Today, you will be acquainted with the 10 Most Profitable Businesses to Invest in Africa. It is not enough to invest but importantly in a business that is guaranteed to bring a return of profits. interestingly, there are tons of businesses established and operated in Africa. However, investors are searching for profitable businesses in Africa they can invest in. That is why it is imperative that you read through this informative piece to the end.
10 Most Profitable Business to Invest in Africa
I know you are eager to find out the businesses that have been listed here. And without further ado, below is the pin-point of the 10 Most Profitable Businesses to Invest in Africa.
- Agric Business
- Real Estate
- Oil and Gas
- Healthcare Services
- Exportation of Local Products
- Urban Logistics
- Affordable Private Education
Africa is a home of agricultural practice and despite it is an age-long practice, Africa is yet to exploit this business to its full scale. The continent is blessed with rich and fertile lands that can yield profits. In fact, the United Nations describes Africa’s agribusiness to be worth $1 trillion by 2030.
Sadly, despite the prospect of Africa agribusiness, the continent still spends over $30 billion on food imports annually. For this reason, we put it first on our list as a business that you can invest in and expect profit.
2. Real Estate
The real estate industry worth trillion dollars worldwide and Africa is yet to fully exploit this business. It is no story that Africa is experiencing a high rate of rural-to-urban migration. And it is envisaged that by 2030, up to 50% of the continent’s population could be living in towns and cities. This makes it a perfect business for investors to put in their money.
So, you can exploit the housing business in Africa because of its high demand.
3. Oil and Gas
Oil and gas are the third out of the 10 Most Profitable Businesses to Invest on in Africa. This business is a lucrative business in most African countries with many people investing heavily in it. In some African countries, Oil and Gas industry is the major contributor to the country’s GDP with a lot of local and foreign investors taking the benefit of the business.
You can invest in Oil and Gas by renting the equipment used for mining, the exportation of oil products, refining crude oil, among others.
4. Healthcare Services
The need for healthcare service is continuous and the venture is lucrative. Unfortunately, most public healthcare in Africa are poorly funded; also, there is a significant brain drain of African doctors abroad, and many other factors all of which have contributed to the many reasons why the healthcare industry in Africa is a setback.
As a result of these reasons, much private healthcare facilitates have sprung up capitalizing on the inefficiency of public health facilities and in turn make voluminous profit annually.
Also, healthcare equipment, pharmaceutical products, and healthcare services are patronized on daily basis. Entrepreneurs are investing in healthcare services and building state-of-the-art healthcare facilities with some even superseding that of the public health facilities thereby creating alternatives to solving Africa’s significant healthcare problems.
The financial services industry worth trillions of dollars worldwide but, the African finance industry is still facing some challenges that make it an area to explore and invest in to make profits.
It may interest you to know that roughly about 34% of adults in Sub-Sahara have a bank account or access to formal financial services. There are a few Fintech companies established in Africa which makes it a green industry and an opportunity through which investors can make a profit.
Among the several opportunities, investors can capitalize on in Africa’s financial services space including bill payments, bulk disbursement, international remittances, merchant payments, mobile airtime top-up, mobile banking, face-to-face transfers, peer-to-peer lending, micro insurance, and several other interesting opportunities.
Africa is blessed with tons of mineral resources and it is a lucrative business to invest in with a return on profits. Almost every country is a major exporter of one or more mineral resources mined from the country. The mining industry has over the years attracted several investors even outside the shores of the continent which further makes the industry lucrative.
7. Exportation of Local Products
There are a lot of local products that are in high demand across other continents which Africa produce and export in large quantity. Unfortunately, these products are often undermined and overlooked.
However, you can stand out from the overlookers and invest in the exportation of local products to countries abroad and make profits in return.
8. Urban Logistics
Urban Logistics is another profitable business that is among the 10 Most Profitable Business to Invest on in Africa. The need for logistics is on the rise in Africa and so far, the providers are few to serve the innumerable population in the continent. You can take the advantage of transporting goods and products from the manufacturer or retail shop to the consumers’ resident, among other unique services rendered.
E-commerce has come to stay and there a lot of them are still springing up daily. You can invest in e-commerce selling unique goods and products that are highly demanded by consumers. There are three different types of e-commerce business you can invest in, they are business-to-business, business-to-consumer, and consumer-to-consumer.
10. Affordable Private Education
Affordable private education surely is a business to invest in. it is evident that the African public education system is lacking in every factor. That is why several private educational facilities from basic, to secondary, to tertiary level have sprung up providing advanced and standard education and making a profit in return.
You have seen the 10 Most Profitable Businesses to Invest in Africa. These are areas where the African continent is facing a lot of challenges; investors can capitalize on these challenges and are making a lot of profit in return.