With a population of over 1 billion people ,Africa has become the continent with the highest investment opportunities. Investing in businesses that are both innovative and lucrative is key. Africa is a continent with a lot of resources in investing in the right market sector using the best resources and the best strategies and taking advantage of the huge market will yield high return on investments but there is a problem. Coming up with a business idea and developing it into a multi million dollar business has been a major problem . This is because the African market has not fully been understood. This is one of the major reasons that has made investing slow in the continent but once this market is understood, investors or potential investors stand to benefit from the huge opportunities and the chance to be billionaires especially if they are early and efficient in their chosen business sectors. In recent years, most of the new billionaires have been young entrepreneurs and investors who have created promising businesses and invested in lucrative sectors of Africa’s fast growing economies. Everyone knows Africa is the future, that is why many foreign investors from China, the United States and India are coming to invest in Africa. They have identified markets and they’re succeeding. There is a wide list of businesses in Africa that you can invest in and make so much money by our top four today are those that really stand out for decades. Business opportunities in Africa were created through traditional sources but nowadays things have evolved and there are many other new and unconventional opportunities
1. Real Estate
This is property consisting of land and the buildings on it along with its natural resources such as crops, minerals and more. Africa’s real estate market is a multibillion dollar opportunity and several new millionaires will build their fortune in this market. In almost every corner of the continent real estate projects are emerging. The biggest attractions are hotel and office buildings, residential homes and apartments and shopping malls. The key markets for real estate on every investor’s agenda are Angola, Nigeria, Egypt, Mozambique, South Africa and Kenya . All of these countries are experiencing a real estate boom like never before. Africa’s large and youthful population an expanding middle class increasing urbanisation the influx of multinational companies are the key drivers of demand for both commercial and residential real estate. Across the segment of the real estate market residential, official spaces, retail outlets, industrial and hospitality facilities are all in limited supply thus creating an Ave for investors and developers to tap in and benefit from these underserved needs .
2. Renewable Energy
According to World Bank studies it is estimated that in sub Sahara Africa only one in three people has access to electricity. Firewood and charcoal still remains the primary source of energy for cooking which endangers the continents fast appreciating force resources across the continents. Companies like off grid electricity and several others are lighting up the continent using solar energy and water to provide low cost electricity to households lacking them. Solar energy is one of the most attractive businesses in Africa right now, this is because of the significant potential for off grid solar solutions as the demand is massive. Over 600 million Africans are tired of waiting for energy from essentially managed power grid that is inefficient and inflexible to the continents growing power needs.
Africans enjoy about 300 days of sunlight in many parts. This makes it hard to beat the value proposition of a product that bypasses the central power grid and meet your energy needs by tapping directly from the sun, a free energy source. That’s why this solar market in Africa is booming. On Togo as solar system developer Bboxx $74 million partnership with the government to supply 300,000 homes with off grid solar kits. This is a business of the future.
3. Food Processing
Africa spends billions on the import of food and non food items yearly apart from local commodities like crude oil, cocoa, coffee and minerals what else of value can they export. There are a lot of local products on the continent that have the capacity to be world brands. The problem is we often minimize them. Recently in Ghana, some entrepreneurs are turning local African products into global brands by producing organic chocolate made by Coco. In 2018, the business raised about 50,000 euro’s from export investors.
Africa has a unique chance to create strong product brands that can track premium prices from foreign consumers. This will lead to the creation of thousands of jobs in small businesses will be created and supported by adding value to cocoa and coffee beans. However cocoa and coffee are only the beginning of much bigger ways of emerging business opportunities for value added food. Africa’s biggest problem is not food production but food processing and marketing. If Africa processes more food as they produce waste will be limited and there will be a drop in imported food.
4. African movies and music
Having a population of over 1 billion people of which 60% are young people below the age of 25. Africa presents a very fertile ground for its local film and music industry. The four biggest business opportunities in this industry are in film and music financing production, distribution an exhibition with less than one cinema per 1 million people. Africa is the most understaffed single market in the world, when it comes to music the growing fame of African music in the western world is generating millions of dollars for stakeholders in this industry.
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