The continent is currently experiencing an influx of ideas, innovations, and revenue, propelling an unrelenting economic reformation.
Africa is growing in population, splendour, and strength. There is a lot of financial potential both with her people and resources. The economies of countries such as Nigeria, South Africa, and Kenya, among others, have prompted a significant rise in the amount of revenue the continent generates as a whole.
New market potentials coupled with the continent's arable and resource-filled lands have led many experts to deduce that Africa could become a major economic player on the global stage, assuming the massive wealth pouring into the continent is properly managed. So the question is, what are the most lucrative sectors to invest in now? Read on to find out...
1. Transport and logistics: Several sectors tie directly into the population growth of an economy. Transport and logistics is one such industry. Interstate and overseas travel is at an all-time high, and local transportation has never been in such high demand. The same goes for logistics as there is more need for people to transport cargo. As reported last month by Business Insider Africa, 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 one of the many logistics companies making huge strides in the African economy.
2. Real Estate: Real estate is another market that is directly tied to the population rate of an economy. The more people there are, the more need there is for housing options, land ownership, real estate investments, and infrastructures. AfricaWorks, a flexible co-working space provider on the continent, is a prime example of what success looks like as a corporate real estate company. The company was recently listed as the 4th fastest growing company in Africa by Financial Times, proving that the real estate market in Africa is ripe for the taking.
3. Telecommunications: Unlike other continents, the internet penetration of Africa is deplorable, to say the least, which is why the future of this market seems very encouraging. As tech continues to become more accessible and affordable, more people within the continent would have no choice but to get with the times. Telecom companies are raking in billions of dollars in annual revenue. As of 2021, MTN Group, Africa's largest telecommunications provider, had an annual revenue of $5.6 billion with a userbase of 277.3 million subscribers; Orange Africa had $6.8 billion with a user base of 130 million subscribers, and Vodafone brought in $6.8 billion with a user base of 123,7 million subscribers. Telecommunications is a business that is here to stay.
4. AgriTech: This is a rather interesting sector to key into. It's the sweet spot where agriculture meets tech, creating tech-driven solutions the African agricultural sector desperately needs. These digital solutions act like a ripple effect as more innovative young minds seek to make their contributions to growing this now lucrative industry. Just this year alone, Nairametrics reported the top 5 Logitech startups with the highest amount of funding received. Sitting atop that list was Nigerian agri-tech startup ThriveAgric which recorded the largest fundraising in the AgriTech sector, coming in at a whopping $58.15 million. Ghanaian-based Agtech Farmerline has also raised $12.9 million in equity debt to help farmers access quality supplies.
5. Fintech: The fintech explosion in Africa is large because the general African fintech wave followed the penetration of mobile phone technology. The growth of this sector is evident by the huge amount of funding it attracts each year. There are currently seven tech unicorns in Africa, with fintech unicorns being the majority. To name a few, Flutterwave, Chippercash, and Fawry are among the top fintech startups creating value that comes with solving real problems within large user markets. The space also includes 'soonicorns', or companies that are on their way to becoming future unicorns, such as TeamApt, and Kuda Bank.