Africa has one of the world’s fastest-growing consumer marketplaces, with a population of over 1 billion people who are described as intellectual and brand-loyal. As a result of the continent’s increasing urbanization, experts predict that household consumption in Africa will reach $2.5 trillion by 2030.
The United States, France, the United Kingdom, and China are among the continent’s top investors, with China’s efforts alone creating more than 18,000 jobs. This demonstrates that Africa clearly has huge potential for those prepared to take a risk.
Highlighting the continent’s potential for investment, here are 10 African countries you should consider investing in and why.
Nigeria
Nigeria is one of Africa’s richest countries, with a nominal GDP of $504.2 billion, owing to immense natural resources, human potential, and the second-largest GDP in terms of purchasing power parity ($1.3 billion).
The country has the world’s sixth-biggest population, Africa’s largest economy, and is a fantastic area to invest. Nigeria is predicted to have a population of 215 million as of January 2022, with young people aged 0 to 14 accounting for 42 to 54% and those aged 15 to 35 accounting for 36%. By the end of 2050, the population is expected to reach 480 million.
The West African nation continues to be the most populous and major oil producer on the continent despite having a per capita GDP that is significantly lower than it had prior to independence.
Egypt
According to analysts, Egypt’s GDP would increase by 3.8 percent by the end of the year. The country’s GDP is also expected to rise by 5.20 percent in 2023.
Furthermore, both the World Bank and the International Monetary Fund, who are investing heavily in Egypt’s public infrastructure, are strong supporters of the Egyptian administration.
Egypt is an excellent destination to invest because to its geostrategic location, land availability, solar and wind energy capacity, skilled labor pool, and huge domestic market. It is perfectly capable of serving as an industrial base for the MENA and Africa. These are the tangible assets.
Egypt has the second-highest GDP in Africa, at $469.1 billion. Despite the pandemic’s severe consequences, the country’s GDP increased steadily in 2021. Because of its varied economy, which is fueled by fossil fuels, agriculture, and tourism, the North African country is also an excellent spot to invest.
South Africa
South Africa is one of Africa’s most important business hubs. South Africa, the continent’s third-richest country, is also the most industrialized and technologically advanced. It features a dual economic structure, with one sector competing favorably with developed countries and another in desperate need of basic infrastructure.
South Africa boasts one of the world’s fastest-growing consumer markets and is a “comparatively” low-risk area for doing business in Africa, according to the US Department of State. Foreign investment are welcome in the Southern African country, particularly in manufacturing and other labor-intensive businesses.
South Africa’s economy has diversified since the end of apartheid, particularly in the services sector, even though the country’s natural resource extraction industry—particularly that of chromium, manganese, gold, and platinum—remains one of the largest, contributing 13.5 billion dollars to the country’s GDP annually.
Algeria
Foreign direct investment in Algeria’s renewable energy, tourism, and liquidity reserve is profitable. Oil and gas, which account for 60% of the government budget, are the nation’s economic underpinning.
Furthermore, depending on the location and size of the project, Algeria offers investors up to ten years of exemption from VAT, customs duties, corporate income tax (IBS), business activity tax (TAP), property tax, and other benefits under its investment incentive policy.
In 2013, the Algerian government demonstrated its financial strength by canceling $902 million in debts held on behalf of 14 African Union countries.
Morocco
Morocco’s relatively stable political structure contributes directly to its healthy economy, which is stronger than that of any other country in Sub-Saharan Africa.
According to the most current World Bank annual rankings, Morocco ranks 53rd out of 190 economies in terms of business ease. Morocco moved up from 60 to 53 in the 2019 ranking.
Furthermore, the country’s strategic location between Europe and Sub-Saharan Africa, solid infrastructure, and political and currency stability all contribute to its relatively inexpensive labor costs.
Angola
Angola is Central Africa’s richest country and Africa’s sixth richest. The country has both agricultural land and large oil and gas reserves.
It is the continent’s second-largest producer of oil. Trade, transportation, storage, building, and fishing all contribute to Angola’s GDP, according to a report on the country’s investment risks and potential. These markets provide investors with opportunities for growth.
Furthermore, Angola’s oil and gas industry is supported by a well-established infrastructure, allowing prospective investors and project developers to reduce costs and accelerate the development of new projects.
Kenya
This East African country serves as the continent’s logistical, economic, and commercial centre. This is being driven by young digital entrepreneurs, particularly those in the fintech sector. Foreign investors are also drawn to emerging enterprises that strive to make a beneficial social effect.
Kenya is an excellent area to invest due to its strong economy, robust demand for goods and services, and friendly business environment. Tax reforms and financial measures that make doing business in the country easier have enhanced the business climate.
Kenya’s bright growth prospects are supported further by the country’s growing middle class and increased demand for high-quality goods and services. Because of Kenya’s favourable business environment and strong economy, many companies have been able to lower operating expenses and increase profit margins.
Furthermore, according to the World Bank’s Doing Business Report, Kenya is the 56th most business-friendly country in the world.
Ethiopia
Ethiopia is an attractive investment destination due to its role as one of the world’s top coffee growers and the second-largest exporter of African flowers.
Ethiopia is one of Africa’s wealthiest countries, with one of the world’s fastest-growing economies and the world’s second-most populous country.
Droughts, food shortages, and political upheaval have affected Ethiopia’s agricultural economy, but the country is rapidly shifting to an industrial and export-based economy.
As the continent’s second-largest recipient of foreign direct investment (FDI), Ethiopia has maintained a strong level of investor interest as one of the top investor destinations. The recent inauguration of the African Continental Free Trade Area (AfCFTA) is expected to stimulate investment as well.
Ghana
Ghana is one of the continent’s most democratic and politically stable countries.
The country’s economy grew at the quickest rate in Africa in 2019 and continues to outperform economists’ projections.
The tenth-richest African country is a major producer of natural gas and petroleum, having the sixth-largest crude oil reserves in Africa and the twenty-fifth-largest reserves in the world.
Ghana has meat, fish, and poultry, but agriculture, particularly cocoa and gold production, accounts for over half of the country’s GDP.
Farmers’ major source of income is often cocoa and its derivatives, which account for two-thirds of the country’s exports. Ghana produces lumber, palm oil, coconuts, and other palm tree products in addition to shea, which is used to extract edible fat and coffee.
The country has established itself as a top business destination for investors seeking a favorable business environment, committed and progressive government-private sector cooperation, political stability, transparent rules, and a vibrant private sector ready for partnerships.
Cote D’Ivoire
Over the last ten years, Côte d’Ivoire has witnessed consistent and substantial economic growth, making it one of Africa’s undervalued developing markets.
Infrastructure initiatives backed by public and private investment continue to pique the interest of venture capitalists and private equity firms. Other industries in Côte d’Ivoire to watch for are construction, manufacturing, agriculture, transportation, and energy, all of which encourage foreign direct investment.
Its fair business environment is supported by a stable political climate. Furthermore, the country has excellent infrastructure, including the second-largest seaport in West Africa, airports, and roads.