Are there business ideas in Africa that investors and budding entrepreneurs can take advantage of?
The answer is pretty obvious and a definitive YES!
Africa is a growing continent that has great potential and natural resources. Because there are many business opportunities in Africa, most entrepreneurs are now venturing in the continent.
They take this opportunity not only to gain money but also to improve the lives of the people in that region.
To be a successful entrepreneur in Africa, you have to look beyond the resources the continent offers, the Gold, Diamond, Copper, Oil, Timber and many other resources.
Instead, look at the problems the content is facing and how to solve them.
This will not only earn you money and make your business successful. It also helps to create value and touch the lives of the people in Africa.
Before you start any business venture, you need to consider which country is best for business in Africa?
1. START AGRIBUSINESS IN AFRICA
Are you ready to make money in Africa? Choose agriculture. Across the world, most farmers are financially stable, but not in Africa.
There are huge business opportunities for African youth graduates in the field of Agriculture and Agribusiness. Helping the African Youth and other entrepreneurs achieve this objective is rarely implemented.
But wait, is agribusiness in Africa really worth the investment?
Studies have shown that agribusiness plays an enormous role in economic development. It contributes to a more significant portion of GDP, foreign exchange earnings, as well as employment opportunities in many developing countries.
The trend in Africa is pretty obvious.
Agriculture accounts for more than 25% of the African Continent’s GDP and nearly 70% of all employment in Africa.
AFRICA TO OVERTAKE ASIA
According to the United Nations, Africa’s economic performance over the last decade has been remarkable, having reached an average growth of 5%.
If this growth is maintained, projections indicate Africa’s GDP should increase approximately threefold by 2030 and seven-fold by 2050, outstripping Asia’s.
This makes it a massive opportunity for entrepreneurs who want to invest in Africa and especially in the field of agriculture.
It is no wonder why the World Bank Group increased its Annual Agriculture Investment from $4.1 billion to $6.1 billion.
In Africa alone, the IFC is on a 5-year program to increase its investments in the agricultural sector to over $2 billion.
They can’t get it wrong, as they have a reason for that.
Africa imports most of her food yet most parts of the continent has favorable conditions for farming.
Farming in Africa is practiced on a small scale by poor farmers who have no access to modern farming methods and no capital to improve their agriculture.
Investing in farming in Africa will not only earn you money but also create job opportunities for the locals as well as increase food production.
2. Tourism and Hospitality: Africa is a choice destination for people from all around the world who troop in regularly to have first-hand experience of the rich culture and the beautiful scenery in Africa.
There are still a lot of untapped niches in the African tourism industry that you can tap into. For instance, Air B’n’B received a lot of direct funding when it came up with the innovative concept; you can come up with an innovative idea of your own too.
3. Shopping Malls: Many African countries are only beginning to embrace the shopping mall culture. You can get sizable foreign investment to finance your shopping mall project if you can find a strategic location that is sure to bring in a lot of traffic and income. Nigeria for instance, had a lot of foreign-funded shopping mall projects in some of its major cities in the last few years.
4. Money Lending Apps: Many people find themselves needing some quick cash before payday and many African countries do not have access to credit cards that can be used to settle some emergency bills before payday. This is what gave rise to money-lending apps that allow people to borrow money to offset some emergency bills. This is another business concept that can get you the attention of foreign investors looking for business opportunities in Africa.
5. Digital Banking Solutions: Digital banking solutions such as M-pesa in East Africa, is another innovative business idea. Due to the success recorded by M-Pesa in East Africa, many investors are looking for ways to break into the market as well.
6. Medical Marijuana: A medical marijuana farm with processing and packaging facilities is another trending business with a lot of foreign investment potential especially since the concept of medical marijuana is still a new one in Africa.
7.E-Commerce: There’s still a lot of room for fresh ideas and niches in the E-Commerce industry. Shopify came up with a unique type of E-commerce business that recorded a huge success in spite of the fact that the E-Commerce giants like Amazon and eBay seemed to have the entire market in their pockets at the time.
E-Commerce is one of the most profitable businesses in the world today as many people find it convenient to make their purchases from the comfort of their homes. Come up with a unique idea like Shopify and you can be sure that foreign investors will be willing to partner with you.
8. Cryptocurrency Startups: The Cryptocurrency revolution can no longer be ignored and foreign investors know this. Cryptocurrency startups are attracting a lot of foreign investors in Africa, and all over the world.
9. AFFORDABLE HEALTHCARE FACILITIES
Africa is facing a significant challenge in the health sector. Public hospitals are poorly funded, and most doctors from the continent move to other developed continents.
Strong economic growth in recent years has helped reduce poverty in Africa to over 43% of the population.
As Africa’s population expands, reaching 2.5 billion by 2050. The region faces a critical challenge of creating the foundations for long-term inclusive growth.
Many countries in Africa still contend with high levels of child and maternal mortality.
Malnutrition is far too common, and most health systems are not able to deal effectively with epidemics and the growing burden of chronic diseases, such as diabetes.
This leaves Africa at a deplorable state regarding health facilities. With the rapidly growing population and significant cases of diseases, an opportunity arises for entrepreneurs to provide affordable health to Africans.
This opens a great business opportunity for investors who are interested in the health sector. There is a significant number of middle-income residents who can afford good health care.
10. FINANCIAL CONSULTANCY FIRM
Africa is a developing nation with most people seeking to venture into businesses. There is a big business opportunity for entrepreneurs who can offer market research and investment advice for young entrepreneurs growing in Africa.
If these business ideas in Africa are pursued with a motive to develop the continent rather than exploit its citizens or the resources, then they can earn a huge sum of profit and make the business successful.
If you have any business idea for Africa use the comment section below to share it. Also, if you have found this article useful, share with your family and friends.