Africa is no longer the dark continent it once was. Its economy is growing by leaps and bounds and the technological boom has taken over the entire country. The world's leading technology companies, such as Google, Microsoft and Apple, are investing heavily in different sectors of the African economy.
This has created a growing interest among entrepreneurs in creating a company in Africa. And if you are one of those entrepreneurs, here are 5 profitable business ideas in Africa:
Many deadly bacteria and viruses that have been eliminated from the rest of the world continue to wreak havoc on the African continent. Furthermore, there are many endemic diseases in Africa. There are many reasons that can be attributed to this poor state of health in Africa, but one of them is poor waste management and lack of hygiene.
According to statistics, there is also a large gap between waste collection and recycling, since Africa only recycles 4% of its plastic waste.
So, this presents a great opportunity for aspiring entrepreneurs to step forward and fill this gap.
Food and agriculture
Despite having a lot of land, most African countries still spend tons of money on food imports. And that includes basic foods like rice, wheat, cereals, etc. And it is not that Africa does not have fertile lands. It is above all the lack of resources and education that prevents local food production.
The opportunity here is enormous. Because any entrepreneur who can solve this problem by growing food locally will make a fortune. Because the billions of dollars spent importing food would go to these local food production companies.
The economy of African countries is expanding, as is the purchasing power of the population. This has led to an increase in demand for supermarkets where quality products can be purchased under one roof.
There are some well-established retail markets in relatively developed countries in Africa such as Egypt, Morocco and South Africa. But in the rest of the continent, all retail is scattered and disorganized. Therefore, it is a great opportunity for entrepreneurs to work towards finding a solution to organize this retail business.
Urban migration is increasing in Africa. As the economy is expanding, people migrate to big cities in search of work and a better lifestyle. Although it is a good sign for the African economy, it also creates the housing problem.
There are not enough houses for the emigrant population. Therefore, the business opportunity here is a real estate company that offers affordable housing. Another possibility is to create a construction raw materials company, such as cement and steel.
The world's leading technology companies are investing heavily in Africa's internet and technology sector. The form of investment ranges from the opening of technology centers to the financing of new companies. A recent example is Microsoft, which recently partnered with venture capital investors to fund 10,000 African tech startups.
Just because large companies have taken the first step does not mean that opportunities have disappeared. Africa is a continent with countless 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 that have almost a 50% chance of success.
Today, Africa is a hot 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 most profitable industries to do business in are housing, waste management, technology, retail and agriculture. If you're skilled, these sectors can provide a high return on investment.