Africa has long been considered politically unstable and fragile due to predominance of unconstitutional regimes such as through military coups. Since the early 1960s, Africa has experienced about 200 coups d’état. However, recent years have raised hopes for improved political transition and stability across the continent. Free and transparent political elections constitute an important and essential step towards successful leadership and democracy. Failure or absence of free political elections may impede social and economic development of a country or region as it may lead to social upheaval. Political stability is of primary importance in fostering economic and social development and in attracting foreign direct investment to the continent.

The mining industry worldwide is undergoing unprecedented changes, including high volatility of commodity prices and rising exploration costs. Africa, which produces more than 60 metal and mineral products, has a huge potential with respect to mineral reserves exploration and production.

In recent years, mergers and acquisitions (M&A) activities have become an important channel for investment in Africa for both global and local market players. M&A deals have allowed companies to consolidate their positions in African markets, contributing to better market access and competitiveness.

Urbanization is growing in both developed and developing countries. The proportion of the world’s urban population is expected to increase to about 57% by 2050 from 47% in 2000. More than 90% of future population growth will be accounted for by the large cities in the developing countries. In the developing world, Africa has experienced the highest urban growth during the last two decades at 3.5% per year and this rate of growth is expected to hold into 2050. Projections also indicate that between 2010 and 2025, some African cities will account for up to 85% of the population.

In recent weeks, three of the world’s largest central banks namely the U.S. Federal Reserve, the European Central Bank and the Bank of Japan embarked on a new round of monetary easing. This is an unorthodox way of pumping money into the economy and lowering the long-term interest rates in order to combat the recession. Since interest rates in industrial countries had declined to near zero in the aftermath of the global crisis, the scope for further monetary easing through policy rates became very limited. Quantitative easing (QE) and other asset purchase programs have been introduced in modern economic history under exceptional circumstances. The US started implementing QE in 1932 to combat the great depression (USD 1 billion).