There are various lucrative business opportunities in Africa that one could invest in.
The new generation of entrepreneurs are looking for or implementing ways to move from the normal traditional method Africa’s new entrepreneurs are searching for new business opportunities in Africa, they are not interested in the continent’s limited resources, such as timber, gold, copper, oil, and diamonds.
They’re far more interested in far more valuable resources in the technology age.
Different issues that are still found in Africa are the unavailability of insufficient power supply, unemployment, hunger, illiteracy, etc and the younger adults are looking for business opportunities that will help them solve all these problems in Africa.
Focusing on solving these problems will generate passive income for entrepreneurs, job opportunities for seekers, and economic development for Africa.
Entrepreneurs take these difficult issues in Africa as lucrative opportunities and bank on it.
We will vividly explain 25 possible business opportunities in Africa you could invest your resources and time in.
Africa is a place where the population growth is high, it is estimated that in 40 years’ time Africa’s population might reach 2.4 billion.
Housing is very essential to mankind and no matter your level or status in life you must live in a house, be it rented or owned. With this growing population in Africa, Real Estate is a very lucrative business.
Upon the increase in demand for real estate in Africa, there is still a housing shortage across the continent.
Middle-class Africans are searching for ways to invest their resources in Real Estate, be it commercial or residential. The population in Africa makes this business a lucrative one.
Some West African countries like Nigeria have a severe housing shortage despite being a very active player in Africa. More than 15 million homes have to be built to curb this housing issue.
The return on investment is worth it when you build or buy a landed property and rent it out for short lets or yearly rent, the property will give start making money for you.
The returns on investing in Real Estate are very consistent and high compared to other industries. The price of rent is always increasing yearly which means the Landlord will make more from investing in this business opportunity.
No matter the size or the type of property being acquired for investment, the good thing is that even though it’s a low-class property, it is still worth investing in it because the industry is lucrative. I advise young Entrepreneurs to take a closer look at this business opportunity.
E-COMMERCE AND LOGISTICS/DELIVERY
E-commerce and Logistics business is a very popular business in this technology age.
There is hardly anyone doing buying and selling a business or just any individual who doesn’t stop, even though it is physical shopping you might still need a Logistics/Delivery company to deliver it at your doorsteps.
Obviously, this is a very lucrative business especially when the global lockdown was implemented due to Corona Virus.
E-commerce and Logistics/Delivery were part of the essential businesses that still had to operate despite the global pandemic.
During this period people bought/ordered things in large quantities online especially in countries with stable economies.
Africa’s involvement and rapid advancement in internet usage have spurred the success of the E-commerce and Logistics/Delivery business in Africa.
The future of e-commerce is extremely promising. But, learning how to start an e-commerce business is wavy.
Starting an E-commerce business involves a lot and you have to know the necessary things needed to set up and commence this business but when it’s done the right way, you will reap the benefits.
Entrepreneurs are advised to grab this opportunity and invest wisely in this business
Agriculture is one of the most lucrative businesses in Africa. With African soil being very fertile for planting all sorts of farm produce and food, African Entrepreneurs can start investing in this.
We have so many areas in Agriculture which we could invest our money in like manufacturing packaged/processed food, selling food items, livestock, planting and selling of crops, etc.
There is a large business opportunity for Maize/Flour milling in Northern Nigeria and other African countries like Zambia, Malawi, etc.
Agriculture is Africa’s dominant sector, and even during Covid-19, it was the only sector that did not decline; people continued to eat, and probably ate even more.
Agriculture is an inevitable sector because people must consume food, be it in solid or liquid form. The market is always available.
Some food items are still imported in Africa because there is a lack of efficient agricultural equipment needed for easy planting and harvesting.
Most African countries still rely on foreign countries for the importation of some food items and beverages which could easily be produced in Africa if the required machines or equipment are put in place.
FURNITURE AND HOME ACCESSORIES/DECORATION
People are acquiring new homes, office space and refurbishing their apartments during this early stage of the year so the furniture home decoration companies will be highly sorted after.
A lot of household accessories and furniture are being replaced or newly bought to give the house a new and fresh look e.g sofa, dining chairs, wine cabinet, kitchen cabinet, wardrobes for clothes, etc.
Africa is a global market for furniture importation. Africa’s total import between 2018 and 2019 was estimated to be $5 billion with Nigeria, Ghana, Kenya, Egypt, Algeria, etc being among the top importers in the continent.
Upon the lack of basic amenities and infrastructure in some urban areas in Africa, there is still a large market for furniture purchases.
Different industries have influenced the demand for furniture positively in these urban areas as they can’t do without furniture especially tourism and hospitality.
