TOP 5 BUSINESSES TO PUT YOUR MONEY IN AFRICA

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Africa is a growing continent that has great potential and natural resources. Because there are many business opportunities in Africa, most entrepreneurs are now venturing in the continent.

They take this opportunity not only to gain money but also to improve the lives of the people in that region.

To be a successful entrepreneur in Africa, you have to look beyond the resources the continent offers, the Gold, Diamond, Copper, Oil, Timber and many other resources.

The term “millionaire” is taking on a new meaning in Africa.

It’s no longer just about the size of your bank account; any shady politician, corrupt bureaucrat, or unscrupulous businessman on the continent can easily claim to be a millionaire. But Africa’s new and emerging generation of millionaires are not just excited about money. They’re also passionate about impact; they want to create value that touches and improves people’s lives.

It’s called impact entrepreneurship. It’s the new way of making money and doing good, at the same time. It’s a model that is proving that profit and ambition do not always have to come at another’s expense.

Remember, the bulk of Africa’s “old school” millionaires made their money from resource extraction and sheer opportunism. Often, their wealth had to come at the expense of the common good and the natural environment.

But Africa’s new wave of entrepreneurs are showing no keen interest in the continent’s finite resources; its timber, gold, copper, oil and diamonds. Rather, they’re far more interested in a much more valuable resource: problems.

Africa is a continent overwhelmed by serious problems, from unemployment and illiteracy, to hunger and inadequate electricity. As you’re about to find out in this article, this new generation of millionaires are focusing on the continent’s problems because solving these problems will unlock massive streams of wealth, jobs and prosperity for the continent. Most of these problems are tough, widespread and decades old. But while they are scary and frustrating to most people, entrepreneurs see them for the breathtaking opportunities they really are.

Here are a list of 5 Businesses that are booming in the continent…

 1.  AGRIBUSINESS

Are you ready to make money in Africa? Choose agriculture. Across the world, most farmers are financially stable, but not in Africa. There are huge business opportunities for African youth graduates in the field of Agriculture and Agribusiness. And that was the conclusion of the 2-day African Youth Agripreneurs Forum that was held in April 2017 in Ibadan, Nigeria. Helping the African Youth and other entrepreneurs achieve this objective is rarely implemented. But wait, is agribusiness in Africa really worth the investment? Studies have shown that agribusiness plays an enormous role in economic development. It contributes to a more significant portion of GDP, foreign exchange earnings, as well as employment opportunities in many developing countries.

The trend in Africa is pretty obvious. Agriculture accounts for more than 25% of the African Continent’s GDP and nearly 70% of all employment in Africa. According to the United Nations, Africa’s economic performance over the last decade has been remarkable, having reached an average growth of 5%. If this growth is maintained, projections indicate Africa’s GDP should increase approximately threefold by 2030 and seven-fold by 2050, outstripping Asia’s. This makes it a massive opportunity for entrepreneurs who want to invest in Africa and especially in the field of agriculture. It is no wonder why the World Bank Group increased its Annual Agriculture Investment from $4.1 billion to $6.1 billion.

In Africa alone, the IFC is on a 5-year program to increase its investments in the agricultural sector to over $2 billion. They can’t get it wrong, as they have a reason for that.

Africa imports most of her food yet most parts of the continent has favorable conditions for farming. Farming in Africa is practiced on a small scale by poor farmers who have no access to modern farming methods and no capital to improve their agriculture. Investing in farming in Africa will not only earn you money but also create job opportunities for the locals as well as increase food production.

2. WASTE

For decades, waste has been a huge and nagging problem in Africa’s urban areas. Currently, most of the waste generated in Africa is either burned, buried or thrown away. As a result, more than 80 percent of solid waste produced on the continent ends up in landfills or gets dumped in water bodies.

And as the continent’s population continues to rise, the waste problem will only get worse. So, what do we do with all the growing heaps of filthy waste before we find ourselves in the middle of the worst environmental crisis the world has ever known?

In South Africa, the solution appears to be to convert waste into animal feed. AgriProtein is a business that grows maggots from waste collected from markets, households and businesses. The maggots are processed into a highly nutritious protein supplement that substitutes fish meal in animal feed. The company has raised up to $30 million in funding, making it one of the best-funded insect farming businesses to date.

In Ethiopia, the solution is to convert waste into electricity. The Repi waste recycling factory in Addis Ababa will produce 50 megawatts of electricity from waste collected from across the city. The facility is expected to supply 3 million homes with electricity, and avoid the release of millions of tons of CO2 to the atmosphere.

