In this post you'll get information about the top 17 untapped business opportunities in Africa 2022. So many untapped business opportunities in Africa
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022 - digitalskillsguide.com
In this post you'll get information about the top 17 untapped business opportunities in Africa 2022.
There is an ancient phrase that “no man is an island.” It is used to stress the truth that we all rely on one another to exist as humans.
This aphorism may also be extended to nations, as no country can accomplish economic growth and development on its own without the aid and participation of other countries.
Even the most advanced nations in the world require aid from other developed countries from time to time.
Why Should You Start a Business in Africa?
Africa is a fast developing continent with so many untapped business opportunities, and many foreign investors know that there is enough of money to be gained there. There are numerous untapped business opportunities in Africa that many investors and corporations are unaware of, particularly considering the continent’s modest but undeveloped economy.
This is not to say that Africa has not evolved, as there are several countries that have undergone economic reforms and are one of the best places to invest when compared to other countries in other regions of the world, especially because the returns can be much higher than those found in the developed world.
According to research, African nations achieved a 14 percent yearly return on investment, with Africa home to nine of the world’s fifteen fastest expanding economies. The African continent is not only rich in farmlands, but also in people and natural resources, and as the world’s population expands, these resources will become increasingly significant.
Do you want to launch a business in Africa and attract foreign direct investment? If that is the case, here are 17 unique, undiscovered and untapped business opportunities in Africa 2022.
Top 17 Untapped Business Opportunities In Africa 2022 Table of Contents
Top 17 Untapped Business Opportunities in Africa 2022
#1. Agriculture and Agribusiness
Because of its ideal climate and enough rainfall, Africa makes a great area to start an agricultural business. Cocoa, coffee, and tea are among the continent's most famous agricultural exports. A major reason for this is that agriculture is one of the continent's most underutilized economic sectors.
It is possible to raise chickens for the purpose of export or local sale of the eggs produced. Dairy and meat cattle are also available for purchase. The ability to produce high-value dairy products like yoghurt and cheese is one of the many advantages of owning a milk processing facility. In Africa, fish farming is also a lucrative economic opportunity.
A ready market exists for agriculture, and the climate in Africa is ideal for growing crops. Countries like Uganda, Tanzania, Ethiopia, Zambia, and Tunisia are ideal locations for this enterprise. In addition, there are many more ideas at Profitable Agro Processing Business Ideas.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#2. Materials Used In The Construction Of Buildings
There will be plenty of money for African businesses to go around, as the continent is currently experiencing a building boom.
It's no surprise that Africa's richest man, Aliko Dangote, is heavily involved in the cement industry. Among other things, cement is an important building block in the construction of factories, office buildings, roads, and bridges.
Cement imports used to cost Africa tens of billions of dollars. But not anymore. Dangote and other cement producers, such as Lafarge, are growing swiftly across Africa..
Building and construction materials are in great demand across Africa, but cement is just one of many of these commodities Other than cement, steel has the potential to be a multibillion-dollar business.
The continent's construction boom is also driving up demand for other items including timber, roofing materials, glass, paints, and plumbing and electrical supplies.
#3. Opportunity For E-Commerce Business
There is still a lot of room for innovation in the e-commerce business in Africa. Amazon and eBay looked to have E-commerce in their grips at the time, but Shopify came out with a new type of E-commerce firm that was a huge success.
Many people prefer to purchase from the convenience of their own homes, making e-commerce one of the most profitable businesses today. Create a one-of-a-kind concept, such as Shopify, and you can be guaranteed that foreign investors will be ready to cooperate with you.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#4. Real Estate
One of Africa's best business ideas for 2021 is real estate. Nearby cities and small towns are in high demand for property in Africa. Owning a piece of land is one of the most sought-after investments. For new recruits, it is the most important issue.
Big property purchases can provide huge profits when they are divided into smaller parcels and sold. An idea like this has a good chance of succeeding. Land doesn't go down in value as the need for it grows by the day.
In Kenya and Tanzania, for example, these firms are thriving. You can get more details. How to Invest in Kenyan Real Estate and How to Start a Real Estate Firm in Nigeria.
#5. Funding For New Startup
More and more people are investing in African businesses, with a 300% rise in only one year. Considering that many African economies only grew by 3% throughout the period, this is a tremendous achievement.
However, despite a rise in funding from local investors, a large portion of the money comes from investors outside of Africa (particularly China).
Are these foreign investors who have a taste for Africa now putting money into the continent's new businesses?
In addition to Goldman Sachs, the Global Innovation Fund, and Y Combinator and Partech Ventures in Silicon Valley, there are also international development agencies like the World Bank and significant private companies such as Stripe, Visa, and Tencent in China.
In the last year, the total amount of investments in African firms has grown, but this isn't the first time this has happened. In addition, the volume of individual transactions grew as well.
More African enterprises than at any previous time in history have received funding in excess of $5 million. For a total of $626.9M, in 32 distinct deals, 30 firms raised more than $5 million in 2017.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#6. The Green Revolution
Products and services that are healthy for the environment are becoming increasingly popular across the world. Because of the issues faced by climate change, any solution that preserves the natural environment, eliminates waste and pollution, and stimulates reuse and recycling has become a big commercial opportunity.
