If you are an entrepreneur or investor searching for an investment opportunity or looking to start a business in any of the African countries, then this article will give you an insight on some of the top investment opportunities in Africa. Years ago, Europe was the favorite economy of the world, until America became the world’s economic power. Asia boasts the highest number of countries with the fastest rising economy followed by Africa. Africa is perceived to be one of the frontrunners of future economic growth next to Asia.
Africa’s foreign development investment has tremendously developed over the past decade. It is forecasted to have a $150Billion growth with Africans themselves leading the investment growth across Africa. So read through the list of top investment opportunities in Africa and small business ideas in Africa.
Top Ten investment opportunities in Africa
Below is the List of the top ten investment opportunities that every serious investor can succeed on.
- Fiber Optics + Internet service provision
- Industrial Zones and Free Trade Zones
- Government Tenders and Contracts
- Outsourced Business Process Services
- Real Estate Development
- Health Care
- ICT Infrastructure
- Power generation
- Payment Solutions
1.Fiber Optics + Internet service provision
Africa is opening up to the world, and there is a tremendous increase in the demand for quality telecommunication and internet service. TVideo and web conferencing, web TV have not yet been fully tapped in Africa because of the reduced internet speed in most African countries.
Fiber optics cable opens doors for Africa investment opportunities, outsourcing business and e-commerce ventures as the price of internet connection will be lower.
Companies such as MainOne and Glo in Nigeria are in the lead in the laying of fiber optics cable, but since the industry is not yet economical and other African countries are still unexploited.
2.Industrial Zones and Free Trade Zones
Industrial and free trade zones are emerging fast in Africa, and South Africa is taking the lead. It proves that African governments are determined to improve world ranking.
Investors should consider the industrial zone because it offers an economic advantage with its strategic location near local and national transportation links. It is also an opening to more Africa investment opportunities and jobs. The businesses established will support the growing manufacturing industry and add value to the economy.
3.Government Tenders and Contracts
Acquiring government and non-government tenders is next in the top 10 business opportunities in Africa. Since Africa is an underdeveloped continent, governments of different countries have an open market policy making their tenders an opportunity for business. Government tenders and contracts are proving to be one of the top investment opportunities in Africa. Most African governments always advertise the tenders for anyone interested.
4.Outsourced Business Process Services
On the list of Africa investment opportunities is Business Process Services. BPS makes administrative and operating costs lower. Hence making it easy and possible for the business to offer new services, improve core business activities and enhance customer service. With the massive population and jobless graduates, technicians an investor can create a firm that will deliver administrative services to developed countries at an affordable rate.
Data entry, database management, call center operations, and customer care services are services that most developed countries outsource to countries with a skilled but affordable workforce.
5.Real Estate Development
Real Estate is also on the list of Africa investment opportunities. Buying or developing residential or commercial property in Africa is very advantageous due to appreciation over the past years.
The demand for commercial real estate in South Africa, Nigeria, Ghana, and Kenya has risen to 400%, due to foreign investors and the increasing demand for offices by new ventures.
Regardless of the area of real estate, you venture into either residential or commercial; you are likely to reap big.
Health care is sixth in the top 10 business opportunities in Africa. Healthcare standards in Africa are low when compared to standards in Europe, Asia, and America. Secondary and tertiary health care services are a high potential investment in Africa. However, health management, research, and information technology ventures are lacking.
Most people seek medical checkup and delicate surgeries such as heart and kidney transplant abroad due to an obsolete and unreliable system.
Since Africa’s communication and information technology, it is a sound investment opportunity is lacking. Local IT and communications companies are looking to expand their business and are searching for foreign investors to make it possible; this creates opportunities for private investors to improve its operations in return for a profit.
Eighth in the top 10 Best African investment opportunities is Nigeria’s need for infrastructure in generating power. The government, in fact, has envisioned attracting $100 billion in investments over the next five years for its energy sector.
Power generation has not reached its full potential because the primary source of power in Africa is Hydro, which is still under-utilized while solar, wind and nuclear are still untapped.
It is Africa’s untapped goldmine and a major potential source of millionaires. With a huge percentage of the world’s uncultivated arable land, fertile soils, abundant labour, and sunshine all year, sub-Saharan Africa surely has the potential to become the world’s biggest exporter of food products.
More African and foreign entrepreneurs are tapping into the best African Investment opportunities including the agribusiness sector.
Due to the harsh impacts of low crude oil prices, sleeping agribusiness giants such as Nigeria and Angola waking up and are focusing on agribusiness as a means to diversifying their economies. Governments in these countries are now more open and supportive of agribusiness initiatives.
More than $100 billion in transactions are still done in cash in Africa annually. It presents a huge and lucrative financial services opportunity for savvy entrepreneurs.
Since the introduction of M-Pesa in East Africa, the mobile-based money transfer and payment service has been phenomenal in Kenya and Tanzania. The platform manages more than 200 million person-to-person transactions annually.
Thereg is a massive scramble for Africa’s next big money transfer and payment service in other parts of the continent. Several promising businesses are struggling to dominate Africa’s largest economy in Nigeria. Some of the top contenders are in the country are Paga, PayAttitude, and SimplePay.
Every sector of the economy in Africa has tremendous untapped potential. These areas include technology, agriculture, food industry, services, real estate and others. They all have the ability to yield a good return on investment. From the list, you can see some of the best African investment opportunities can turn any business into a multi-million investment. From a global viewpoint, Africa is still at the lower end of the investment spectrum. However, there are numerous opportunities for entrepreneurs. African governments should work together with both local and foreign industrialists to invest in Africa and realize the full economic potential of the continent.