Despite the many challenges facing businesses in Africa, it has been listed among the world’s emerging economies. Africa is wealthy in terms of both human and mineral resources which forms a strong base for businesses. Regardless of the increased level of poverty and poor leadership many businesses are currently thriving perfectly on the continent. And these businesses are expected to increase yields in the coming years.
Foreign investors are also looking at the continent’s business opportunities and investing their money in the tons of untapped opportunities in Africa. With Africa being among the world’s emerging economies, it’s best to leverage this opportunity to grow your business.
So, if you are still wondering what lucrative venture to dabble into, you are in the right place. Here is a one-stop guide on all there is to know about the fastest growing businesses in Africa as well as tips on how to leverage them.
Top Seven Fastest Growing Businesses in Africa
In Africa, booming and profitable industries are the main gates of the economies of African nations. Foreign investors understand this logic which is why a good number of them are taking advantage of the opportunity. Below are the top seven fastest growing businesses in Africa based on revenue generation and growth.
- Financial Technology (fintech)
- Information Technology (IT)
- Real estate
- Agriculture and Food Business
Fintech, or financial technology, is the newest rave sweeping the African continent. Fintech has improved the efficiency and productivity of traditional banking and this is accomplished through applications that allow for speedier mobile money transfers, resulting in increased convenience and efficiency.
In comparison to other sectors in Africa, Fintech has gotten more investment and has risen rapidly over time. However, over 300 million adults throughout the continent still lack access to banking services, prompting international businesses such as Visa and Network International Holdings to invest in the sector.
In 2021, the total capital invested in Fintech increased by 1.49 billion dollars over the previous year, and this trend is expected to continue in the next years. Fintech is undeniably one of the fastest growing businesses in Africa. A few Fintech companies in Africa are Paystack, Flutterwave, and Tala.
Tips on Starting a Fintech company
- Choose a niche, such as cryptocurrency or money transfer
- Research the rules that govern the industry and heed them
- Analyze your competition and develop a strategy
- Build a staff that is dependable and trustworthy
- Consider your company’s funding
- Begin to create
2. Information Technology (IT)
The Information and Technology sector is another sector to look into. Although this is number five on our list, it is definitely among the top fastest growing businesses in Africa.
IT is an embodiment of technology that facilitates communication. Technology is permeating almost every industry and African countries are leveraging it.
With options like digital marketing, web designing, software development, technical writing and many more, this sector offers many untapped business opportunities in Africa.
The Five Best IT Business Ideas
- Web analytical services
- Chabot creator
- Computer Training Services
- Tech Consultant
- AI and machine learning platforms
Africa’s online shoppers are on the rise, with estimates of 520 million by 2025. According to Statista, the e-commerce sector alone produced 21.35 billion dollars in revenue in 2020. This figure is predicted to rise in the next years, reaching roughly 46.1 billion dollars by 2025. This is undoubtedly one of the fastest growing businesses in Africa, providing tremendous opportunities for investors.
How to tap into the E-commerce sector
- To reach your target audience, create a well-optimized website. For your local SEO, you can contact iVoiceAfrica
- Invest in product information management to get your products online
- Choose the proper platform for your business, or build an e-commerce platform with a team of web and software engineers if you have the resources.
4. Real Estate
The demand for commercial and residential facilities has always been high and will continue to be so in the future. Because of Africa’s growing population, there will always be a high need for leisure centres, hotels, shopping malls, office spaces, and even residential homes, making real estate, not just one of the fastest growing businesses in Africa, but also a highly lucrative prospect.
How to access the real estate market
- Investigate the real estate market in the country you prefer
- Make a business strategy that contains your capital, projected income, risks, and benefits
- Register your company with the proper government agencies in the country
- You can choose to run your business online, offline, or both
- Promote your company. You can contact iVoiceAfrica for assistance with this.
5. Agriculture and Food
The agriculture and food business is one of the fastest growing businesses in Africa. As humans cannot live without food, this sector contributes immensely to the growth of the economy. Although it requires some investment, it is very profitable.
Based on the statistics given by Business Standard, Africa’s food industry recorded a growth of 3.6% in 2020-21 and 3.9% in 2021-22. Moreover, people with busy schedules prefer buying a meal from restaurants and eateries to save time.
Although many traditional sectors continue to thrive, technology appears to be one of Africa’s fastest expanding industries, prompting people to invest in their tech education.
Because technology is not a widely taught subject in schools, many students have turned to e-learning platforms like Udemy, Coursera, and Hubspot to supplement their education.
This was especially evident during the Covid 19 pandemic. Due to this, E-learning has easily become one of the fastest growing businesses in Africa.
How to get into the E-learning business
- Identify your target audience
- Pick a niche. This will be your main focus
- Make courses and lessons. For added convenience, integrate video subtitles and translation
- Select an e-learning platform or, if possible, design one with a team of web and software professionals
- Set a price for your courses
See tips on how to create an effective e-learning voice-over
Logistics is one of the largest and fastest growing businesses in Africa. It deals with the mobility and movement of goods or persons from one place to another. With the advancement of technology, logistics are in high demand. According to the reports given by Market Watch, Africa’s logistics market rose from millions to multi-million dollars from 2017 to 2022.
Owing to the development of e-commerce sites like Jumia, Konga, eBay and the likes, logistic businesses thrive smoothly in Africa. With the increase of delivery companies working in tandem with both online and traditional merchants, this industry is thriving in many African countries.
In a report given by Statista, countries like Nigeria, Kenya, Ghana, and South Africa, have a rough estimate of 387 million online shoppers on a daily basis. This builds a formidable hub for the logistics business. One of the benefits of this industry is that you can buy anything from any part of the world and get it delivered to your doorstep at your convenience. Entrepreneurs can also sell products and reach a good number of potential customers all around the world. Foreign investors can invest in the logistics business in other to reap large profits.
Tips on How to Start a Business in Africa
Most African countries have many untapped business opportunities. So as an investor with the dream of investing in the African economy, here are some easy steps to follow to leverage the fastest growing businesses in Africa.
- Carry general research on the multiple business prospects out there concerning the products or services you render. Gather all the sources and information you get.
- In line with your passion, identify your niche. This will give you the strength needed to keep you in business.
- Sort out the needed capital for the business idea. It is quite easy now with loans from credible financial institutions.
- Contact a CAC expert, to register the business.
- After the registration phase, you can officially launch the business either online or offline. Although, some businesses use both online and offline workspaces.
- Create a business plan. This plan should entail the vision, goal, mission and objectives of the said business.
- If you deal with physical products, find vendors and suppliers interested in what you sell. But if it is services, identify your target audience and tell them about the services your offer.
- Use digital marketing such as Local SEO and Social Media to promote your business and connect with potential customers.
- Keep offering premium value to stay and remain relevant.
With a plethora of untapped business opportunities in Africa, more investors should consider investing in the continent to stand a chance of enjoying the abundant benefits of the economy.