What is the most profitable business in Africa?
Africa has seen dramatic growth in its economy over the last decade. Despite being called one of the poorest countries, Africa presents many potential resources and entrepreneurs that it could profit from.
Six of the top ten economies that are growing fast worldwide comprise of African countries. In addition, famous businessmen and experts think of Africa as among the top desirable destinations for investment across the globe. There’s no reason to wonder why many entrepreneurs are excited about opening their own business on the continent.
If you’re thinking of starting or expanding your company, Africa is an ideal location to begin.
Here are some few profitable businesses you could think about:
Retail
The retail market in Africa is a multi-billion-dollar business opportunity. Apart from its 1 billion inhabitants and growing, more Africans are purchasing goods because of their expanding economies, growing middle class, and the rapid growth of urbanization.
The retail market in Africa is undergoing a massive change. The retail industry is slowly moving away from trading on open markets and towards organized retail outlets in shopping malls as well as online stores. The African-owned supermarket chains such as Shoprite, Game, Woolworths, and Nakumatt are expanding to more countries quickly across the continent.
The rapid growth of the market for online retail in Africa is even more astonishing. Jumia is among the fastest-growing businesses in Africa’s online retail, which is now worth over $500 million. It has a presence in various African countries, including Egypt, Cote D’Ivoire, and Nigeria. Jumia is now known as the “Amazon of Africa.”
Another market for online retail that has significant advancements is Konga. It was ranked the top Startup within Nigeria in 2015. Some other promising new startups include Jiji, along with Dealdey.
Notice: Konga merged with Yudala to create a larger brand.
Despite the explosion of online retailing in Africa, the segment currently is only a fraction of Africa’s whole retail market. There’s plenty of space to cater to the African market, and plenty of money could be made.
Seizing the African Retail Opportunities is a thorough report that provides a stimulating analysis of the possibilities in the African retail industry. The report states that Rwanda, Nigeria, Namibia, Tanzania, and Gabon present the largest potential for retail in Africa.
Fashion & Beauty
The African market for fashion and beauty is growing at a rapid pace. The continent’s large and youthful population is a prime source of fashionable wear. Any kind of clothing made locally, as well as imported designer labels, are now a hot item in the rapidly growing urban areas of Africa.
Africa has a wealth of promising stars who are creating successful companies in the beauty and fashion industry. I’ll give you a few fascinating examples.
Suzie Wokabi is one of Africa’s top entrepreneurs who are breaking into the personal and beauty market, which is dominated by global giants such as Unilever, Procter & Gamble, L’Oral, and Mary Kay. Suzie Beauty Cosmetics, the cosmetics company she established seven years ago in Kenya, is now hugely profitable.
Kunmi Otitoju is another inspirational entrepreneur who has established a successful business using her luxurious brand, Minku. Her young venture produces premium leather bags made from Aso-oke, which is a hand-loomed fabric woven from Nigeria’s Yoruba people. Her distinctive designs have become an instant hit in luxury shops in Nigeria.
A list of promising African entrepreneurs that are building profitable companies in the clothing sector is impressive. It’s an interesting business to watch.
Solar Power
Many regions in Africa are blessed with at least 300 days of sunlight throughout the year. Due to this, there is an abundance of solar energy throughout African countries. However, many African families are left without electricity.
The greatest benefit of solar electricity is the fact that it’s completely free and is sustainable. Many companies have made use of this source of power to supply electricity to millions of African homes.
If you’re a lover of renewable energy, the solar power industry might be a viable business idea.
Agribusiness
Certain regions of Africa have conditions that are ideal for agriculture. In reality, Africa owns 60% of the world’s arable soil. But, the majority of farmers in Africa don’t have access to capital to grow their own soil. If the citizens of the countries only depend on farmers for their livelihood, then many African nations will be facing food shortages.
This is why agriculture in Africa is still profitable. Recently, the idea of “crowd-farming” is receiving significant attention from the general public. Crowd farming occurs when members collectively pool their funds to assist farmers in producing food. The investors receive a supply of these crops during the harvest time.
The African government is currently spending around $30 billion on imports of food. But, if the people continue to invest in local businesses in agriculture, The country is able to produce enough food to feed its population. This reduces the requirement for the government to invest a lot of money on imports of food items.
Affordable Housing
As more and more people are moving into urban areas and there’s a growing need for affordable housing. Although the federal government has done everything it can to offer affordable housing, there’s the need for more homes to accommodate all immigrants. This is a source of opportunity for entrepreneurs with capital and expertise to take advantage. It is possible to begin a real estate housing business to meet the demand.
Waste Recycling
Africa produces large quantities of waste each day. A majority of them end up being burned or dumped in the water and landfill bodies. This is a problem for those living in the African population.
Hygiene and cleanliness are just two of the major issues Africa has been facing for a long time. If these issues are not addressed in the future, the situation will increase. Fortunately, entrepreneurs from South Africa and Ethiopia found an approach to transform waste into an effective resource.
Agriprotein is a South African invention that turns leftover waste into animal feeds. In Ethiopia, they gather the garbage from their cities and turn it into energy. This enabled companies to supply electric power to millions of households across the country.
Forty percent of the increase in population in the world will be based in Africa by 2050. As a result, the volume of trash is also predicted to rise. When you begin a company for recycling waste right now, you’ll stand a possibility of reducing waste before they pile up. Recycling your waste can be a chance for companies to benefit the African environment as well as the people.
If you’re looking to ignite your imagination with innovative, fresh, and practical business concepts that have been proven to work in Africa, This is the right resource for you. If you’re looking to inspire yourself with the stories of successful African businesses and entrepreneurs, you are in the right place.
