The African continent is understood by many successful entrepreneurs as a turf with vast opportunities for a profitable investment. The rationale underlying this notion revolves around the investment infancy that characterises Africa as well as a dearth in a number of development avenues. Unlike other more developed continents, Africa tends to lag behind in terms of coping up with modern trends in the business world and technological advancements that come with these trends. However, quite a number of African billionaires have made it in Africa’s harsh economy. Below are some of the viable business sector and opportunities that can be explored within the African parameter:
1. Agri-business
Africa is known for its underwhelming food security and malnutrition. The catastrophe of food insecurity in Africa has been exacerbated by the advent of climate change leading to sparse rainfall, uneven rainfall patterns and undesirable weather conditions for specific crops. The good news however, is how this presents an opportunity for entrepreneurs who are keen to tread the path of agriculture so as to ensure food security. In its various forms such as crop husbandry, horticulture, fishing and animal husbandry, agriculture is a force in Africa’s economy. The World predicts that agriculture alone can form a trillion dollar economy in Southern Africa by 2030. With such alarming stats, agricultural development as a central activity for African development can see through a number of entrepreneurs in the whole continent.
2. Fintech and E-commerce
Fintech is one of the fastest growing businesses for venture capitalists and start-up entrepreneurs alike. The idea of technology supporting banking services and mobile money in Africa is being embraced at a lighting pace. Benin millionaire entrepreneur Dare Okoudjouis a good example of the fascinating opportunities that are brought about by fintech in Africa. As a result of mobile banking and mobile payment through penetration of technology in Africa, this sector is quite viable for start-up entrepreneurs. On the other end, the exponential rise in smartphone ownership in Africa has significantly opened investment gates in this sector since it facilitates e-commerce and its convenience for the urban African. The need to expand the same to the rural folks also presents an avenue in want of exploration.
3. Energy sector
The energy sector presents a hoard of business opportunities for budding entrepreneurs and start up business ventures. Through the mooted phasing out of coal which has been the traditional power source for the continent, Africa is set to experience scarcity of power generating solutions. However, the call for the adaptation of green energy through the use of clean sources such as solar energy and wind energy, the sector is set to enjoy a significant boost. This thereby presents viable business opportunities for suppliers of solar powered equipment in power depended areas such as mining, agriculture industries. Given how Africa’s fastest solar plant is lighting Rwanda, there is definitely a need to unravel this sector.
4. Telecommunications
The telecommunications business area is infamous for having made some of Africa’s prominent billionaires like Zimbabwe’s Strive Masiyiwa and Nigeria’s Mike Adenuga. The venture has resiliently managed to accommodate start-up entrepreneurs around the globe as a show of its everlasting potential. Given the lack of internet access which translates to a shortage of affordable channels of access and service providers, there is definitely more that can be done to develop this industry. The year 2022 has seen an increase in access to social media platforms such as Twitter by Africans in a bid to voice out their concerns against several authoritarian regimes. This explains the growing demand for smartphones and cheaper internet in most African countries, pointing towards the profitability of this industry and the gaps that need to be filled in by start-up businesses
5. Education
Education is a fundamental sector that needs to be explored in Africa. Africa is home to the youngest population in the world and this is a reflection of the ongoing upsurge in the demand for education and educational facilities. In most instances, certain parts in every African country are reported to not have a school or adequate classrooms to accommodate learners. An investment on the education sector through service provision, infrastructure development and supply of material can go a long way in covering the existing loopholes while also generating millions of profits.
6. Infrastructure development
Real Estate and Infrastructure development in Africa present a host of opportunities for entrepreneurs in Africa. Many African governments are jostling to spruce up their colonial infrastructure in the form of roads, malls and buildings. A lot of investment is also being channelled towards the construction of more buildings and shelter for the increasing citizenry. Accommodation is scarce in Africa and the desire to own a house is inherent in every human being. Increasing business ventures by multinational companies as well as urbanisation have led to a compelling demand for cheaper commercial premises and residential houses. The supply of cheaper building materials is also a consequential requirement in this avenue and is worth billions as proved by Africa’s wealthiest man, Aliko Dangote. Where investment in this sector is made, a highly profitable return is inescapable.
