Africa is becoming an increasingly attractive hub for foreign investors in light of various economic, political and social reforms that are sweeping through the continent, resulting in a much improved business environment conducive for foreign direct investment. Africa has in the recent times, shown herself a growing economy.
Gone are the days when Africa is seen as an unrefined part of the world, still in the dark. Now, Africa is lightened with so many prospects and opportunities; businesses are thriving and investors in Africa are not on the loss.
In light of this, one may want to ask,”Why should I Invest In Africa?”
The answer is, there are key attractive figures which is not seen or hardly seen elsewhere.
- 40% of the global population growth will be in Africa by 2050
- More than 50% of Africa’s population is under 20 years old, making it the world’s youngest continent – in comparison only 28 % of the population of China is under 20 years old
- 500 million Africans are between the age of 18 and 24. By 2040, the forecast is 1.1 billion — more than in China or India
Africa is a growing economy and therefore, has the potential to grow any business idea sown into it. The big question now is, what ideas do you have to sow into this fertile soil?
Some of the most insightful ideas I found with high potentials as regards to investing in Africa are;
Investment In Housing
Africa has the need of quality and affordable housing. Investing into real estates in Africa is a venture which will definitely yield high returns. Quality and affordable shelter both for a living and for business is the heart desire of many Africans.
Africa for sure is an agro-enterprising continent of the world; but it is pertinent to note that the food production state and it’s processing are still mostly in the manual form and thereby getting them in large quantities as in the case when machines are employed in the food processing is hindered. Establishing food processing and packaging companies is a venture that will yield high returns for any ready investor who is interested to invest into that venture.
Educational Centers & Libraries
Africa is growing when it comes to education. Venturing into establishing coaching classes, conventional libraries and e-libraries is a step in the right direction in imparting lives and also making money alongside.
Image credit: techmoran.com
eCommerce giants like Konga and Jumia have grown quite impressively in the last few years. Africa is now one of the fastest growing retail markets in the world. Retailing, both online and offline is a good business idea in idea; this is highly powered by the large population of Africa.
Payment solutions is a key area to invest into in Africa as most of the financial transactions in Africa are still been carried out with cash offline. Compared to the rest of the world, payment systems in Africa are largely ‘old school’. Most transactions are still done in cash, which can be very inconvenient.
In conclusion, I want you to know that every sector of the economy in Africa has huge untapped potentials; from technology, agriculture, power generation, food, several services, real estate, etc. They all have the potential to yield good return on investment.