Africa has seen a significant improvement in their economy as of late. Despite being dubbed as one of the most underdeveloped nations, Africa presents a lot of resources and opportunities that entrepreneurs can tap into.
Six of ten fast-growing economies in the world are African countries. With that, prominent businessmen and business experts consider the continent as one of the most attractive investment destination in the world. It’s no wonder why a lot of entrepreneurs are looking forward to establishing their business in the continent.
If you’re planning to expand or start your business, Africa is a great place to do it. Here are some of the most profitable businesses you can consider:
Automobile Business
Africans from rural areas are migrating to urban areas for better job opportunities. This led to a population spike in urbanized cities. Because of this, the demand for transportation increased as well.
It’s estimated that the African automobile industry could sell up to 10 million units in the next few years. But only a few companies are producing vehicles in the country. To meet the demand, there should also be an increase in the number of automobile companies.
This makes the automobile business an ideal in Africa. Moreover, the need for auto services such as auto parts or repair services could also increase.
Solar Power
Many areas in Africa enjoy at least 300 days of sun all year long. Thanks to that, solar energy is abundant in African nations. But even with that, several African families are still left without electricity.
The best thing about solar energy is that it’s free and it’s sustainable. . A lot of companies have tapped into this resource to provide electricity to millions of African homes.
If you have a knack for sustainable energy, a solar power business might be a good business idea for you.
Agribusiness
Some parts of Africa are boasting with climates that are perfect for farming. In fact, Africa owns 60% of the world’s arable land. However, most farmers in the country do not have access to capital that allows them to cultivate their land. If they rely on the farmers alone, many African countries will experience food shortages.
For this reason, agribusiness in Africa remains to be profitable. Recently, the concept of ‘crowd-farming’ is gaining much attention from the public. Crowd farming happens when people in one community pool funds to help farmers produce food. In turn, the investors get a supply of those crops during the harvest season.
The African government currently spends at least $30 billion on food imports. However, if people continue to support local agribusinesses, the country can produce enough food for its people. This lessens the need for the government to spend much on imported food.
Affordable Housing
With more migrants are flocking into the urban sector, there is a pressing demand for affordable housing options. While the government is doing all they can to provide affordable housing, there’s still a need to build more houses to cater to all migrants. This need opens a door of great opportunities for business owners. You can start a real estate or housing company to supply this demand.
Waste Recycling
Africa produces large amounts of waste every day. Most of these end up burned or washed away into the landfills and water bodies. This creates another problem for the African population.
Hygiene and cleanliness are among the challenges Africa has been facing for years. If these challenges remain unaddressed, the problem will only get worse. Fortunately, entrepreneurs in South Africa and Ethiopia found a way to turn waste into a useful resource.
Agriprotein is a South African invention that turns collected waste into animal feeds. In Ethiopia, they collect the waste from their cities and convert it into energy. This allowed companies to provide electricity to millions of homes across the country.
Forty percent of the population growth in the world is expected to take place in Africa by the year 2050. With that, the waste is also set to increase. By starting waste recycling company now, you’ll have the chance of reducing the wastes before it piles up. Waste recycling provides an opportunity for businesses to help the African environment and people.
Africa is Looming with Business Opportunities
From hunger to waste mismanagement, Africa faces endless challenges that endanger their economy. But despite that, many believe that entrepreneurship and partnership with different investors is what will drive the Africa towards sustainable development.
In the following years, African millionaires won’t be tagged based on the amount of money they have. Rather, they will be identified based on the impact they made in society. African businesses are profitable because their products are what the people need.
Electricity, food, and shelter are a necessity. However, some people aren’t fortunate enough to access these basic needs. African business owners respond to the crisis not only to make money, but also to help humanity. If you’re one of the people looking to establish your business in African soil, then those ideas are a few of the best. So, get your capital and business plan ready. These business ideas won’t only help you jumpstart your entrepreneurial career, but it will also help you make an impact in the lives of the people in the continent.
Written by: Rumzz Bajwa, writer and content marketer at SMB Compass