Africa has lots of business opportunities as it is a fast developing continent. These opportunities range from small to big business ideas that can solve and revolutionalise some of the problems affecting Africa as a continent. This, coupled with its abundant resources, makes it one of the best locations to start a business.
According to the International Monetary Fund (IMF) World Economic Outlook, out of the ten fastest-growing economies in the world, Africa is home to six. This is projected to increase the continent’s economy to $29 trillion by 2050.
This economic growth is to be attained through establishing different businesses in African countries. Apart from the businesses contributing to the continent, it also serves as a means to generate capital for yourself. Consider these businesses if you are on the entrepreneurial path.
Solar power is one of the small business ideas feasible in Africa
Africa has a hot and warm climate. Since the sun’s energy is free, clean, and in abundance, it serves as a viable business opportunity. Apart from being a reliable source of wealth, it also serves as a means of resolving the power outages on the continent.
In 2020, about 581 million people in sub-Saharan Africa had electricity outages, compared to 597 million in 2021. If you have knowledge and a passion for energy, the undersaturated nature of the power sector makes it a reliable business you can start.
The need for food makes agribusiness one of the best business ideas to start in Africa
Agriculture is one of the world’s most essential and age-long occupation. With the importance of food and the vast arable lands and climates on the continent, agribusiness is a viable business to start.
Apart from local consumption, Nigeria, for instance, exports agricultural products such as cocoa beans, cashew nuts in shell, frozen shrimps, cassava, ginger, fish, crustaceans, maize, mollusks, aquatic invertebrates, oilseed, grain, seeds, and fruits. This yields millions of returns.
Since the sector is vast, you can decide on the agriculture areas such as poultry farming, animal farming, and fishing that you would prefer to focus on. With the importance of food and the prospect of the industry, you can generate money locally and internationally from the business.
Waste recycling is one of the small business ideas gaining root in Africa
The effect of waste led to the ban on the production and use of plastic bags in some African countries. However, some countries still use it, which leads to mass waste production on the continent. This, in turn, results in blocked drainage and pollution.
Since this serves as a problem that needs a solution, recycling waste is a viable business idea on the continent. Some of the countries making good use of their waste are South Africa, where wastes are converted into animal feeds and Ethiopia, where wastes are converted into energy which serves as a source of electricity.
The advent of COVID-19 makes E-commerce business one of the small business ideas in Africa
Online business is one of the booming and lucrative businesses on the continent. It is also capital friendly as it does not require you to get a physical space.
This was evident during the COVID-19 pandemic, as the sector experienced a surge in patronage. From a Statista report, in 2020 and 2021, Nigeria recorded 81% online retail patronage, Kenya and Ghana 79%, and South Africa 68%.
The prospect for the sector makes it a viable business for you to start. You can leverage the available online marketplaces in Africa to sell and build your own e-commerce business.
Logistics is one of the small business ideas evolving in Africa
Some African countries lack proper logistics services. This makes it viable for any entrepreneur with innovative logistics business ideas to start something on the continent. Since ease of goods and services movement is vital in the business space, it serves as a good way of generating wealth.
According to Research and Markets, from 2022 to 2027, Nigeria’s Logistics and Freight Market is projected to increase at a compound annual growth rate (CAGR) of over 3%. Some countries pioneering this sector are Rwanda, Mauritius, Ethiopia, Botswana, South Africa, Kenya, Congo and Ghana.