- There is an explosion of entrepreneurship in Nigeria with many Africans taking on various sectors where they dominate
- There are plenty businesses in Africa with great potentials for profit on the continent which has earned the owners huge revenue
- Multiple reports highlight various business types with high-yield potentials in Africa which entrepreneurs can take on
Africa has proven to be a fertile ground for investment as more investors pour into the continent as it boasts a young and virile population.
Rising inflation and insecurity notwithstanding, businesses are fast-growing in Africa.
Firms with good financial standings make huge profits from the continent’s fast-growing population and rich resources.
The businesses that thrive in Africa are based on their growth rate and the potential for huge revenue generation.
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According to the World Bank, Market Watch and other sources, the businesses are compiled as follows.
Financial technology businesses continue to perform more than other startups in Africa in solving financial problems.
Tech Crunch report says Africa is the world’s second-fastest-growing and most profitable payments and banking market behind Latin America. It is home to over 500 fintech firms, most of which are domiciled in Nigeria, South Africa and Kenya.
The World Bank estimates that about 66 per cent of Sub-Saharan Africa’s population remains without bank accounts. This population is one of the reasons fintech business boom on the continent as they use technology to fine-tune, automate and improve financial services for consumers and businesses.
Another report also states that 75 per cent of Nigerian fintech startups earn about 5 million annually. Due to the continued funding for fintech firms on the continent, the sector will continue to accelerate as internet expansion and usage of smartphones increase.
The food business is one of the ventures on the continent with huge potential for growth. Business Standard reported that the food industry in Africa recorded a 3.6 per cent growth between 2020 to 2021.
This growth, the report said, was driven by soaring demands for packaged and processed foods and the high consumption of frozen dairy products, according to a Business Insider report.
The Russian invasion of Ukraine, low buying power, and insecurity are causing the prices of food to skyrocket in Africa. Food entrepreneurs in Africa are benefitting from the demands of feeding over billion people on the continent.
Property and Real Estate
With the large population of Africa, there is a soaring demand for commercial and residential properties, which makes real estate grow by 1.77 per cent last and 10.84 per cent Q1 of 2022. The Egyptian real estate sector generated over $10 billion, which represents a 21 per cent growth.
The real estate business in Egypt has a growth projection of 6.5 per cent in 2022, while Kenya’s recorded a 5.2 per cent growth in the third quarter of 2021 and is expected to grow by 5.9 per cent this year.
The real estate business is business one of the most profitable businesses in Africa with investors earning from leasing, purchasing and rent of commercial and residential properties.
Despite its high yield, it requires knowledge of the sector and experience. To make a profit, entrepreneurs need to seek knowledge from experienced realtors.
The increase in the purchasing power of many people in Africa has given rise to the emergence of many e-commerce businesses on the continent.
Companies playing in the space allow people and firms to trade goods and services via the internet. It is reported that Africa’s e-commerce sector secured over $256 million last year alone which represents a 40 per cent growth from the year before.
The sector is expected to make about $46.1 billion by 2025. The highly-profitable business involves facilitating sales of goods and services between companies and clients. They also facilitate the sales of goods and services through third parties like Konga, Jumia, eBay, Thryve Platforms and Kilimall.
The logistics business in Africa has proven to be a lucrative one, especially in Nigeria where the business has taken a firm root.
Countries like Mauritius, South Africa, Ethiopia, Ghana, Kenya and Nigeria see entrepreneurs earn huge revenues from logistics businesses.
The report said that Egypt’s Suez Canal made a revenue of $704 million in July 2022, which represents a boost from the $531.8 million which was reported in July 2021.
The logistics and Freight business is expected to grow with a growth of 3 per cent from 2022 to 2027. Delivery companies help the transfer of goods to clients’ destinations.
New report shows African countries with the highest number of women entrepreneurs
Legit.ng reported that the 2021 Mastercard Index of Women Entrepreneurs has ranked Botswana, Uganda and Ghana as the countries with the highest number of female entrepreneurs for the third consecutive year.
Botswana came tops with a 38.5 per cent increase in women who run businesses in the country, followed by Uganda at 38.4 and Ghana at 37.2 per cent.
Business Insider said the index is calculated as a percentage of total business owners. This edition of the ranking spotlights the impact of women businesses on the socio-economic contribution of women entrepreneurs across the globe, including in Africa and it gives insights into the elements propelling and hindering their progress.