5 African Business Opportunities Making Millionaires in 2020

A recent Africa Wealth Report revealed that there are about 140,000 US Dollar millionaires in Africa. Entrepreneurs on the continent continue to explore new technologies and business possibilities to build highly lucrative businesses that generate millions in revenue.

Most of the young millionaires in Africa are young entrepreneurs, startup founders and investors. There is no overlooking the harsh effects of the COVID-19 pandemic on the continent’s economy, but the businesses we’re about look have proven to remain lucrative despite the disruptions caused by the pandemic.

1. Fintech

Africa’s underdeveloped financial services received a boost from the fintech industry over the last 3 years, no other tech sector in Africa has received more funding than fintech. African fintech startups were able to raise a combined USD 678.73 Mn in funding in 2019 alone.

According to Digest Africa, Some of Africa’s fintech startup with the most funding are, Yoco ($18M), Zoona ($19M), Flutterwave ($20M), Paga ($35M), Carepay ($45M), etc. Think about the millions of dollars these companies have made for their founders and stakeholders.

This high level of investment in fintech does not come as surprise, seeing that the industry is a key driver for financial inclusion on the continent where 66% of the population is unbanked. The industry is still faced with a lot of problems such as a clear bill, customer-centric loans, hardware and software support, among others. There’s no better time than now to kickstart your fintech business or invest in one.

2. Logistics

According to Statista, Africa’s third-party logistics industry is rapidly growing, with total industry costs exceeding 355 billion U.S. dollars. WIth the COVID-19 pandemic and alot of social distancing ongoing, more people are using logistic platforms such as Sendy, Kobo360, Lori, etc.

Twiga Foods uses technology in Kenya to pool the orders of many urban distributors, saving them a market trip by delivering them to their doorstep. It is now Kenya ‘s largest distributor of a range of essential food staples, and last year, the start-up received $10.3 million.

MAX is a fast-growing start-up in Nigeria which offers last-mile delivery services. For customers who have vital deliveries who need to beat the infamous congestion on Lagos highways, it launched an on-demand motorcycle delivery service last year.

3. Solar Energy

Solar energy is one of the most plentiful natural resources in Africa. Every year, most parts of sub-Saharan Africa enjoy more than 300 days of free sunlight.

Currently, over 600 million people on the continent do not have access to reliable electricity, especially in rural areas. Power outages are common in most cities and towns and people often have to resort to noisy petrol and diesel power generators.

Solar power is abundant, completely clean and plentiful. And it offers the best option for people who are out of reach of power grids in remote parts of Africa.

Interestingly, some smart entrepreneurs are taking up the task of using solar energy to light up Africa, and are very likely to join the club of millionaires.

Bboxx, an Africa focused renewable energy solution company which designs, deploys and finances decentralised solar-powered systems across Africa, recently secured $50 million in funding.

Recently, Off-Grid Electric, a Tanzanian solar power provider, raised $25 million from foreign investors and received a $5 million grant from USAID. The business is already on track to supply 1 million homes in East Africa with solar power by 2017 and has recently expanded into Rwanda.

READ ALSO: 5 Businesses You Can Start with Nearly No Capital in Africa

4. Agribusiness

Agribusiness is the unexplored treasure trove of Africa and, in 2016, a big potential source of millionaires. The African agribusiness sector is estimated to be worth $1 trillion by 2030, according to a World Bank survey.

Sub-Saharan Africa definitely has the potential to become the world’s largest exporter of food items, with up to 60 % of the world’s uncultivated arable land, rich soils, abundant labour, and year-round sunshine.

Even if Africa chooses to disregard export markets, the one billion people on the continent provide a massive, ready-to-use market for agribusiness.

5. Smartphone Sales

After Asia, Africa is currently the second fastest-growing cell phone market. The first wave of the cell phone revolution in Africa is nearly over.

These days, African customers are looking to upgrade to smartphones from ‘first generation’ feature phones. No wonder the continent’s rising population of technology and fashion-savvy youth now has a multi-billion dollar smartphone industry.

Overall, feature phone shipments to Africa were flat year over year at 0.3 percent in the first quarter, with shipments topping 31.6 million units. Transsion (Techno, Infinix and Itel phone manufacturer) remains the biggest smartphone seller in Africa with 37% market share in 2020. Feature phones, with a 59.9 percent market share, also dominate the African market.