With immense natural resources, a fast-growing population of young, tech-savvy workers, and middle-class consumers, business opportunities abound across Africa like never before.
Both international corporations and homegrown startups are capitalizing on the potential by building their presence across significantly promising sectors.
Read on for the top 6 African industries displaying strong fundamentals and outsized growth potential;
Agriculture in Africa
With 60% of the world’s arable uncultivated land, Africa represents the next frontier for major advances in agricultural output.
Adoption of new technologies around irrigation, processing, and cold storage infrastructure can drive significantly higher crop yields and value addition.
Growth in production of cocoa, coffee, oil seeds, grains, fruits and vegetables seems highly promising.
Financial Services
Still lacking banking access, over 60% of African adults represent an underserved market eagerly adopting financial services via mobile phones.
With underlying sectors growing at over 6% annually, rapidly expanding retail, business, and investment banking services should flourish.
Fintech innovations around crypto, money transfers, investing, and lending also fill major needs.
Telecommunications
With the youngest population globally, Africa’s incredibly tech-hungry demographic has sparked a massive expansion of mobile and internet connectivity.
Over the next 5 years alone, 300 million additional Africans are expected to become internet users.
Upgrading networks to more broadband 4G and 5G access should unlock $150 billion in economic growth.
E-commerce and Retail
Increased internet access and usage are supercharging e-commerce, with projections of a six-fold industry value increase to $75 billion by 2025.
International retailers are innovating around mobile payment solutions tailor-made for African consumers.
Demand for consumer goods by an emerging middle class also boosts modern brick-and-mortar retail.
Renewable Energy
The falling costs of solar, wind, and other renewables make them highly scalable solutions for Africans lacking reliable access to electricity grids.
Clean energy builds self-reliance in rural areas while also reducing carbon emissions from existing diesel generators in urban centres.
Greentech also enables key sectors like manufacturing and agriculture needing affordable power.
Transportation Infrastructure
Badly needed upgrades to crumbling road networks and inadequate ports present a $100 billion yearly infrastructure investment opportunity in Africa.
Expansion of airline routes and railways modernizing cargo and passenger transport also drive growth. Meeting the mobility demands of economic development and trade relies on transport overhauls.
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