Africa’s Booming Markets: The 10 Fastest Growing Industries in 2023

In recent years, numerous industries have showcased a diverse range of booming markets that are capturing the attention of investors and putting Africa at the forefront of global economic expansion.

These advancements can be attributed to a combination of factors, including favourable demographics, technological advancements, increasing urbanization, and a growing middle class.

While this is impressive for the African continent, it is pertinent to introduce you to some of the industries that have emerged as key drivers of this economic surge.

Join us as we explore some of the fastest-growing industries in Africa in 2023, shedding light on the sectors that are not only transforming the continent’s economic trajectory but also contributing to its global relevance. 

Fintech

The fintech industry in Africa is booming, thanks to the continent’s high mobile phone penetration and growing internet access. This is because Fintech startups in Africa are developing innovative solutions to address the financial needs of the unbanked and underbanked population. 

A recent annual ranking of Africa’s fastest-growing companies named 9 fintech companies including Moniepoint, Paga, Scbank, 4G Capital, and Sankore, as some of the companies that recorded a fast growth rate.

Africa’s fintech industry will continue to bloom as the continent continually takes steps to ensure wider financial inclusion.

Renewable energy

This industry has recorded rapid growth in recent times with companies like Altech (Congo), Daystar Power(Mauritius), Easy Solar (Sierra Leone), Karmsolar (Egypt) and Herholdt’d Group (South Africa) recording remarkable growth rates.

Africa’s investment in renewable energy projects has created several opportunities for businesses that can provide renewable energy solutions to African countries.

Healthcare

It is no longer news that Africa grapples with several major health challenges, such as HIV/AIDS, malaria, and tuberculosis. This challenge has however created several opportunities for businesses.

Companies like Globe Medex (Egypt), Africa Healthcare Network (Kenya), and Hearx and Vertice Medtech(South Africa), recorded significant growth rates as stated in the report.

Oil and Gas

According to reports, Africa houses 1/6th of the top oil-producing countries in the world and contributed around 9.6 % to the world’s output in 2019. 

The African oil and gas industry has recorded significant growth as countries like Nigeria and Angola have with their large oil reserves attracted investors. 

Agriculture

Africa’s Agriculture industry has transitioned into a powerful one with renewed capacity for innovation, data analytics, use of artificial intelligence, and machine learning for field tracking. 

This comes as companies like Achill and Silverlands Vineyards (Namibia), Zamseeds (Zambia), and TGI Africa (Nigeria) amongst others have changed the face of agriculture and recorded significant growth rates.

Logistics and transportation

As people continue to settle in popular urban areas, Africa’s logistics and transportation sector will continue to grow. This is because logistics make up more than 70% of a product price in Africa, as compared to less than 6% in the United States.

A closer look at the report revealed that Nigerian companies like Neveah and Kawai Technologies we’re some of the fastest-growing companies in Africa’s logistics and transportation sector. 

Tourism

Africa is home to stunning natural scenery, rich cultural heritage, and friendly people. This is why the tourism industry is one of the fastest-growing industries. 

A report on African countries with international tourism receipts listed Egypt, Morocco, and South Africa as African countries with the highest international tourism receipts.

Education

The African continent is facing a major skills gap, as its population grows and the demand for skilled workers increases. This gap has created opportunities for businesses and made the industry one of the fastest-growing industries with companies like Cira Education in Egypt taking the lead.

Technology

With several startups developing innovative solutions to address the challenges facing the continent, Africa has become a hotbed of technological innovation.

Reports say African tech startups raised $5.2 billion in 2021, three times more than the previous year. This indicates the growing interest and investment in the African start-up ecosystem.

Another indication of the growth of this sector is how Silicon Valley investors, as well as those in Asia and Europe, have become overly interested in the potential of the African start-up scene, particularly in the tech hubs of Lagos, Cape Town, Johannesburg, Nairobi, and Cairo. 

E-commerce

The E-commerce market has also experienced remarkable growth in the last few years, with projections that it will reach a value of $75 billion by 2025. The report also revealed that African companies like Wasoko, Chari, and Copia recorded remarkable growth rates in the year under review.  

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