10 Businesses that Never Fail in Africa
The numerous human and material resources in Africa create a number of businesses that will never fail if properly explored. These businesses have enriched African entrepreneurs who have taken advantage of these industries.
So if you are looking to begin or invest in a business that will not fail, then here is a list that will help you make a better-informed decision. Let’s get started.
Across the continent, the teeming population of young people are constantly looking for a way to up their games and improve their CV. They are applying for courses, and securing certifications that will give them better placement in the competitive world they live in. Also, there is a desire to learn, work and train at the same time, and online education is the best option. These and more are reasons why virtual education can not fail in Africa. UNICAF and the African Virtual University are providing flexible learning platforms and affordable access to education to Africans. So if you are looking for a business that will never fail in Africa, Online education is the way to go. Start out by identifying flexible and scalable business models that are cost-effective and profitable.
According to the United Nations, Africa’s agriculture industry is estimated to be worth $1 trillion dollars by 2030. This is why crowd-farming is a business that will never fail. Crowdfarming involves pulling funds together to invest in rural farmers and sharing the profits at harvest time. Crowdfarming boosts food production, cut down the cost of money spent on import and make more money for farmers and investors. Crowdfarming startups like FarmCrowdy and ThriveAgric in Nigeria are creating platforms for working-class Nigerians to invest in agriculture.
Solar power, as a multi-billion industry continues to attract entrepreneurs and investors across the continent. This is because over 600 million Africans are getting tired of waiting for energy from centrally managed power grids, that are prone to collapse and structural inconsistencies. Worse is they can’t meet the continent’s demand for power. Off-grid solar is a billion-dollar business that will never fail in Africa because the continent enjoys over 300 days of sunlight in a year. BBOXX has signed various strategic deals with governments in Africa to provide solar to their population. Entrepreneurs looking to invest in this business will benefit from the World Bank Climate Action Fund and other private sector funds.
Global investment banking giants like Goldman Sachs, Silicon Valley players, Y combinator and Partech Ventures are taking interest in African startups and pouring money into businesses on the continents. This business will never fail because African investors have also seen how previous investments helped these firms grow and mature. Reports say a total of 633 startups in Africa raised a combined $3.3 billion in 2022. This was 55.1% more than the $2.15 billion raised in 2021 by 564 African startups. This shows that startups are here to stay and it’s time for you to take advantage of it.
Business Process Outsourcing
The increasing popularity of e-commerce and the digital economy has led to an increase in demand for data, real-time service and a presence across multiple platforms. This demand is making several companies outsource departments like human resources, customer service, accounting, etc. Outsourcing in Africa is becoming a big thing as countries like Morocco, Tunisia, Senegal, Mauritius and Madagascar have a growing BPO market. Companies like Samasource, and Andela have attracted significant investment that validates the longevity of this business on the continent.
Online Financial Solutions
According to reports, Sub-Saharan Africa has one of the largest populations of unbanked adults, at about 350 million – or 17% of the global total. This makes this business a very lucrative one. Entrepreneurs can use mobile phones and internet services to create solutions to financial problems and increase financial inclusion on the continent. From processing payments and money transfers (Paystack, PalmPay,) to savings (Piggyvest) and access to credit, opportunities abound in the financial digital world.
By 2030, half of the 1.4 billion people in Africa will be located in the city. While this looks good, most cities on the continent have not been able to provide diversified systems of transport. This is why urban logistics will continue to thrive. Rather than go through the stress of going to the market to get food, vendors like Twiga foods in Kenya are attending to orders and delivering foodstuff to the doorsteps of city dwellers. Also, Max in Nigeria provides infrastructure and services to taxi drivers across Africa.
As Africa continues to experience the highest trend of rural-to-urban migration, Affordable housing is a business opportunity to look into. This involves providing affordable accommodation from unique materials. Entrepreneurs are building homes from cheap and durable materials like shipping containers. These homes are affordable and have the capacity to generate income for entrepreneurs in a fast-changing urban world.
Branding local products for exports
Africa has a lot of local products that can be rebranded and exported for huge financial gains. From crude oil, cocoa, minerals, timber, and coffee, the continent is filled with a lot of local products that can be processed and repackaged as exports. For example, Fairafrica is focusing on making chocolates from cocoa beans harvested and processed in Ghana. The company targets consumers in Europe and has made a huge profit from exports. This business will never fail, rather it will create billionaires in the coming years.
Virtual event planning
With a yearly 23 per cent growth, virtual event planning will never fail. This is because there is a significant increase in business events and the adoption of virtual tools for conducting meetings. As tech start-ups continue to increase across the continent, virtual events will continually be a great tool for networking, and organising educational sessions and conferences. Also, with Facebook’s move into the universe, virtual event planning is here to stay.
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