Slowly but gradually, in the shadow of Europe and Australia, Africa is expanding its position on the world’s FX/CFD map. Although still poor and not sufficiently regulated, it attracts more and more brokers and serves a growing number of new retailers. Is Africa a Land of Growth Opportunities for Industry?

In the Western world, Africa has an unfair image of an underdeveloped part of the world where most people live in villages and do simple activities to feed their families. These biased photos are from old literature, movies, and Safari trips. In fact, Africa is the fastest growing continent. In 2019, the International Monetary Fund (IMF) revealed that while Africa is the poorest continent in the world, it is also home to the five fastest-growing economies of the year.

Africa is still poor, but the overall potential is great. One of Africa’s greatest assets is its many successful and hungry people. For example, Nigeria is one of only seven countries in the world with a population of over 200 million. It will soon overtake both Brazil and Pakistan in the population rankings to become the fifth most populous country in the world. Ethiopia and Egypt both have over 100 million people and rank among the top 10 countries in the world.

Africa is expanding

It is no surprise that Nigeria has become an attractive destination for the FX/CFD industry. If only a very small percentage (1%) of 200 million people could be converted to Forex traders, that would be a market of around 2 million people. For comparison, there are 200,000 active FX traders in the US and about 100,000 CFD traders in Germany, a wealthy country.

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African foreign exchange market
Currently, Africa has three very interesting countries from a FX/CFD market perspective: Kenya, Nigeria and South Africa, with Nigeria being the most promising. We have already mentioned a large population that is an asset. According to the IMF, the projected GDP per capita in 2021 is 2,432. That’s half the South African value and slightly higher than the Kenyan value.

“The foreign exchange market in Africa has tremendous growth potential. The region offers excellent trading conditions, product and service execution,” Charis Mountis, Exinity Group’s top dealer, told Finance Magnates.

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