AFRICAN PERSPECTIVE

The African opportunity for MICE

Africa is home to an estimated 17,9 per cent (1,480 billion) of the global population, accounting for currently only approximately 3 per cent (US$ 3 trillion) of the global gross domestic product (GDP) according to the International Monetary Fund.

Although Africa’s business environment is relatively under-developed, the continent is widely expected to become a future economic powerhouse. In recent years, African economies have consolidated their post-Covid recovery while navigating an uncertain global environment. Real GDP growth for 2022 is recorded by the African Development Bank as 3.8 per cent, above the global average of 3.4 per cent, with a positive and stable GDP growth outlook projected to 4.3 per cent in 2024.

Aside from the traditional resource-based sources of business including oil, gold, diamonds, coal, cocoa, coffee, tea, timber and leather, the new generation of Africans and the growing middle class have created emerging business opportunities in support centres, manufacturing and processing, education, travel and tourism. The region has been at the forefront of technological advancement in the developing world. Mobile technology continues to change Africa through wide networks that connect cities and towns with remote areas, providing internet connectivity that could add US$ 300 billion per year to the GDP. The economic growth anticipated in Africa, supported by the AU’s ‘Agenda 2063’ that identifies 15 flagship projects to accelerate development, could be quicker than most other geographical areas, and will demand a workforce that is skilled, determined, innovative, passionate and able to think critically. These young professionals are hungry for education and skills to meet the needs of investors and businesses as they expand throughout Africa.

The MICE opportunity

Africa has made important gains in recent decades. Rolling out the African Continental Free Trade Area and the Open Skies for Africa Agreement will promote economic integration and remove barriers to trade and movement of people across the continent, opportunities that will facilitate productive transformation. A robust meetings, incentives, conferences, events and exhibitions (MICE) sector, also known as business events, coordinated by skilled Convention Bureaux in Africa, has the potential to fully support the Agenda 2063 strategy, and in so doing, help improve continental trade that will create productive jobs. Future growth is likely to be underpinned by factors including the most rapid urbanisation rate in the world and, by 2035, a larger working-age population than either China or India.

This is promising for the MICE sector, and particularly for that of the non-government organisation/associations sub-sector. With global associations looking to grow their networks, Africa provides an opportunity for greater global engagement that addresses the needs of this young generation of professionals. Associations that create, facilitate, empower and add value to their networks will likely remain more relevant to the realities of the new marketplace. There is an active and growing association market in Africa supported by expert organisations that have launched in recent years, for example the African Society of Association Executives in 2015 based in Kenya.

Rick Taylor from The Business Tourism Company in South Africa has been supporting the development of the MICE industry throughout Africa for more than a decade. He introduced us to the ‘MICE Corridor of Africa’. Whereas South Africa, Morocco and Egypt have been known as the dominant African destinations for business events, other African countries are emerging and proudly presenting themselves to the global marketplace of business events. This Corridor of African countries, including Rwanda, Uganda, Kenya, Ethiopia, Senegal, Zimbabwe, Mozambique, and more, demonstrates that the MICE African industry is evolving into a more sophisticated state.

Mr Taylor said: “The MICE development strategy for Africa that we have pursued in the past decade can be summed up in the phrase ‘concentrate and dominate’ — one step and one country at a time. As the African continent moves towards a state of maturity (predicted for 2030) and becomes the next supercontinent for business events, those countries with established Convention Bureau presence will be in a better position to sell to a thriving market. With 54 countries and a burgeoning hospitality value chain including tourism boards, convention bureaux, universities, hotel groups and trade/professional associations, there is no shortage of potential in Africa.

However, the challenge lies in building skills and credentials, and this will require purpose, time, and focus.”

The sustainable socio-economic transformation and the legacy benefits to communities, cities and countries resulting from hosting business events, has become much better understood in Africa. And, whilst creating connections with people at a meeting is important, Africans consider it as a valuable way of building a business relationship. Hosting a conference in Africa provides opportunities for professional development, including networking with professionals from across the continent, attending industry-specific workshops, and gaining insight into regional business practices. With the association business events industry in its development stage in Africa, there is the opportunity to establish meaningful legacy programmes as a key part of hosting a conference on the continent.

Africa is a continent with a rich and diverse cultural heritage, including traditional music, dance, and food. Holding a business event in Africa provides an opportunity for attendees to experience this glorious diversity first-hand.

Who is Rick Taylor?

Rick Taylor, chief executive officer, of The Business Tourism Company, an international African-based consultancy. The Business Tourism Company is the strategic architect behind eight national convention bureaux in Africa and has delivered more than 100 diverse tourism projects across South Africa, Namibia, Rwanda, Kenya, Tanzania, Ethiopia, Uganda, Mozambique, Cameroon, Zambia, Togo and Senegal — among others internationally.