The countries of Africa have proven to have some of the most resilient economies in the world. These countries have emerging markets and demand has been increasing for infrastructure and other industries. You may wonder, in which sector should you invest in Africa?
There are 52 different economies within Africa that offer numerous opportunities in different fields with the many resources they offer.
There are four main sectors that offer major returns for investments.
Because the population and landmass of Africa are so large there must be an affordable and reliable source of energy. The world population is only growing which means that Africa could rise to the challenge and provide more agriculture and food for the world.
The development of this energy will only promote more economic growth. Countries in Africa are becoming more and more urbanized, and there is a growing high need for reliable electricity to light and power homes. For example, the country of Liberia has very little access to electricity in homes, but there are six major rivers that run through it.
Investment in hydro-electricity in this country would be a major boon for both inhabitants and investors. Another investment opportunity would be solar power and geothermal power, both of which are underinvested in by governments. This is despite the fact that Africa contains over 50% of the world’s potential for renewable energy.
If someone could recognize the amazing potential that energy offers, there is so much profit to be made and so much good that can be done for the African people.
Agriculture is the best way to invest in Africa.
Over 50% of the whole world’s land that is suitable for farming and agriculture is located in Africa. The continent has land, natural resources, and water that has not yet been efficiently utilized. In the future, the agriculture sector is expected to grow exponentially.
Some countries are already beginning to put a higher focus on farming and agro-processing, one of them being Uganda. Uganda is exporting massive amounts of tobacco, coffee, and fish.
Ethiopia is another country that is poised to profit from agriculture– it has some of the most arable lands on the planet. As technology moves forward the scope of what African countries can do with their land only widens. Mobile applications and increased connectivity between towns and cities allow farmers in Africa to band together and make larger profits than they would alone.
As Africa becomes more and more developed, growing towns and cities have a clear need for better infrastructure. It does not only affect individual countries but the entire continent.
Countries like Egypt have made a good process in infrastructure because the government has enacted important reforms and focused on the necessity of infrastructure. It was ranked 7th in the world as a country with attractive investment opportunities.
Other countries could exhibit this type of growth as well. Tourism and general economic activity could also improve with increased investment in African countries.
Countries like Tanzania, Mauritius, Seychelles, and Kenya have become extremely popular tourist destinations. In 2010 49 million tourists came to Africa, and in 2012 that number exceeded 50 million.
Luxury safari tours retreat on the coast, and hikes are all opportunities for investment that would yield incredible returns. In Uganda, Lake Victoria remains undeveloped. Other bodies of water could create spaces for boat cruises or boating tours, and the sky could soon be filled with hot air balloons.
The landscape of the African continent is rich and beautiful, and interest in African countries is growing, so there is no reason not to invest.
I hope you choose the best way to invest in Africa. If you have any idea or questions related to this topic feel free to drop a comment below.