Africa, as a continent, offers great returns for investors as compared to most emergent economies. Many African countries supply raw minerals to developed nations, however, there are other untapped investment opportunities. For a start, the continent has a population of over a billion people.
There are numerous opportunities in various industries like retail, infrastructure, agriculture and manufacturing.
Retail: Africa has a growing population with growing demands. The African Development Bank (AfDB) estimates that consumer spending will reach USD$ 2.2 trillion by 2030, this provides a huge opportunity to retailers. For example, Lagos Nigeria, has a population of 22 million, with a fast growing middle class, this presents a captive consumer market for any retailer. Wholesale and retail sales are currently being fuelled by a new generation of Nigerian consumers.
Infrastructure: Africa is still being developed, and thus there are needs for energy, communication, housing, roads and other forms of infrastructure. Africa has a trend of migration from rural areas toward cities, where job opportunities are assumed to be more plentiful. The growing populations in the cities will continue to require accommodation, transport systems and the relevant infrastructure to cater to their needs.
Agriculture: Sub Saharan Africa has vast tracts of fertile land, and it has the capacity to grow the world’s food. The continent has a culture of subsistence farming, so commercialising agriculture is a viable enterprise. The growing population creates an opportunity for farmers to produce more. Africa has the necessary resources like land and fertile soil, which can be utilised to capitalise on market opportunities in the global food industry.
Manufacturing: The continent has the capacity to manufacture and consume its own products with excess for other markets, but has not yet capitalised on manufacturing as an industry. For instance, Africa produces about 75 per cent of the world’s cocoa but accounts for just 5 per cent of the nearly $100 billion annual chocolate market. With its “High 5 Agenda,” the African Development Bank (AfDB) has made industrialisation a top priority.
Retail, infrastructure, agriculture and manufacturing are not the only areas within which there are opportunities for investment in Africa. Healthcare, mining, and technology also provide lucrative opportunities for willing investors.
Various opportunities exist in Kenya, Malawi, Mozambique, South Africa, Tanzania, Uganda, Zambia and Zimbabwe for those who are willing and able. Adge Africa can help you navigate the market economies of certain African countries, contact firstname.lastname@example.org for more information.
We manage the risk of expansion into certain African countries.