Several African enterprises and entrepreneurs have already begun to take advantage of this opportunity, and the results have been spectacular.
A footwear firm founded by Bethlehem Alemu has become the first in Ethiopia to produce shoes that are completely biodegradable. Customers in North America, Europe, and as far afield as Japan buy footwear made from recycled rubbish from this incredibly successful firm.
Thato Kgatlhanye, the brains behind Repurpose Schoolbags, repurposes throwaway shopping bags into eco-friendly backpacks. There’s also Patrick Ngowi, a Tanzanian entrepreneur who has developed a multi-million dollar solar-powered enterprise. Another significant possibility in Africa is the manufacturing of biogas from organic waste.
Following the Green Revolution topic will be an interesting experience.
#7. Health Care at a Low Price
In the area of health care, Africa is in a precarious position. Underfunding plagues public hospitals, and many doctors leave Africa to practice in more industrialized countries. More than 43 percent of the people in Africa is now out of poverty as a result of strong economic growth in recent years.
By 2050, Africa's population will have grown to 2.5 billion people. The area has a significant challenge: establishing the foundation for long-term equitable growth. In many African countries, baby and maternal mortality rates remain high.
There are far too many cases of malnutrition, and most health care systems are ill-equipped to deal with epidemics and the rising burden of chronic disorders like diabetes. As a result, the health-care infrastructure in Africa is in a bad state. Entrepreneurs have the opportunity to provide affordable health care to Africans because of the continent's rapidly expanding population and high incidence of sickness.
#8. Open Private Schools At A Reasonable Price
As a result, the standard of public school education across Africa is plummeting. A lack of expertise, a shortage of funds, and an increase in population are all to blame.
As a result, many African parents prefer to send their children to private schools to ensure that they receive an excellent education.
The establishment of a private school is a business concept that has already been adopted by several entrepreneurs in Africa, and they are reaping the benefits.
In order to change the world, education is the most powerful weapon you have at your disposal (Nelson Mandela).
Even if the MDG of universal primary school enrollment is achieved by 2015, several African countries would fall short of it.
Out-of-school children are still a problem across the world, despite the fact that the Sustainable Development Goal 4 was adopted some years ago (SDG 4).
Around 101 million children in Sub-Saharan Africa were enrolled in primary school as of 2010, with the private sector accounting for 10% of total enrollment, according to the UNESCO Institute for Statistics (or almost 10 million kids).
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| Top 17 Untapped Business Opportunities in Africa 2022 |
#9. Alternatives To Cash Payments
In Africa, more than $100 billion worth of transactions are still made in cash annually. This implies a huge and profitable financial services opportunity for intelligent enterprises.
With over 200 million transactions processed each year in Kenya and Tanzania, the M-Pesa platform has proven to be a fantastic mobile money transfer and payment service.
In other parts of Africa, there is a huge need for Africa's next major money transfer and payment firm.
In Nigeria, the continent's largest economy, a number of prospective businesses are battling for supremacy. There are a number of major players in the market, including PayAttitude, SimplePay, and PayWithCapture.
Paga obtained a $13 million investment less than six months ago in order to expand its operations both domestically and internationally. A large bet with a high reward potential. In the next years, payment solutions will be an essential issue to keep tabs on.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#10. Cybersecurity and Data Storage
It costs African businesses more than $3.5 billion a year to be hacked and targeted by cybercriminals. Cybersecurity is swiftly becoming one of Africa's most important emerging business possibilities due to the possible damages and losses at risk.
People and organizations of all shapes and sizes are being targeted. There are a variety of attacks, ranging from simple email scams to large-scale data theft, ransomware, espionage, and critical infrastructure destruction.
Around 96% of cybersecurity incidents in Africa go unreported or unresolved, according to the Africa Centre for Strategic Studies. This suggests that cyber risks on the continent are likely far bigger than government estimates show.
#11. Outsourcing
Currently, BPO is a multibillion-dollar worldwide enterprise that is expected to reach $52 billion in market size by 2023, rising at an annual pace of 11 percent.
Businesses are increasingly relying on data, real-time services, and a presence on several platforms as a result of the rise of e-commerce and the digital economy. As a result, an increasing number of companies are offshoring their accounting, data processing, customer service, human resources, and supply chain needs.
Africa has emerged as a key player in BPO for the worldwide Francophone market while India and the Philippines have profited from the growth in IT outsourcing demand in the United States and the United Kingdom.
Growth in the number of BPO companies in Morocco, Tunisia, Senegal, Mauritius, and Madagascar has been fast during the past several years. BPO is Africa's leading business in Morocco, employing almost 70,000 people. Madagascar's number of BPOs rose from a handful in 2005 to 233 in 2018, an increase of more than 1,000 percent.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#12. Logistics In The Urban Environment
The number of Africans moving to cities and metropolitan areas is on the rise. Up to 1 billion Africans are predicted to reside in cities by the year 2050, making it the continent with the highest urbanization rate in the world.
