Industry experts are beginning to view Africa as the “new Asia” in terms of economic growth and business opportunities. Africa is becoming an increasingly attractive hub for investors in light of various economic, political and social reforms that are sweeping through the continent, resulting in a much-improved business environment conducive to foreign direct investment. Apart from that, there is a widespread development of critical social and physical infrastructure, and there is an increasing pool of well-educated, English-speaking, enterprising workers in most countries across the continent.
It’s true there are lots of amazing business opportunities in Africa. However, it can get very confusing if you don’t know where to look. In this article, I’ll show you some of the hottest business opportunities in Africa that will create more successful entrepreneurs.
1. Food Processing and Agriculture
As the world’s population increases rapidly (recently exceeding the 7 billion mark), global agricultural production must rise to feed these growing numbers. Much of that increased agricultural production will come from Africa. The opportunities in Africa’s food and agribusiness space remain huge and will not go out of fashion anytime soon. The demand for quality food is increasing for a growing population, especially in urban areas. This situation presents many business opportunities in food industry sector. It is time for you to seize these business opportunities by starting a small food processing industry and create value-added products from cereals, grains, nuts, fruits and vegetables.
Invest and start a business in Food Processing and Agriculture in Africa. Here are some projects for investment:
Modern Soybean Production
- Modern Vegetable Production
- Modern Fruits Production
- Modern Maize Production
- Modern Cassava Production
- Small Scale Rice Mill
- Small Scale Palm Oil Extraction Mill
- Honey Processing Plant
- Poultry Feed Plant
- Water Purification and Bottling Plant
- Sugar Cane Production Plant
- Dairy Processing Plant
2. Tourism
An important factor in the expansion of tourism in Africa relates directly to the number of private companies attracting regional and international investment. Evidence of this growth is in the number of global hotel chains that are investing in major projects in Africa. Here are some of the areas you can invest in :
- Tour Operators
- Water Sports
- Hotel Accommodation
- Serviced Apartments
- Conference and Incentives Travel
- National Park Concessions
3. Building and Construction Supplies
Africa is going through a construction boom, an opportunity that will certainly create a lot of wealth for entrepreneurs on the continent. High building and construction activities are often signs of growing economies. When the economy looks good, the demand for residential, commercial and all kinds of real estate usually goes through the roof. The successful delivery of the government and the private sector infrastructure programs depends on the effective functioning of many stakeholders – including the building and construction materials sector. Cement is just one example of several building and construction supplies that are growing in demand across Africa.
4. Fashion and Beauty
Africa’s fashion and beauty market is developing at an impressive rate. The continent’s overwhelmingly young population provides a ready market for trendy fashion. All kinds of apparel, including locally-made fabrics and imported designer labels, have become hot-selling products across Africa’s rapidly expanding urban areas. Africa has hundreds of rising stars who are building successful businesses in the fashion and beauty industry. The beauty industry in the Middle East and Africa was estimated at about $20.4 billion in 2011, according to the market research company Euro Monitor International. South Africa alone represented $3.9 billion; Nigeria and Kenya are second and third among sub-Saharan nations, with Kenya’s market totalling more than $260 million. Overall, Africa is the next frontier for global luxury goods brands. African fashion has enjoyed massive media presence in recent times, which means the world is now aware of the industry and the capabilities of its designers
5. Create a full-service Job Agency
With the high increasing rate of unemployment in Africa, many graduates are desperately searching for job opportunities. Why can’t you be the link between them and their potential employers? This is a gap that has not yet been fully invested in various countries in Africa.
6. Fiber Optics + Internet service provision
As Africa is opening up to the world, there is a tremendous increase in the demand for quality telecommunication and internet service. Take, for instance, video and web conferencing, Smart TVs are yet to fully utilized in Africa because of the poor internet speed experienced in most African countries.
This is where the need for Fiber optics cable comes in. This opens doors for outsourcing business and e-commerce ventures as the price of internet connection will be lower. In my country Kenya, companies such as Safaricom and Zuku have taken the lead in the laying of fibre optics cable but the industry is not yet competitive; and other African countries are still untapped.
7. Real Estate Development
Purchasing or developing commercial property in Africa is very advantageous since it has appreciated over the past ten years. Evidence to this is the fact that demand for the commercial real estate in countries such as South Africa, Ghana, Nigeria, Egypt, Kenya, etc have gone up to 400%, a growth caused by foreign investors and the increasing demand of offices by new businesses.
But is commercial real estate the only lucrative aspect of real estate in Africa? My answer is no. There is also an overwhelming need for residential properties and the rest. In fact, regardless of the area of real estate, you venture into; you are bound to reap bountiful profits.
8. Health Care
The standard of healthcare in Africa is still lagging behind when compared to the standards in Europe, Asia and America. Secondary and tertiary healthcare services have high investment potential in Africa as health management, research and information technology are lacking. This also offers opportunities to serve a social cause.
Taking my country Kenya as an example, the healthcare facilities on the ground are obsolete and unreliable that most people seek medical checkup abroad and delicate surgeries such as heart and kidney transplant are done abroad.
9. ICT Infrastructure
Since Africa lacks infrastructure in the field of communication and information technology, it is a good investment opportunity. There are local IT and communications companies looking to expand their business and is seriously looking for foreign investors to make it possible; thereby creating an opportunity for private investors to help make a thriving company improve its operations in return for a profit.
10. Power generation
10th on my top 7 list of investment opportunities in Africa is Kenya’s need for infrastructure in the field of power generation. Look at how Kenya Power has taken a monopoly on this important need! Someone needs to take advantage of this opportunity and invest in Africa.
11. Agro-Allied investment
As the world’s population increases rapidly (recently exceeding the 7 billion mark), global agricultural production must rise to feed these growing numbers. Much of that increased agricultural production will come from Africa. The opportunities in Africa’s food and agribusiness space remain huge and will not go out of fashion anytime soon. The demand for quality food is increasing for a growing population, especially in urban areas. This situation presents many business opportunities in the food industry sector. It is time for you to seize these business opportunities by starting a small food processing industry and create value-added products from cereals, grains, nuts, fruits and vegetables.
Invest and start a business in Food Processing & Agriculture in Africa. Here are some projects for investment:
- Modern Soybean Production
- Modern Vegetable Production
- Modern Fruits Production
- Modern Maize Production
- Modern Cassava Production
- Small Scale Rice Mill
- Honey Processing Plant
- Poultry Feed Plant
- Water Purification and Bottling Plant
- · Sugar Cane Production Plant
- Dairy Processing Plant
12. E-commerce investment
E-commerce prospects in Africa have gone a notch higher following the active involvement of delivery companies in the transactions. Today, on average, the leading online stores such as Jumia achieve about $2 million worth of transactions per week which is a clear indication that the industry has a big potential to grow.
In conclusion, I want you to know that every sector of the economy in Africa has huge untapped potential; from technology, agriculture, food industry, services, real estate, etc. They all have the potential to yield a good return on investment.
