Africa is one of the most rapidly expanding markets due to its expanding economy, industries, and demographics. Countries such as Nigeria, Angola, and South Africa are undergoing staggering economic growth while working in these industries and sectors. Agriculture, telecommunications, banking, infrastructure, and oil and gas are among the top markets in Africa.
Although Africa’s growth prospects are promising, they differ from one country to the next and from one sector to the next. This blog will look at the possibilities for a few industries. Over 200 million Africans have entered the banking and telecommunications industries. As a result, the growth ratio increased significantly.
Africa has more than one-quarter of the world’s arable land. Eleven African countries are among the top ten suppliers of minerals. According to experts, future investment opportunities in Africa are promising.
Since Africa’s economy has grown at a breakneck pace, there has been a significant shift from mining and agriculture to industries such as wholesale, retail commerce, tourism, and communication. The continent has begun to shift from a traditional to a knowledge-based economy, wherein digital technology, eCommerce, banking, and other services will play a significant role soon.
What are the top sectors and markets in Africa?
High growth rates, impressive profitability, and minimal consolidation define Africa’s fastest-growing industries. Without individual sector resilience, the continent is becoming self-sufficient. So, if you want to make wise investment decisions, you should learn about the region’s fastest-growing industries, which include:
Banking and finance industry
In the last few decades, the banking industry has grown rapidly. It has evolved from a western lampooner to a well-established vertical, contributing significantly to Africa’s growing economy. For Africans and businesses of all sizes, the banking and financial sector has been a vital source of employment. This sector provides promising opportunities for foreign investors.
Telecommunication and Information & Technology (I.T.) sector
This sector has seen a dramatic turnaround, ushering in a new era for Africa’s economy. The telecommunications and information technology industries have become highly competitive, with only the best surviving. On the African continent, there are over 600 million telecom subscribers. As a result, it has enabled online business merchants to thrive and excel in their respective niches. Money is invested in the telecom sector in response to rising demand.
Transport and logistics
The African government has significantly invested in modern and comprehensive transportation infrastructure in recent years. The majority of these funding initiatives aim to promote more widespread economic development. The continent offers services provided by giant players with the country’s leading logistics providers, such as Transnet, Spoornet, Portnet, AutoNet, and others. For example, South African Airways (SAA), the government-owned national airline carrier, provides air transportation and shipping services to over 700 destinations worldwide. Although SAA and Transnet dominate the industry, Africa has many international and local logistics business opportunities. Furthermore, the market can help all other available and interested investors.
In 2015, the mining industry experienced a brief period of stagnation. Government plans to increase GDP contribution to up to 30% in the next 15 years have diversified this sector’s untapped potential. Gabon is Africa’s fourth-largest manganese producer, with 150 million tonnes of reserves and 1.8 million tonnes produced in 2015. The country possesses more than 2 billion tonnes of iron ore, more than 40 tonnes of proven gold reserves, and a variety of rare-earth minerals such as lead, zinc, copper, diamonds, niobium, and titanium. As a result, it provides investment opportunities for foreign investors.
Agriculture and agro-processing industry
Agriculture has long been a dominant industry in Africa. Investment opportunities abound in both mainstream agriculture and agro-processing, have significant growth potential, and both domains substantially impact each other. The Republic of Benin, for example, is a considerable producer of cash crops to help Africa’s economic growth.
With the growing number of pharmaceutical companies producing generic medicines, these companies are likely to invest in the country. After all, public health services serve about 85% of Africa’s population. As a result, it is reasonable to assume that the general public would gladly sign up for the National Health Insurance Plan in order to obtain cheaper medicines and treatment facilities.
Let’s help you recognise the top markets in Africa to invest in
While sectors such as banking and finance continue to be essential drivers of Africa’s economic development, new-age domains such as I.T. and telecom are increasingly important in Africa. Furthermore, with the pandemic reinforcing the importance of modernising healthcare and logistics, growth opportunities are virtually limitless. Other active players in Africa include the real estate industry, the fashion industry, the automobile industry, and the insurance industry. As a result, if you are a wise investor, this is your golden opportunity to make a fortune in one of Africa’s fastest-growing industries.Do you have a strategy for investing in African markets? Allow us to assist you with appropriate, insight-driven advice. Contact the Survey54 team today for actionable insights that protect you and your investments.