Top 8 Business Investment Opportunities In Africa

Taking business advice from experts, the number 1 thing the advice on is investing in business opportunities. As good as it may sound there are some businesses we should avoid investing and there is someone should never miss investing on.

There are so many new opportunities to invest in the African market, due to Africa being richly blessed with Natural resources and having a fertile soil that makes almost every natural plant, it is always advisable to invest there.

When you invest in African resources, you are guaranteed to make a lot of money in the long run, you need to understand that as good investing in Africa sounds, there are some sectors that will give you a better result than the others.

Below are the top 8 sectors I would highly recommend anyone invest in in order to have a better chance of making the best out of it.

Top Business Investment Opportunities In Africa

Here are the top 8 business opportunities you should invest in Africa that are sure to make you a lot. These investments are very good in such a way it lasts for generations.

1. Invest In Rwanda’s Banking and Financial Sector

This is due to the fact that fewer than 20% of the adult population of the nation has access to financial services or a bank account. Nevertheless, the sector has come a long way in upgrading its offerings.

The sector is liquid, profitable, well-capitalized, and steady. The Development Bank of Rwanda, the Central Bank, and commercial banks make up the subsector.

As an investor in the banking industry, the main challenges you will encounter are limited credit availability, high loan interest rates, and the short-term nature of the majority of loans. However, you should take into account a lot of investment prospects in the banking industry.

2. Invest In Building and Real Estate

Attracting foreign real estate developers, Rwanda is currently expanding its real estate investment potential. According to statistics from Rwanda’s National Bank, the nation needs to construct about 25,000 new homes each year to meet the demand for urban housing.

To clear the backlog and grow the city, the City of Kigali is encouraging the construction of housing projects. Real estate investors have the chance to purchase confiscated land and build homes for low- to middle-income families.

3. Invest In Handmade Items

Selling DIY goods is a terrific business option to monetize your creativity if you always enjoyed constructing and producing things as a child. There is a method to make it happen even if you have the desire to create something new but lack the necessary skills.

Consider Josh Pigford, the creator of the SaaS business Bare metrics and the handmade home goods online store Cedar + Sail.

What began as a part-time side hobby swiftly developed into a lucrative internet business chance to unleash his creative side and market handmade goods.

Josh explains, “I started playing around with some concepts for concrete planters—the kind of item that can contain succulents and air plants—because I’m a sucker for little things that sit on side tables and desks.

“I was good to go once I quickly found out how to make the silicon moulds I’d need to pour the concrete in. About a month after I had the concept to create these tiny planters, Cedar + Sail was established.

Look around your own home to begin if you are unsure of what to sell. Does it have a concrete pot? colorful handmade bed linens? To find out what’s selling, conduct some research online.

4. Invest In Banking and Accounting

Accounting may be an excellent fit for you if you are good with numbers. Depending on your state’s regulations, all that is needed for a career in accounting or a similar field is a license and a computer. The CPA, or certified public accountant, designation is the one that accountants use most frequently.

A degree in accounting, finance, business management, or a similar field is often required of an accountant. Higher-educated accountants can charge more and offer more valuable services like financial analysis and consulting.

However, simple jobs like filing taxes, keeping track of books, and processing payroll don’t need a formal college degree.

You can hire more staff as your company expands, but doing so will reduce your profit margin. However, everyone must file taxes, and accounting and bookkeeping are necessities for all organizations. A high-quality service will always be in demand if you can deliver it.

 

5. Invest In SMME Funding

In Rwanda, small and medium-sized businesses are driving economic growth and job creation. These businesses can expand, make more money, and access national and international markets if the business environment is strengthened.

This untapped potential gives financial institutions with experience in SME financings, like private equity and venture capital funds, investment options to expand this firm category’s access to capital.

6. Computer and Internet Services

The nation is shifting from relying on agriculture for survival to utilizing ICT to create a knowledge-based economy.

Within the next two years, the government will provide fiber-optic internet connectivity at high speeds in every school.

Rwanda, which is laying a cable across the country and has two fiber-optic rings around Kigali, wants to be the information-technology hub for the resource-rich countries of Eastern and Central Africa.

Internet and computer services offer business prospects, particularly in internet cafés, call centers, computer consulting, hardware resale, etc.

7. Invest In Mining Industry

The mining industry in Rwanda has lately grown, and export revenue topped US$225 in 2014. Tin stone, tantalite (Colten), wolfram, and trace amounts of gold are the main minerals mined. Small-scale artisanal miners and the private sector are the major stakeholders in the mining industry.

The private sector is acknowledged by the Rwandan government as being a pioneer in economic growth and wealth creation.

As a result, privatization is a crucial component of the government’s efforts to restructure and rebuild the economy. Following the government’s decision to privatize mineral concessions, a number of notable players—mostly from foreign corporations—have entered the mining industry for both exploration and exploitation.

The government of Rwanda’s involvement in exploratory activities in potential target areas to produce useful geology data for use by mineral exploration corporations created the opportunity for exploration.

The businesses engaged in extensive, current, and thorough mineral prospecting. The goal of exploration is to make it possible to define and estimate mineral resources.

The chance to use the minerals is made available to capable individuals with shown technical expertise and financial capacity, not just firms, in accordance with Rwanda’s mining laws.

The right to use artisanal, small-scale, and large-scale mining is provided by the legislation. The exploited mineral compounds are traded by licensees for mining and mineral trading as well as owners of smelting and screening businesses.

The good news is that transactions involving minerals like tantalite and niobium must have at least 30% value-added. Low degrees of exploration and exploitation is conducted for precious minerals like gemstones. As a result, there are now prospects to set up rock cutting and polishing.

8. Invest In Facilities and Storage

Less manual labor is needed yet more money is needed for storage facilities. Real estate property prices might make a storage facility a five-figure investment or a multimillion-dollar business depending on where you live and invest. For instance, in Manhattan, Kansas real estate is significantly less expensive than in Manhattan, New York.

But there is hardly any labor or training needed for storage facilities. You simply need someone to manage the leasing, basic client relations, property maintenance, and tenant issues like evictions. Most of the time, people pay you for the privilege of letting their property sit there.

Work with a reputable commercial real estate agent to launch this kind of enterprise. Online searches for properties for sale are also available. Investing in a real estate investment trust (REIT) can help you get started at a cheaper entry cost if you don’t want to put in the effort to invest directly.

Bottom Line

These are the opportunity in the African market anyone can invest in and be sure to make a lot of money. Since Africa is just a new market, you are sure to have a long time income that may last for many generations to come meaning that even after 100 years you will still be making a lot of money.

Leave a Comment