Investment Opportunities in Africa You Can Tap Into

When considering where to invest, it is important to note that Africa houses a lot of untapped resources and opportunities and it presents a rich diversity of exciting opportunities for foreign investors.

With a population of over 1.3 billion people and significant natural resources, many foreign investors are doing a lot to invest in Africa. There are 54 countries in Africa which are broadly divided into the Sub-Saharan Africa (SSA) and the Middle East and North Africa region (MENA).
Northern Africa countries are known for their extensive crude oil reserves, for instance, Libya is the eight largest reserve in the world and houses Africa’s largest oil reserves. Over 10% of all crude oil imported into Europe comes from Libya.

Why Africa?
According to the World Bank, the rate of returns on foreign investments is higher in Africa than any other developing region and it is quite apparent that Africa has a potential market untapped.
In spite of the recent global recession, Africa economies have shown sustainable growth over the past decade.

Return of Investment
Reports have shown that many foreign investors remain confident in the high returns of investment in Africa. Africa features among the World Bank’s listing of the ten fastest growing economies in 2018. There is a significant rise in the Gross Domestic Product (GDP) with countries like Ghana and Ethiopia topping the list at 8.3% and 8.2% respectively.

See also: Horticulture Business in Africa

Consumer Market
Africa has a booming population of over 1.3 billion people and according to the World Economic Forum, this figure will soar to 1.7 billion people in 2030 with ‘consumers and business spending’ hitting $6.7 trillion. It is advisable to invest now so that your business will grow alongside the continent’s population and spending prospects.

Agriculture
Agriculture plays a significant role in the economic and sustainable development of nations. It contributes up to 23% of GDP and employs an average of 55% of the population in Africa. Investing in the surplus variety of produce will generate funds through exportation. The total agricultural area in Africa is about 1.13 billion hectares. The weather is favorable and land is cheap compared to other parts of the world. Most of the landmass has been largely untouched and they have the capacity to produce both food crops and cash crops in large quantity. Agribusiness is on the rise across the continent and it promises a wealth of investment opportunities.


Information Technology
There is an increased integration of technology in finance, commerce, agriculture and other sectors in the continent. Software development firm Andela, which has offices in Nigeria, Kenya and Uganda, has accrued over $80 million in funding since its 2014 launch. There are so many fintech, ecommerce, agribusinesses and hubs fueled by advancements in technology.

Logistics & Transportation
There is a need for transportation infrastructure to aid intra-continent trade within Africa because of the underlying problem that is a debilitated transport system. Ride-hailing companies like Uber, Taxify, TaxiJet, Oga Taxi, Careem, Mondo Ride, Taxi Dali, ZayRide etc., are flourishing in Africa and this has brought about market competition. Uber alone has over 1.3 million riders in sub-Saharan Africa alone, and has extended its footprint to 15 cities in 8 countries including North Africa.

Also, forecasts reveal that the demand for trucking and haulage will double across Africa within the next 10 years as a result of increased economic commercial activities on the continent. Manufacturers need to get raw materials to the factories and the finished goods need to get to warehouses and ports. There is room for investors and growth in the transportation sector.

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