Africa’s population is booming at the highest rate in the world. In fact, it has become the second largest populated continent on the planet. This emerging market is providing many growth opportunities for would-be entrepreneurs and businesses looking to diversify.
Image source: Business Insider
Investors can expect fruitful return on investment by sowing capital in selective bull markets of Africa. Here are a few suggested sectors where people passionate to become entrepreneurs and eager to earn profit by touching people’s lives and offering value to them, can get involved;
Low Cost Education
Africa’s population is growing at the rate of 2.5 percent per annum (as of 2017). With the increase in population, the demand for quality education is also increasing. This increase in demand means calls for an additional supply of quality education. The governments of Africa are currently unable to cater for this increased demand so there is great opportunity for the private sector to get involved in the education sector. Parents are willing to dispose a large portion of their income to give quality education to their children. Companies are ready to invest in training of their employees and giving them opportunities to learn courses to advance their careers. So, businesses providing education services can earn great profits with a reduced risk of failure.
Agriculture is huge business around the world but in Africa farmers are still struggling to keep up. Though there is a suitable climate for agriculture in most parts of Africa, still around 60% of the world’s fertile land in Africa is unused. The reason behind the slow growth in this sector is the lack of monetary and infrastructure resources for farmers. These poor farmers are still using crude techniques for farming. Thus, business-oriented folk can seek this opportunity by providing capital to rural farmers in Africa to cultivate unused land and produce food in their home countries. This will reduce imports of food into their countries and bolster their economies.
People are migrating from rural to urban areas in Africa at a high rate compared to other countries in the world. These people want houses to live in so this is one area with profitable opportunities for businesses. It is projected that by 2030, around 50% of the African population would be living in towns or cities. Today, there is a deficit of 20 million homes in Nigeria which is the most populous country on the continent. This crisis opens up a golden opportunity for various industries like cement, construction, furniture and many others. Entrepreneurs can take advantage of this opening and capture a large market share by providing affordable resources to build houses. Contractors can also convert decommissioned shipping containers into affordable and sustainable accommodation.
Loaded migration of people from rural to urban areas has increased demand for routine services to a higher level. Where demand for everything is increasing, a need for transportation is also mounting. Drivers are earning recurring income already on the continent. Moreover, with the appearance of Uber in various regions, individuals have already started building loyal customer bases by renting their cars for metropolitan commuters.
The increase in population in Africa is generating heaps of waste. Entrepreneurs can derive opportunities from this by converting waste into electricity. Today, most of the waste in Africa is either burned or buried in the ground and more than 80 percent of solid waste material becomes ingredients of water pollution. It is very difficult to overcome this problem but once people are educated in the right way to dispose of waste, this should make the waste to energy conversion industry more efficient and hence more profitable.