As far as people are moving into their newly acquired homes, building new schools, banking premises, hospitals, hotels, shopping centers, and recreational centers, furniture must be needed.
A brand new bed, kitchen cabinet, dining chairs, sofa, etc will be required to set up a new home. Multiple shelves will be needed in shopping centers to display the available products for sale.
The population growth in urban areas in Africa has been of tremendous help to making the furniture business a successful one in Africa.
The fact is that the anticipated increase in demand for home and office furniture in Africa is propelling the growth of the African furniture industry. It’s an excellent time to invest in this thriving industry.
Now is the right time to invest in furniture in Africa because people are buying houses or moving into their new homes also getting new office spaces.
RETAIL OF BEAUTY PRODUCTS
There is a large growth in the fashion industry in Africa. The young people in Africa are responsible for the trendy fashion in Africa.
They display foreign and locally made fabrics and clothing thereby patronizing the designers.
The sales of these wears have become very popular and are really moving the market.
Prices of cosmetic products are becoming available at a low price so even low-class consumers could purchase it. This makes beauty products a lucrative market in Africa.
The long-lasting formula of cosmetics has made the beauty market high in demand and the beauty products sell very fast. These products could be kept for a while without getting bad.
Cosmetics is now an essential need for female folks, especially younger ladies. Ladieswear makes up every kind of outing, be it casual or corporate, as far as they are stepping out of their comfort zone it must be on.
Even low-class individuals are capable of purchasing at a lower price.
Cosmetics helps a whole lot in hygiene, most people use this to boost their self-esteem.
Beauty products are one of the most popular items in Africa.
African investors prefer to be sole distributors for foreign companies when considering a business in the Cosmetics industry or they could start up their own cosmetics line.
FASHION AND CLOTHING
Africa doesn’t have enough clothing and branded companies and there is a high level of demand for clothes in the continent which makes the market opens for business opportunities.
Consumers in Africa go for European brands of clothes because they are of high quality but very expensive, unlike the Chinese ones which are very cheap but low in quality.
Africans are conscious when it comes to their wear.
The African fashion market is expanding at a rapid pace.
African entrepreneurs should consider the quality of textiles and fabrics before investing in this industry because a fashion trend is not static, it can change anytime and very fast so they should be highly monitored while running the business.
This market is very crucial because different countries might have different demands.
Presently in the world, there have been threats of climate change so the world is ready to embrace any natural means that reduces waste and pollution of the environment is seen as a big business opportunity in Africa.
As far as it is a source of green energy and it’s eco-friendly, the market is sure.
Green energy start-ups are getting support from governments, agencies, individuals, foreign investors, and other people concerned about the reduction of environmental pollution and the prevention of global warming.
Renewable energy is Africa’s most promising industry for potential international investors.
People in Africa tend to learn more skills involved in implementing various form of renewable energy because of the decrease in cost.
The price of electricity usage in solar photovoltaics went down by 82% between 2010 and 2019.
These favorable economic trends have resulted in a promising outlook for renewable energy generation, which is expected to expand significantly across Africa even after the pandemic’s impact.
Renewables are expected to account for nearly half of the increase in power generation in Sub-Saharan Africa by 2040.
The present economic situation in Africa has helped to buffer the growth of renewable energy even after the global lockdown period caused by the pandemic.
In 2040 it is estimated that renewable energy will be responsible for more than half of the increase in power generation.
Production of Biogas in Africa is another big opportunity for investors.
BUILDING AND CONSTRUCTION SUPPLIES
Africa is experiencing a construction boom, which will undoubtedly generate a lot of wealth for African entrepreneurs.
The construction/Building industry is a very profitable sector, there is a lot of wealth to generate from there.
It is a very common and very important source of buliding/construction. It can be used to build houses, roads etc. Africa was a huge importer of cement until Dangote, Lafarge, BUA and others came into the scene.
Cement is a lucrative business opportunity though we have steel, timber, paints, glass, roofing materials etc and they are highly demanded for in Africa.
There is high deman for building materials in Africa. Steel business is possibly bigger than the cement business.
The banking, payment systems, and overall financial services industry in Africa, like in other developing regions of the world, is one of the least developed in the world.
There are different business opportunities in the Financial market which entrepreneurs can invest in.
Though there is an introduction of the cashless trend, 50% of Africans still conduct transactions in cash.
If there is enough sensitization and educational packages in the rural araes to educate them on the benefit of the cashless lifestyle.
With or without the cashless transactions, financial services is a lucrative business opportunity though very risky too.
We have a lot of African owned online payment system that makes life easy, so you can stay from the comfort of your home and shop, send/receive money to anywhere in the world.
