Are you interested in doing business in Africa? Are you an investor looking for business ideas in Africa to invest money in profitable business ventures? If so, find here a list of profitable businesses to start here in this continent with a small investment.
According to the SA’s Quarterly Financial Statistics (QFS) report, the trade sector is the largest player in the business landscape, contributing 36% to R2,3 trillion. Manufacturing takes second place, followed by business services. There are an estimated 650,000 small businesses in South Africa, employing around 7.8 million people.
Explore the below-mentioned business opportunity sectors listed below in this article to start a business in Africa.
List of Top 12 Business Ideas in Africa You Can Start in Small Scale
People in most African countries depend on farming for daily income. You can produce Carrots, Onions, Leeks, Tomatoes, Spinach, cucumbers, Cabbages, Garlic, Pumpkins, Capsicums, Lettuce, potatoes, sweet potatoes, etc and sell to the local marketplace.
#2. Real Estate
Real Estate market is on the rise in Africa. The subcontinent has a huge housing problem in all its urban areas. Other than normal housing business activity ideas like cement blocks making, stabilized earth bricks making unit are some of the business ventures you can explore here.
#3. Food Processing
The market for processed food is increasing in Africa. African people purchase lots of food items from foreign countries. any local entrepreneur can produce those items and sell to local customers. Food items like fruit Juice, Sausage, Meat Grinding, Soymilk, honey, poultry, etc can fetch good returns.
#4. Intellectual Property Services
As the African economy grows more Multinational organization will start investing in Africa. Small companies are bound to grow to support these large corporates. There would be a requirement of IP providing companies to structure and protect intellectual properties.
E-commerce activities are in the growing phase in Africa. The number of internet users in Africa is the second highest in the world only next to China. However, the most challenging aspect of e-commerce companies in the African continent is the lack of logistics facilities. Any company who will be successful in setting up a proper distribution network of delivering products will surely reap huge benefits as the market is very large.
This part of the world desperately needs a huge supply of power for development. However, the latest energy data shows that there will be a 50 % growth in the installed energy from 2018 to 2022 in the African continent. Though the main source for power generation in Africa is hydro-based, presently more and more thrust is given in gas, liquid fuel, and renewable energy sectors. Hence, investing in the energy sector is a potentially profitable option in Africa at present.
#7. ICT Services
There is tremendous scope for building a business in the field of information and communication support. Most African companies are desperately looking for investors in this field.
Lack of large-scale dependable logistics provider is a big problem in most African countries. This creates a huge business opportunity for investors in investing in the logistics sector.
#9. Data Collection Services
Every big organization depends on authentic data before deciding on any activity. Unfortunately, there are few valuable and structured data sources available in Africa.
International community hires an overseas consulting firm for data collection and spends a huge sum of money. This creates a huge business potential for African entrepreneurs having some expertise in data collection services.
#10. Manpower Recruitment
Finding suitable manpower is a big problem for companies working in this subcontinent. At present, there are few qualified recruitment companies in most African countries. Starting a recruitment firm and providing manpower is a very big business opportunity in Africa right now.
#11. Footwear Manufacturing
Still, most African countries largely depend on footwears imported from China. As an example, China exports approximately 90% of all the footwear imported into South Africa. If you are a startup entrepreneur in Africa, do seriously consider starting footwear manufacturing.
#12. Fruit Juice Production
Africa produces fruits in abundance. It is surprising the local demand for fresh juice consumption is met by importing from foreign countries. This is an area of opportunity where enterprising young individuals of African countries must explore.