Africa Could Be Malaysia’s Next Growth Frontier

By Wan Muhammad Aslah Wan Razali

KUALA LUMPUR, April 29 (Bernama) -- Malaysia should look to Africa as its next trade and investment frontier as diversification into emerging markets becomes increasingly important amid global uncertainty, according to PEMANDU Associates' Joint Managing Director and Partner, Aida Azmi.

She said Malaysia’s direct investments abroad currently stand at about RM660 billion, with most concentrated in established markets such as ASEAN, the United States (US) and China.

While this is efficient, such concentration also creates risks.

Africa therefore emerges as a strategic option for diversification and long-term growth, she said during an interview on Bernama TV’s The Nation programme here on Tuesday.

“If ASEAN was our growth story 30 years ago, Africa could be the next frontier we look to for growth.”

“So diversification is key,” she said, noting that businesses should view new markets as an opportunity to spread risk through careful analysis and stronger strategic planning. 

Aida said Africa, with a population of more than 1.4 billion and a combined gross domestic product (GDP) exceeding US$3 trillion, offers strong long-term potential, with its population projected to reach 2.5 billion by 2050.

She said investors should not treat Africa as a single market, noting that the continent comprises 54 countries, each with different economic dynamics, opportunities and regulatory environments.

Among the promising regions, she cited East Africa as one of the fastest-growing areas, recording real GDP growth of between six and eight per cent, above the global average of about three per cent.

On sectoral opportunities, Aida said agriculture remains a key pillar, employing about 60 per cent of Africa’s workforce and contributing around 20 per cent to GDP. 

She added that more than 60 per cent of the world’s uncultivated arable land is located in Africa.

““So not only can it feed the future, but it can also power the future. In terms of resources for agriculture and for power, it is the rare earths and minerals. Africa has about US$6 trillion in reserves and deposits in those areas,” she said.

Aida said Malaysian businesses could leverage the country’s own development experience in industrialisation, urbanisation and economic transformation to tap opportunities in African markets.

“Thirty years ago, Malaysia was also deemed a risky emerging market, and look at where we are today. Early investors who backed us are now enjoying the fruits of their labour,” she said.

She said success in Africa would require careful market selection, strong local partnerships and long-term commitment.

She added that Malaysia already has an existing footprint in Africa through oil and gas, commodities, infrastructure, and hospitality, but a more coordinated, platform-based approach is needed to scale up future engagement.

-- BERNAMA