Africa is no longer a dark continent it once was. It’s economy is growing by leaps and bounds and the technological boom has taken over the whole country. The major tech companies of the world like Google, Microsoft, and Apple, all are heavily investing in different sectors of the African economy.
This has created an increased interest among entrepreneurs to start a business in Africa. And if you’re one of such entrepreneurs, here are 5 profitable business ideas in Africa:
5 Most Profitable Business Ideas
Many deadly bacteria and viruses that have been eliminated from the rest of the world are still wreaking havoc in African continent. Moreover, there are plenty of diseases that are endemic to Africa. Plenty of reasons could be attributed to this bad state of health in Africa, but one them is poor waste management and lack of hygiene.
According to statistics, there’s also a large gap between waste collection and its recycling as Africa only recycles 4% of its plastic waste.
So, this comes off as a big opportunity for aspiring entrepreneurs to step up and fill this waste gap.
Food And Agriculture
Despite having plenty of land, most African countries still spend tons of money on importing food. And that includes basic food items like rice, wheat, grains, etc. And it’s not that Africa doesn’t have fertile lands. It’s primarily the lack of resources and education that’s hindering the local production of food.
The opportunity here is huge. Because any entrepreneur who can resolve this issue by growing food locally will make a fortune. That’s because the billions of dollars that are spent on importing food would then be directed towards such local food production businesses.
The economy of the African countries is expanding, and so is the buying power of the people. This has led to increase in demand of supermarkets where one can buy quality products under one roof.
There are certain well-established retail marketplaces in relatively developed countries of Africa like Egypt, Morocco, and South Africa. But in the rest of the continent, the whole retail business is scattered and disorganized. So, it’s a great opportunity for entrepreneurs to work towards a solution that organizes this retail business.
Urban migration is on the rise in Africa. Because the economy is expanding, people are migrating to big cities to look for jobs and better lifestyle. As much as it’s a good sign for African economy, it also creates the issue of housing.
There aren’t enough houses to manage the migrating population. So, the business opportuniy here is a real state company that offers affordable housing. Alternatively, you can start a business dealing in construction raw materials like cement and steel.
Major tech companies of the world are heavily investing in the technology and internet sector of Africa. The form of investment ranges from opening tech hubs to funding startups. One recent example is that of Microsoft which recently partnered up with venture capitalists to fund 10,000 African tech startups.
Just because the big companies made the first move, it doesn’t mean that opportunities are gone. Africa is a continent with myriad of problems, so there will always be room for innovation. And if you don’t have any innovative ideas, you can simply fund African tech startups which have an almost 50/50 chance of success.
Currently, Africa is a trending destination for entrepreneurs mainly because of the endless opportunities it offers. There are plenty of sectors in Africa that could use an innovation or two but the highly profitable industries to do business with are housing, waste management, technology, retail, and agriculture. If you have knack for it, these sectors could give a high return of investment.