One of the competitive advantages of conducting business in Africa is having access to a large, youthful, and growing population. Africa is the second most populous continent in the world with 1.2 billion people as of 2016. Over 70% of the demographic is under 35 years of age and are willing to adopt every medium of new technologies in order to get the full advantages of the modern age and the benefits of life.
Africa is a prime destination full of new investment ideas and opportunities. Chances to revamp the existing business practices, which were previously mismanaged are abundant. Due to the wide range of diversity in African business, competition is highly fragmented.
Some of the business opportunities highlighted from recent research by economy experts are:
Electrical power is a major component that is needed to drive other business ideas in the land of Africa. There are many ways to enter the power sector as a business opportunity. The existing deficiencies in power supply across the continent allows for management of the power sector to be handled by more private firms in order to create more manageable and consistent power conditions. People in the diaspora can join the investment tracks of private firms like the African Power Corporation (APC) an investment holding company, or Deloitte.
Diasporans can also look into installation of more solar power panels and converters as a lucrative business opportunity, if well managed by experts.
Apart from firms that invest in electricity to power businesses, more than 600 million individuals still depend on noisy generators as an alternative for “golden electricity” on average, generators are used for about 300 days in a year across Africa. A solar plant in a community or county can serve as a rescue camp for electric supply.
The majority of people in Africa still move with cash even for huge businesses that require a lot of money. The risk of carrying such large amounts of cash helped to give rise to the innovation of mobile payments and other cashless technologies. With the population of youth who crave for this easy style of payment, it seems certain that investors will always smile seeing their business growing amazingly in Africa in the mobile money sector.
Petroleum Upgrading Technologies
Even though the price of crude oil is not currently appreciable, refined petrol still determines the price of other commodities because of its high effect on transportation. Technologies to upgrade rate of fuel burning and the life-span of fuel is now a lucrative business, especially in absence of low level indigenous refineries.
Provision of food also shares a large portion of investments in the African economy. Many countries have placed bans on importation of food in order to enhance domestic production. Meanwhile, machinery and other technologies, were not provided to increase output, thereby making the demands of food higher than supply, almost up to 80% in some countries.
Buying and selling modern/modernized farm equipment is a good investment strategy for Diasporans who want to look into the agricultural sector for business, when going back to Africa. Storage and processing facilities can also be considered a solid agribusiness investment.