What are the fastest-growing businesses in Africa in 2021?

What are the fastest-growing businesses in Africa in 2021? It is no secret that Africa is a fast-developing continent rich in human and natural resources. Businesses are springing forth from the rot despite the crippling challenges of insecurity, unfavorable policies, corruption, and other ills. These businesses are attracting foreign investors and creating employment opportunities. 

Fastest-Growing Businesses in Africa 2021

This article will explore 6 of the fastest-growing businesses in Africa and highlight a few tips to help you get started. 

1. Real estate business 
2. Retail business 
3. Food business
4. ICT business
5. Logistics business 
6. Fintech business 

Real Estate 

With the increase in urbanization, amongst other factors, the demand for residential and commercial properties has heightened over the years. Research reveals that countries like Nigeria experience housing problems needing over 16 million houses built. This demand presents a massive opportunity for potential real estate investors and entrepreneurs. 

Real estate branches out into diverse aspects, including sales and renting of houses, office spaces, lands, etc. It has also experienced some technological advancement, with the introduction of Proptech, a promising aspect of Real estate. 

How do you start a real estate business? Real Estate, just like any other business, first begins with research. There are a vast number of opportunities you can tap into. For example, you can buy your property and put it up for yearly rent or invest in a landed property. 

Tips on starting a real estate business

Here are a few tips to help you get started in real estate – one of the fastest-growing businesses in Africa: 

• Research on different aspects of real estate as well as the laws and certifications involved. This will help you curb the risks and prepare for challenges. 
• Create a working business plan outlining your goals and objectives 
• Register your business with authorities in your country 
• Create a website and promote your real estate business online and offline. 

Retail 

The retail business is one of the fastest-growing businesses in Africa, expanding across multiple African countries. This business has also experienced a shift due to the global pandemic. Today, the retail market has tilted from more traditional retail shopping to online shopping.

Jumia has become Africa’s leading retail business and it is valued at 1 billion dollars. Konga follows closely with a net worth of over 100 million dollars. 

With these expansions, it is clear that retail is undoubtedly filled with business opportunities. Research reveals that countries like Nigeria, Tanzania, Rwanda, and Namibia have the biggest opportunities in retail. 

Tips on starting a retail business

Retail is a lucrative business, and with a few tips, you can become successful. Here are a few ways you can get started: 

• Find your niche. What do you want to sell? 
• Create a business plan highlighting objectives, location, and target market. Will you be setting up a brick-and-mortar store or an online store? 
• Register your business with authorities in your country 
• Set up your physical or online store 
• Find your vendors and suppliers 
• Promote your business 

Food business 

There are several opportunities in the food business – from fast food to catering and food production. The space is evergreen as food will always be in demand. 

You can venture into producing food in large quantities and selling for profit. The fast-food business is also another lucrative aspect and thrives best in urban cities. You can also consider offering catering services at events. 

Tips for starting a food business 

Here are ways to start your food business:

• Find your niche. Is it fast food, a restaurant, or catering services? Will you specialize in local or international dishes? 
• Get a location 
• Create a business plan highlighting your objectives, value proposition, and so on 
• Promote your business. Remember that quality food is key to standing out as a food business owner.

ICT Business 

The ICT business is one of the fastest-growing businesses in Africa. It owes this popularity to the rise of the internet and its importance in the 21st century. 

ICT provides a wide range of business opportunities across Africa and the world. More businesses are marketing their services through digital platforms. 

Also, the advent of the Covid-19 pandemic has increased the need for digital skills like digital marketing, web design, search engine optimization, etc. 

Tips for starting a business in ICT

• Find your niche – Do you want to major in social media marketing, SEO, or perhaps programming? 
• Create a website and build your brand 
• Promote yourself on social media 
• Build a portfolio and find new clients 

Logistics services 

The advent of online shopping and delivery has made the logistic business one of the fastest-growing businesses in Africa. This billion-dollar industry presents a wide range of opportunities for potential business owners. 

You can transport raw materials, petroleum products, or household items to consumers. 

Tips for starting a logistics business

• Identify your mode of operation. Will you specialize in interstate or intrastate deliveries? 
• Research other successful logistic firms to identify their strengths and weaknesses. 
• Create a business plan that outlines your goals and strategies 
• Register your business 
• Gather capital and equipment. Will you need a fleet of trucks or bikes? 
• Promote your business 

FINTECH  

Africa holds about 500 fintech firms in countries like Nigeria, Kenya, Egypt, and South Africa. 

South Africa has the largest Fintech penetration. It has 94% of people having regular access, 67% with a bank account, and over 100 mobile phones for every 100 people. 

Fintech investments have also increased in Nigeria over the years, with most of the investments coming from outside the country. Despite a few challenges, the Fintech space continues to expand and presents a massive opportunity for potential investors and entrepreneurs. 

Tips for starting a fintech business 

• Research and know the legal requirements involved in setting up a fintech business 
• Identify your niche. Do you want to develop a lending app or a trading and investment app? 
• Find out what your unique value proposition is 
• Choose a tech stack for your fintech app development. Some of these tech stacks include Javascript, Python, and so on. 
• Critically consider data security for the protection of private information
• Get capital 
• Develop and improve your fintech application 

Conclusion 

While these are the fastest-growing businesses in Africa, there are several other sectors growing rapidly. These include film and entertainment, fashion, and several others. With technological advancements and the easy flow of information, you can jump on the train of the fastest-growing businesses in Africa today. You can check here for profitable business ideas you can start today. 

Do you have questions or suggestions on SMEs in Africa? Kindly drop them in the comment section below!