Seventeen cities with populations of more than five million people and 90 cities with populations of at least one million are expected to exist in Africa by the year 2030. There will be 14 megacities on the continent by 2050, according to the United Nations (UN).
Large cities provide tremendous economic potential, but they also present significant logistical challenges in terms of locating people and delivering goods and services to its residents and visitors.
The lack of a formal address system in several of the continent's major urban areas is a notable example.
In some parts of Africa, doing business might be quite difficult if you don't have exact and verifiable addresses. It is difficult to verify a person's identity, complete a customer's purchase or monitor location data for e-commerce companies, banks and energy providers.
One Kenyan enterprise has risen to the occasion, to the surprise of many. Ex-Google employee OkHi uses GPS technology, photographs, and phone location data to identify hard-to-reach locales.
Investors have provided OkHi with $1.5 million in capital to expand its service to other countries, which has validated over 300,000 addresses so far.
Getting goods to their final destination can be a huge logistical challenge.
This puts a lot of strain on Africa's transportation infrastructure, making it more difficult to move goods throughout the continent as the population grows.
It's a nightmare to move about in most African cities, and things are just going to get worse.
A growing number of organizations are aiming to solve urban last-mile delivery problems in Africa by integrating technology with a network of agents on motorcycles, autos, and trucks.
#13. Low-cost Housing
Housing is a basic human need, yet for many Africans, especially those living in cities, it is beyond of reach. Housing shortages in African cities can be alleviated by providing low-cost housing options, such as trailer homes or tiny houses, as well as dwellings made using non-traditional building materials.
Businesses that deal with life-threatening issues have an easier time attracting foreign funding and investments.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
#14. Access To The Internet And Other Forms Of Communication Technology
In Africa, the internet market is worth billions of dollars, according to estimates. It's no surprise that the likes of Google and Facebook are working tirelessly to improve internet access for millions of Africans. Project Loon by Google and Free Basics by Facebook are just two of many bold attempts to connect Africa.
Many African entrepreneurs have already made considerable breakthroughs in the internet access market. Another example is BRCK, a Kenyan company that has produced a robust internet modem device designed for environments with restricted internet connectivity and electricity, such as military bases, prisons, and military installations.
The modem can switch between Ethernet, WiFi, 3G, and 4G networks and has a battery life of eight hours.
#15. Fashion And Beauty
The fashion and cosmetics sector in Africa is growing at an astronomical rate. For fashion-forward clothing, Europe's young population provides an ideal market. Clothes of all kinds, from locally-made fabrics to imported designer labels, are becoming increasingly popular in Africa's fast developing urban areas.
Fashion and cosmetics enterprises are being founded by a large number of rising stars in Africa.
Unilever, P&G, L'Oral, and Mary Kay are some of Africa's most powerful multinationals in the beauty and personal care market, but Suzie Wokabi is one of Africa's most successful entrepreneurs. It has been seven years since she started Suzie Beauty, a cosmetics company in Kenya.
In the fashion industry, there is a long list of possible business owners from Africa. It would be interesting to keep a watch on this untapped business opportunity in Africa.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
Top 17 Untapped Business Opportunities in Africa 2022
#16. Employee Training
Graduates need further training to enter the workforce, and those who are already working need to keep their skills up to date on a regular basis. As a result, more professional training institutes are needed.
If you have staff in the front office or digital marketing or computer courses like Microsoft Excel or M&E or safety training or HIV/AIDS in the workplace you may educate them on these topics.
Nigeria, Zimbabwe, South Africa, and Kenya are all African countries with well-established educational systems that might benefit from this business model.
#17. Off-Grid Solar Istallation & Power Supply
In the midst of Europe and North America's debates about the best way to switch to renewable energy, Africa provides a clean and open slate for solar.
This multibillion-dollar enterprise is attracting entrepreneurs and investors from within and outside of Africa to its fight to provide solar power to all of the continent.
Off-grid solar solutions have immense potential, making solar one of the most intriguing business prospects in Africa right now.
The need is great, as is the supply.
In Africa, more than 600 million people are fed up with having to wait for energy from centrally managed power networks that are slow to deploy, inefficient, and insensitive to the continent's rising power demands.
A gadget that bypasses the central power grid and meets your energy needs by tapping directly into the sun is a tough sell in Europe, which has an average of over 300 days of sunshine per year in many locations.
Since then, the African solar business has grown, and the number of enterprises in this area has continued to rise. Consequently
There is an arrangement in Togo worth $4 million to deliver off-grid solar equipment to 300,000 people, as well.
It has been estimated that the off-grid solar energy business in Africa has received roughly $1 billion in financing so far from firms like M-Kopa (offgrid electric), Azuri (mobisol), Lumos (glp), and others.
This will undoubtedly be an interesting sector to follow as more money and companies compete to meet Africa’s huge need for off-grid solar solutions.
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| Top 17 Untapped Business Opportunities in Africa 2022 |