Also the introduction of POS services has been on the rise. This mini banking services aids financial services and it’s a good business opportunity also easy to start.
Most financial services like the online payment solution Applications have attracted investors all over the world.
Financial Service is a vast sector for entrepreneurs to invest their money.
Solar energy is a good natural resource in Africa because of the availability of sunlight in most parts of the continent.
Africa still has problems in providing steady power supply thereby boosting the sales of Generators which might be dangerous to the health with time.
More than 500 million Africans lack good power supply.
Solar energy is completely free, completely clean, and abundant.
It is also the best option for people living in remote areas of Africa who are not served by electricity grids.
Solar energy is the best alternative for power supply especially in the rural areas because it’s free and abundant.
Smart African entrepreneurs who rise to the challenge of lighting up Africa with solar energy are likely to become millionaires.
Young entrepreneurs in Africa are advised to invest in this multi-million business.
Africa is the second highest market for mobile phones in the world, a step below the ‘Giant’ Asia.
The continent’s population of technology savvy young people have helped in the growth of smartphone usage in Africa.
Consumers in Africa are seriously in need of an upgrade of first generational phone to smartphones.
The benefits of smartphones in easy communication, easy learning, easy transaction etc has captured the heart of many especially the youths in Africa.
Young Africans follow these mobile phone companies to know their new products, new updates etc.
Using smartphones in Africa especially iPhone, Samsung etc have become a thing of fashion for the young folks.
It is a big business opportunity in Africa for people who are interested in franchising or starting it off as a new phone retail company.
A lot of cheap Andriod phone have entered the African market in the last 2 – 3 years and users have really patronized the product more compared to few years ago.
This means there’s a huge market in the mobile phone business in Africa.
DIGITAL AND ONLINE SERVICES
Africa is undergoing a digital revolution. Many services now have an app or are available online. Africa’s digital economy is rapidly expanding.
There is a big change in Africa within the last decade in the aspect of digitalization. 95% of businesses now have a space online, both large and small size business.
Almost every company now has a website and an easy accessible App to aid their customers use their services more.
Every sector now have a website and/or an App for feedbacks, registrations and self usage of their products and services.
A lot of Apps and online service providers will definitely kickstart tin 2022 to give valur to the people and solve immediate problems.
This is a market for youths to catch without a second thought and invest their time and resources in them. Partnership can be a good consideration here.
Taxi business is a big shot in big cities in Africa.
Nowadays we have Taxi platforms who have Apps in which drivers register their cars and do business with the aid of these platforms and daily or monthly profit is shared between the company and the driver.
Technology has really helped in upgrading the system, today we have features that makes the passenger to order for a ride by setting his/her pick up and arrival destination.
We also have private Taxi services where drivers stand at strategic places like airport, recreational centres, big shopping malls etc to look for passengers.
But most people in big cities in Africa using the Taxi platforms more like Uber, Bolt, In-Driver etc.
Investing in this business opportunity might takes a lot but it’s actually profitable in big cities.
Waste disposal and manegement has always been a problem in Africa for decades and entrepreneurs have found ways to curb the issue.
A lot of Waste management start up in Africa have taken advantage of this opportunity and are already making a lot from this as they are giving a solution to the long overdue problem.
Wecyclers, a Nigerian based waste management start up company have solved waste management solutions in Nigeria. The waste collection company started out in 2012 and have been able to provide solution.
It’s advisable to invest in this growing waste management sector because in the next few years it will be highly sort after.
Since the outbreak of the Corona Virus pandemic, it has been very neccessary to adjust the Educational sector from just physical classes to virtual/online classes so as to prevent the spread of the virus.
So many Apps and online platforms has been launched to solve this problem and this initiative is more profitable that the physical school.
Some African schools have adopted the online education service to get more students and expand their reach.
Apart from this, study abroad services are now more than before because of the educational challenge in Africa.
Most parents who are financially capable prefer sending their wards overseas for Higher Education so that he/she will be highly employable when they are done with their studies.
This has made this market profitable and seen as a business opportunity for entrepreneurs to invest in.
There is so many opportunities available in this sector and it’s worth investing.
TOURISM AND TRAVEL-TECH
Africa has a lot of tourist destinations that are yet to be known. African entrepreneurs should consider investing in this business opportunity.
You will notice that in Africa during the holiday season most people are looking for where to travel to with their loved ones and family but some times lack information on where to travel to.
A Travel/Tourist start up company can provide that can of service so Africans should consider starting a business in this.
TripAfrica which was founded in 2016 is doing this, they gave viable information about travel destination in Africa.
