China’s rapid growth over the past ten years has made it the largest consumer of industrial metals (steel, copper and zinc). In 2011, China accounted for close to 50% of global consumption for base metals. However, recent studies have cautioned that this China-driven boom for industrial metals may be nearing its end, as the Chinese government targets slower, less commodity-intensive growth. China’s 12th Five-Year Plan for 2011-2015 calls for a growth model that focuses on the establishment of a long-term mechanism to boost domestic demand.

China has increasingly become an important economic player in Africa. Chinese investments in Africa span across many sectors and are not confined to Chinese government and large state-owned companies. Several private Chinese companies have also invested heavily in Africa. For example, Huawei, a Chinese leading global telecom services provider, has invested a total of USD1.5 billion and employs 4000 workers in Africa.

Demand for retail banking services in Africa has picked up in recent years, spurred largely by the emerging middle class on the continent which has tripled over the past 30 years to 355 million or more than 34% of the continent’s population. To this end, domestic, regional and international banking groups are re-focusing their efforts to expand the menu of services to meet the growing needs of this newly-found affluent class. According to recent estimates, retail banking in sub-Saharan Africa is projected to grow by 15% per annum by 2020, bringing the sector’s contribution to GDP to 19% from 11% in 2009.

During the past few years, Africa has attracted increasing amount of private equity investments. In 2011 private equity investors closed USD3 billion worth of deals in Africa, up from USD890 million in 2010. In 2010, Sub-Saharan Africa accounted for 6% of total emerging markets private equity investment, up from only 3% in 2007. Currently, around 200 equity investors are actively involved on the African market. Beyond traditional development institutions and institutional investors, more global frontier investors are exploring opportunities in Africa, seeking to diversify risk, improve efficiency, and unlock value.

The slowdown in the euro zone economy in 2011 is expected to deepen in 2012, with recent evidence indicating that the debt ridden single currency bloc is in a «mild recession”. Historical evidence shows that recessions tend to bring about protectionist policy measures as a means to cushion against the impact of external shocks.