Unveiling Africa’s Untapped Business Potentials

Africa is a continent that has high economic potential. Thanks to its favourable climate for agriculture, abundant natural resources; wildlife and improved macroeconomic policies. It is undoubtedly an ideal spot for investment. More than 80 percent of Africa’s population growth over the next few decades is expected to occur in cities, making it the fastest-urbanising region in the world.  At the same time, incomes are rising across much of the continent, generating new business opportunities for companies and investors.

This article will help you explore some untapped business potentials across various sectors and countries on the continent.

1. Agribusiness

According to a World Bank report, Africa’s agribusiness industry is expected to worth $1 trillion by 2030. With up to 60 percent of the world’s uncultivated arable land, fertile soils, abundant labour, and all-year sunshine, sub-Saharan Africa has an untapped potential to become the world’s biggest exporter of food products.

Sadly, African countries import more than 70 percent of wheat consumed, over 300,000 tons of chicken, and spend more than $10 billion on imported grains, especially rice.

Most countries on the continent are major raw material exporters to Europe, with very little participation in value addition for final products. This presents a business opportunity for investors willing to make some cash in the value chain

Oil giants such as Nigeria and Angola that have hitherto neglected Agriculture are now more open and supportive of agribusiness initiatives.

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1. Consumer Retail

In recent times, across the continent, both local and international supermarket brands like Shoprite, Game, Checkers, Woolworths, Edgars, and Spar are springing up as they scramble for every inch of available space in shopping and retail infrastructure developments.

Africa is now one of the fastest-growing retail markets in the world, buoyed by a large and growing middle class, increasing local spending power, and a boom in the number of foreign workers. The shopping trend on the continent is on steroids.

Countries such as Nigeria, Kenya, and South Africa have seen a massive increase in the number of shopping malls in their cities. Nigeria has seen substantial inflow from foreign and local investors in the development of retail shopping malls.

In April 2016, the Mall of Africa, massive 131,000 square metres of retail space, opened in South Africa.

It is the largest shopping mall in Africa ever to be built in one phase.

Also, Two Rivers mall opened in Nairobi, Kenya. This is also the largest shopping mall of its kind anywhere in East Africa.

3.Startup financing

Investors are sending bigger cheques to African startups due to rising confidence. They can see how previous investments have helped these companies grow and mature to levels that deliver mouth-watering returns on investment. So far, six key industries have been favoured by the investor deal flows, and the balance is skewed toward tech-based startups. They are fintech, agritech, clean energy, eCommerce, education technology, and healthcare…

EDITOR’S NOTE: Continue reading on page 42 of our latest magazine. This article was written by Olufikayo Owoeye. Follow him on LinkedIn here.