The conversation about Africa has undergone a radical shift over the past few decades. Previously, everyone from business investors to global politicians talked about its population bulge, the ‘gap’ between demand and supply of basic services and ‘deficits’ of all kinds i.e. fiscal, monetary and trade.
Currently, ask any person who is a little knowledgeable about Africa, and you’d hear them talking about opportunities, ventures, and prospects. However, while the way the world sees Africa has changed, not many investors are aware of ideas using which they can capitalize on this continent’s promise.
Hence the reason why we came up with this article. Our experts on the ground have narrowed down the top 5 business ideas using which you can make big bucks in Africa.
Given the fact that Africa has 60 percent of the world’s fertile soils, uncultivated arable lands, all-year sunshine, and abundant farm labor, it shouldn’t surprise you to read the World Bank report which claims that Africa’s agribusiness would be worth $1 trillion within the next decade.
What’s more, despite having so many natural resources, Africa stills imports 70 percent of the wheat it consumes every year. That means that if you are an investor with focus on agribusiness, Africa is a potential goldmine for you to exploit.
2. Transportation services
A report by World Bank states that the number of Africans living in urban areas is expected to touch the 50% mark within the next decade. With so much people coming into the cities, the latter will undergo an exponential horizontal growth, increasing the demand for cost-effective transportation services.
Additionally, while globally every 1,000 people have 180 vehicles, in Africa the average is 44 vehicles per 1,000 persons. That leaves a lot of potential for growth for any automobile industry willing to invest in the transportation sector in Africa.
3. Healthcare sector
At the time of writing, Africa has a poorly functioning public health system. The absence of governmental spending in this sector has further exacerbated the problem, with the result that Africans currently share 25% of the worldwide disease burden.
In such a bleak scenario, there’s a ray of hope for the investors. IFC states that the continent’s healthcare market is expected to double by 2030, which means that within the next decade, Africa’s healthcare market would be worth $42 billion.
4. Education sector
To give you just one sample of the scale of the illiteracy problem that Africa is facing, South Africa ranks 56th out of 60 countries in Connecticut State University’s illiteracy rankings. The country enjoys exactly the same ranking for computer illiteracy.
As an investor, you can offer services which would help eradicate the impediments to access to education in Africa. That might include anything as large as a chain of international schools to as small as a mobile app which can help potential pupils study at home.
5. ePayment solutions
Only a few years ago, M-Pesa, an ePayment service provider, opened its services in East Africa. So huge was the demand for its services that with less than a decade of experience under its belt, M-Pesa now handles over 200 p2p transactions per annum.
Consequently, if you’re a software developer who is interesting in providing services to the people, you might come up with your own ePayment solution to tap the vast African market.
Final word – How to make the most of these opportunities?
Provided you want to fully exploit any of the business opportunities that Africa has to offer, hire a lobbying firm which knows the ins-and-outs of this continent. Provided you do that, here’s how it will help you in realizing all your business-related goals in Africa:
– Cut red tape: Start your business without bureaucratic impediments.
– Huge database: Get a lowdown on potential customers and competitors.
– Make contacts: Reach close to business leaders in your target industry.
– Influence policy: Make sure that government policy doesn’t harm your business interests.
Therefore, whether they are from the above mentioned list or a figment of your own imagination, a lobbying firm has what it takes to help you fully exploit the profit potential which the various opportunities in Africa have to offer.