Across the continent, entrepreneurs are hard at work trying to squeeze out value from waste, and in the process, they’re creating an industry that could provide both low and high-level jobs for thousands of people.

From the trend of waste recycling and transformation initiatives I’ve observed, there’s only one place this is heading to. I predict that over the next decade, waste will become a valuable commodity that households and businesses can sell for money. And the waste is likely to return to the food chain, to the electricity grid, or in some other recycled form.

3. AFFORDABLE HOUSING

Africa is experiencing the world’s highest rate of rural-to-urban migration. And by 2030, it is projected that up to 50 percent of the continent’s population could be living in towns and cities. Urbanisation is great, but where will all these people live? And even if the governments tried, they cannot build homes fast enough to meet the teeming demand for accommodation.

In Nigeria, Africa’s most populous country, the housing deficit is estimated at 20 million homes. In South Africa, the deficit stands at 2.3 million homes. Africa’s housing crisis opens a lot of interesting opportunities for several industries; from cement production and furniture making, to building contractors and mortgages.

It’s no surprise Africa’s richest man, Aliko Dangote, has expanded his presence in cement production across several countries on the continent. His interests in cement now make up a significant portion of his net worth. But beyond conventional housing, there is an interesting trend of homes being built from cheap and durable alternatives, like shipping containers.

In Cape Town (South Africa), building contractors like Berman-Kalil are offering sustainable and affordable housing options by converting decommissioned shipping containers into low-cost homes.

In Kenya, entrepreneurs like Denise Majani are also converting shipping containers into amazingly creative residential and office accommodation at half the price of contemporary housing. These alternative options are significantly cutting down the cost of building homes, making them affordable to a larger segment of the population. So far, most of Africa’s housing developments have focused on the premium and elite segment of the market. While the large margins from this segment have been very lucrative for investors, the biggest opportunities will emerge from providing housing at scale, and at affordable prices.

4. AFFORDABLE PRIVATE SCHOOLS

Africa is experiencing a major deterioration in the quality of education in public schools. This is due to corruption, poor education funding and increased population. As a result, to ensure children get a better education, most parents in Africa are opting for private schools.

Establishing a private school is one of the business ideas in Africa that some entrepreneurs have already taken advantage of, and they are making a good return on their investments.

Education is the most powerful weapon which you can use to change the world (Nelson Mandela). Many African countries could not meet the Millennium Development Goal (MDG) of universal primary completion by 2015.

There has been no progress when it comes to reducing the global numbers of the out-of-school children even after years of adoption of the Sustainable Development Goal 4 (SDG 4). According to the UNESCO Institute for Statistics,  total primary enrollment for Sub-Saharan Africa was about 101 million students, of which 10 percent (or almost 10 million students) were from the private sector. Total secondary enrollment was 31 million students, of which 4 million representing fourteen percent (14%) were from the private sector. The total tertiary enrollment was 3 million students. The combination of investment and advisory services has been very effective in meeting the demand, including low-income families.

Looking at cost of education In Kenya for instance, annual tuition in some schools is as little as $60 per year (18 U.S. cents per day). In Ghana, many parents are sending their children to private schools as an escape from poverty. Governments are relying increasingly on the private sector to help fulfill public policy objectives in education. Demand for private schools in Africa is still high. As an entrepreneur, I will advise you to utilize this business opportunity in Africa. This will help to promote accessibility to better education in Africa.

5. URBAN TRANSPORTATION BUSINESS

As more people continually move to the cities, there is a need to increase urban transportation. Poor infrastructure, inefficiencies, and congestion torment Urban dwellers as they commute within the city.

Introducing efficient, comfortable and affordable modes of transport is a huge gap for the African nations that can earn entrepreneurs millions of money.

There is no doubt that urban transportation is one of the huge business ideas in Africa.  An example of this mode of transport is Uber.

CONCLUSION

You have it now. These are just a limited list of the endless business opportunities for the budding and vibrant youth of Africa. It doesn’t mean only the people of Africa who can establish these businesses on the continent. For example, entrepreneurs from United States of America (US), India, Unites Kingdom (UK), China, Canada, Vietnam, Indonesia, France, and many other countries are making huge investments in Africa. If you have any business idea for Africa use the comment section below to share it. Also, if you have found this article useful, share with your family and friends.