20 Business Opportunities in Africa
Africa is “blessed” with unique problems, and many businessmen and investors discover various business opportunities in Africa. They take advantage of the concurring problems in Africa to solve more problems while expanding their tentacles.
In 2015, according to the Africa Wealth Report, there are over 160,000 millionaires in Africa. In recent years, young entrepreneurs and investors have created lucrative business opportunities in Africa by providing unique products and services in Africa’s fastest-growing economies.
In this article, we will be exploring 20 Business Opportunities in Africa that are creating wealth in Africa. If you are an SME in Africa, here’s your chance to meet them. Let’s dive in!
Food Products
Africa is blessed with raw materials like cocoa, cassava and other foods that are exported every year. However, Africa still lacks the infrastructure to turn these raw materials into finished goods. And what are the results?
Africa spends large billions on the importation of their very own resources. However, some startups have risen to fix this anomaly. Startups like FairAfric and Garden of Coffee have risen to create made in Africa chocolate bars brands that have the potential to become big hits on the international market.
Solar Energy
Many rural areas don’t have access to reliable electricity. Some entrepreneurs have risen to the challenge of providing Africa with solar energy. Some of these providers include Off-grid electric and M-Kopa.
Education
Africa is blessed with young talents who are yet to explore their potentials. Unfortunately, Africa is plagued with high levels of illiteracy. However, some companies and institutions are rising up to tackle this problem. They include Andela, Bridge Academies and Omega Schools.
Real Estate
Africa is home to a multi-billion dollar worth of real estate opportunity. The biggest attractions are hotels and office buildings, residential homes and apartments, and shopping malls.
Fintech
With the increase in internet and mobile phones, businesses across the continent of Africa are solving financial problems using technology that banks do not offer. There are several fintech companies across Africa like Flutterwave. The Fintech industry continues to expand massively and remains one of the top businesses in Africa.
Transportation
The transportation industry is on the rise, and with the emergence of Taxify and Uber, transportation has become a lucrative business opportunity in Africa that you can tap into.
Startup funding
Investing in startup businesses is on the rise globally, and Africa is not left out. Across Africa, start-up companies are attracting the interest of venture capital, private equity, social impact funds and angel investors who are looking for higher returns on invested capital. This is a lucrative business opportunity in Africa.
Healthcare services
The health care service in the continent of Africa is plagued with challenges. A good number of entrepreneurs across Africa are tackling healthcare problems by applying technology and creativity. The health-care sector poses a huge business opportunity for entrepreneurs in Africa.
Arts & Crafts
How much do you think arts are worth these days? Antique and contemporary African art are sold at high prices in major world markets. In 2014, an antique African art was sold in New York for a record-breaking $41 million.
Retail
Across the continent, local and international supermarket brands are expanding massively. The competition is off the roof, and it is not just physical stores, but e-commerce is growing at an impressive rate.
App development
The digital economy in Africa is growing rapidly, and there is an increase in the development of mobile apps for various services. There are movie apps, hotel booking apps, shopping apps and many more. The development of apps continues to increase all over Africa.
Payment solutions
In Africa, over $100 billion worth of cash transactions are conducted. This presents a very lucrative business opportunity in Africa. In Nigeria, several businesses are contending to take over Africa’s biggest economy. This is a key business opportunity in Africa to watch out for.
Waste management
In Africa, there are huge amounts of waste being turned out daily. Africa can turn these wastes into meaningful businesses that eventually bring profit. For example, in Ethiopia, waste is converted into electricity.
Agricultural business
Agriculture continues to be a strong sector in the African continent. With the availability of God-given raw materials, agriculture has the potential to contribute a large portion of its GDP. There has also been a development in the agricultural sector as technology is introduced in the industry, thereby expanding the sector.
Automobiles
As Africans migrate from rural areas to urban areas, there is an increase in the demand for transportation services. It is no wonder that international brands like Toyota are digging into the African market. However, African companies have risen to solve the issue of transportation in Africa. Some of such companies are Innoson Motors, Kia motors and so on.
Tourism & Hospitality
Africa is known for its beautiful landscapes and scenery. It is no surprise that Africa is an attraction for people around the world. Tourism has hence become a very lucrative business opportunity in Africa.
Music
The music industry in Africa has taken centre stage in the world, as African music travels far and wide. International record labels are going into collaboration with Africans, thereby expanding the African music industry.
Fashion
Africa is blessed with beautiful fashion culture. Africa has lots of opportunities in apparel production where labor is much cheaper than on other continents. Africa is also blessed with lots of creative designers, changing the fashion game in Africa.
Digital Marketing
With the world becoming a global village, digital marketing has become a very lucrative business opportunity in Africa. Most businesses have taken their operations to the online space and are making massive profits in digital marketing.
Movie Industry
The African movie industry is one of the largest movie industries in the world. However, piracy and low quality production has limited its potential. However, the industry still produces lots of opportunities as African movies in recent times have won best selling awards.
If you are an SME in Africa and you are in search of business opportunities that will bring you profit, these are business opportunities you can look into.
Do you have any questions or suggestions on SMEs in Africa? Kindly drop them in the comments section below!