They also provide services such as hotel reservation and tour packages.
This business opportunity is highly profitable and good to invest your time and resources.
In the world today people tend to use a lot of design for different things, ranging from business promo, school, church etc.
Being a designer now is a good choice but you have to create your community, create your portfolio and have an online space.
People demand for design on daily basis, that means designers are highly sort after.
Designers can work for companies or as freelancers and their prices vary.
There are already freelancers platforms which a designer could register to start getting jobs and making money.
This is a good business opportunity because it’s easy to start.
Just learn the skill, work on yourself daily and get a laptop for effective work.
DATA STORAGE AND CYBER-SECURITY
There is barely any big or small company in world that doesn’t have or is planning to employ a cyber security professional especially financial institutions.
They are highly sort after, that is why it is necessary to learn the skill.
It’s becoming a business opportunity in Africa because of the data breaches during the past year and the stakes lost.
This is a good business opportunity because incidents of cyber security in Africa are not reported.
So the cases are more than what have been heard.
Outsourcing is a big business opportunity in the world and Africa is fast in adopting it.
Companies nowadays look for good agencies that will help them in HR, IT and Finance just to cut cost, this will give them time to do focus on thier main business.
Currently there is a lot of competition in Outsourcing, to venture into the business, you have to be good and experienced in it so that you could outsource the best hands for your clients.
This is a profitable business opportunity for Africans as more companies are planning to outsource for more staffs.
PROFESSIONAL CLEANING AND SECURITY SERVICES
Cleaning and security services are frequently outsourced in European and American countries.
This trend is spreading throughout Africa, particularly in Cape Town, Johannesburg, Nairobi, and Dakar.
Many businesses prefer to outsource their janitorial and security operations to professional firms.
African entrepreneurs should think about starting a professional cleaning and security outsourcing business.
This business opportunity is highly patronized in the Africa today compared to a decade ago when it was just in Europea and America.
Banks, shopping malls, schools and other commercial places now require the service of a professional cleaning and security companies.
To start this business, you have to study more about it and have the necessary funding or an investor.
WATER PURIFICATION SYSTEM
Many rural communities in Africa lack good access to safe and clean water, this has really affected their health and the general body growth.
Water purification technology and equipments are used to achieve the goal of providing treated water to this people in the rural areas.
Collaborating with NGOs to provide this water purification process is a way of making profit in 2022.
Government and International organization funds such project.
Generating revenue from this is by maintenance ansd sales.
The purification of water is now normal when we talk about businesses in Africa.
You can make money also from being a distributor or setting up a service center.
This is a good business that an entrepreneur can consider investing in.
FUNDING FOR NEW START UP
Investment in Africa is high by approximately 300% in 2021. It is surprising since African economies hasn’t grown by 4% during this period.
The total amount invested in African companies had really increased in 2021. Single transactions increased also.
There are some many funding opportunity in Africa for good business ideas or businesses that has already launched out as a start up.
Some invest in your idea or business while others issue loans to entrepreneurs provided your business idea/proposal has been approved.
Creation of Professional Training Schools is a good opportunity in Africa because of the high demand for skilled workers in the market.
Graduates have to go through some courses that will make them employable in corporate organizations. That is when this business comes to play.
Starting a training centre for professional courses is a good investment in the world today.
Majority of corporate organizations set out training programmes for their employees to educate and them on different areas like Health Safety and Environment training, Monitoring and Evaluation, Customer Service, Digital Marketing etc.
Also, job seekers who have passed the interview process and are waiting to be employed go through trainings to gain more knowledge in their field.
This business can really thrive in major cities with big companies.
The demand for transportation in Africa has really made the automobile industry to be active.
People now migrate to the cities to search for jobs and other opportunities, this has triggered the population growth in the urban area.
Very few automobile companies manufacture vehicles in Africa. More investment should be made towards reviving this.
Selling of spare parts is also a good business in the automobile industry.
The automobile industry is a big business opportunity in Africa. There is only a few African entrepreneurs investing in this market.
So, it’s advisable to start looking at this industry early.
ONLINE AND IN-PERSON TUTORING:
Most parents plan extra lesson for their children after school or during the holiday jsut to retain their memmory on what they were thought in school, also learn new things.
Advertising yourself is a good way of finding clients to patronize you.
If you are a teacher, you can meet the parents of your pupils maybe after school and discuss the services you render.
Even in your neighbourhood you can also meet parents tell them about your services.
This business can In-Person or online.
Nowadays people of all age grades especially the youth subsribe to language studies.
The demand for foreign languages by Africans is increasing. Most people is because of jobs or school.
Investing your time and resources here is worthwhile.