The continent is currently experiencing an influx of ideas, innovations, and revenue, driving a relentless economic transformation.
Africa is growing in population, splendor, and strength, presenting significant financial potential through its people and resources.
The economies of countries such as Nigeria, South Africa, and Kenya have significantly boosted the continent’s overall revenue.
New market potentials, combined with Africa’s arable and resource-rich lands, have led many experts to predict that Africa could become a major economic player on the global stage, provided the wealth pouring into the continent is properly managed.
So, what are the most lucrative sectors to invest in now? Read on to find out…
Several sectors are directly tied to the population growth of an economy, and transport and logistics are prime examples.
Interstate and overseas travel are at an all-time high, and local transportation demand has never been greater. Logistics, too, is booming as the need to transport cargo increases.
For instance, Lori, a Kenyan e-logistics company digitizing haulage, has helped thousands of shippers and carriers move over $10 billion of cargo across the continent since its founding in 2017. This is just one of the many logistics companies making significant strides in the African economy.
Real estate is another market directly tied to population growth. As the population increases, so does the need for housing, land ownership, real estate investments, and infrastructure.
AfricaWorks, a flexible co-working space provider, exemplifies success in this sector. Recently listed as the 4th fastest growing company in Africa by Financial Times, AfricaWorks proves the real estate market in Africa is ripe for investment.
Africa’s internet penetration is low compared to other continents, making this market’s future very promising. As technology becomes more accessible and affordable, more people will adopt it.
Telecom companies are already raking in billions of dollars in annual revenue. For example, in 2021, MTN Group, Africa’s largest telecommunications provider, had an annual revenue of $5.6 billion with 277.3 million subscribers. Orange Africa and Vodafone also reported significant revenues and user bases. Telecommunications is a sector that’s here to stay.
This sector merges agriculture with technology, creating tech-driven solutions that the African agricultural sector desperately needs. These digital solutions inspire more innovative minds to contribute to this growing industry. For example, Nigerian agri-tech startup ThriveAgric raised $58.15 million, the largest fundraising in the AgriTech sector this year. Ghanaian-based Agtech Farmerline also raised $12.9 million in equity debt to help farmers access quality supplies.
The fintech explosion in Africa is largely due to the penetration of mobile phone technology. This sector attracts substantial funding each year and is home to several tech unicorns. Notable fintech startups like Flutterwave, Chippercash, and Fawry are solving real problems for large user markets. The space also includes ‘soonicorns’—companies on their way to becoming future unicorns—such as TeamApt and Kuda Bank.
Africa’s economic landscape is evolving rapidly, and these sectors offer lucrative opportunities for investment and growth.