population, which means there are plenty of people to sell your product or service to. The Middle East is also a region with high growth potential. All in all, it’s an excellent place for any company looking for new opportunities in 2023!
The Middle East is a region with a lot of potentials. It’s an area that has seen a lot of development over the past decade, and there are many opportunities for businesses to take advantage of this growth. Moreover, the region has become increasingly important in recent years, so it’s an excellent place to start looking for new opportunities in 2023!
The Middle East is a region with many opportunities for businesses. It has seen a lot of development over the past decade, and there are many ways to take advantage of this growth. Moreover, the region has become increasingly important in recent years, so it’s an excellent place to start looking for new opportunities in 2023!
The Middle East is a region with many opportunities for businesses. It has seen a lot of development over the past decade, and there are many ways to take advantage of this growth. In addition, the region has become increasingly important in recent years, so it’s an excellent place to start looking for new opportunities in 2023! The Middle East is a region with many opportunities for businesses. It has seen a lot of development over the past decade, and there are many ways to take advantage of this growth.
Target these markets to grow your business.
You can confidently shape your business plan by focusing on these regional themes. As a result, your marketing efforts will be more effective and less costly.
Themes are not a strategy—they’re the starting point for developing one. They help you to focus on what it takes to grow your business in the next five years by pinpointing the markets that have the potential for growth and showing how you’ll reach them. A theme also allows you to identify your target customers and what they need from you at this time of change in our industry.
A well-defined theme helps guide all aspects of business decision-making: from mission statement development through product development and pricing strategies; from sales planning through distribution channel selection; from hiring decisions through vendor relationships; from capital allocation through risk mitigation strategies.
Bottom-Line
These themes will help you develop your business and grow beyond what you thought possible. While this is just a starting point, I encourage you to research and develop an action plan for where you want to go next.
Who am I?
I am Dotun Adeoye, a Business Growth Strategist & Author of the 5 Pillars of Business Growth.
I’ve built up my experience via serial entrepreneurship, consulting leadership roles in business growth, business development and product innovation in large companies worldwide in the last 29 years.
Today, I consult with large businesses on how to sustainably grow their businesses, sustain infinite growth, ensure business continuity and achieve a legacy.
Hire Dotun Adeoye to Speak Virtually or In – Person at your company’s event to cover this or other topics. You can also get in touch via +44 203 097 1718
