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Investment opportunities in Africa

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 info@adgeafrica.com for more information.

We manage the risk of expansion into certain African countries.

Manage the Risk of expansion into other African countries

The Africa rising narrative may have been dampened by political turmoil and depressed commodity prices, but the economic potential of African countries is incomparable. Africa is emerging as a high growth region, with a rapidly increasing population, opportunities for innovation and a developing market.

Africa is made up of 54 sovereign states, each with their own ecosystem, culture and languages. Contrary to popular belief, Africa is not a large single country or a single market, each sovereign state’s economy is diverse.

As a result of the socio-economic growth, political stability in most African countries, improved educational programs and highly educated professionals; there has been a rise of multi-national organisations wanting to expand into the continent. However, many corporations expand their businesses into the continent without an in-depth understanding of local market dynamics. It is important to understand the different risks in the different African countries. A business looking to expand onto the continent needs to understand the Infrastructure, communications network, political environment, governance requirements, financial issues, economic issues, cultural setting, and a number of other factors in determining how to approach their target market.

Market understanding is key. Even Africa based companies need a comprehensive analysis before undertaking an expansion project into another African country. Adge Africa Risk Solutions understand the nuances and complexities of cross border expansion. Our team is equipped to provide advisory services for organisations wishing to expand into Kenya, Malawi, Mozambique, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. Contact us on info@adgeafrica.com for research, analysis and competitive intelligence on selected African countries.

Our team is able to conduct country research in the native languages in certain countries and within their sociocultural context.

We will help you manage the risks of expansion into other countries!

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ABOUT ADGE Africa

Adge Africa is an African Business Incubation organisation specializing in accelerating the growth and increasing the success rate of start-up and early stage Small and Medium Enterprises.

The Adge Africa Business incubator programme helps develop and support current and new entrepreneurs to start-up businesses and equip them for survival, longevity and growth as sustainable businesses....

FIND US AT
  • 43 Niven Road, Douglasdale, Johannesburg 2191, RSA
  • +2782 818 5344
  • info@adgeafrica.com

Adge Africa t/a BUA Technocomms (Pty) Ltd
Company Registration Number: 2015/ 086191/ 07

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