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Opportunities for Investment in Africa

Posted on 24 April 2018 by admin (0)

“Inside of every problem lies an opportunity”- Robert Kiyosaki

Just like every other continent around the globe, Africa has her own share of problems stemming from various issues like corruption and poor governance. However, while a lot of investors are scared to invest their capital in African markets because of these reasons, there are others who are making good profits off the markets in African economies. This is particularly applicable to the emerging markets in developing countries. The challenges are all sources of immense opportunities for making investments which will bring very strong returns. Below are some of the industries in African markets that are ripe for the taking.

  1. Tourism: A lot of African Countries are naturally endowed with beautiful landscapes and natural monuments. Wildlife parks with exotic and graceful wild animals with species that can be rarely found anywhere else; waterfalls and various other attractions. Also, these tourist centers have been attracting tourists from all over the world and is a thriving business. For example, South Africa, one of Africa’s tourist hubs, recorded a visit of 15.52 million tourists in the year 2016, for 2017, an estimated 16.2 million tourists visited, while 2018 has forecasts of reaching 16.75 million visitors. It is obvious that this industry is waiting to be tapped into with handsome rewards for investors.
  2. Agriculture: This is another sector with huge possibilities for investments. A lot of African countries; especially Eastern and Western Africa; have highly arable lands on which a large variety of crops thrive well. Apart from just the production of crops, African farms also produce livestock and poultry products that are very viable and attract handsome prices. However, this industry has remained underutilized due to the slow advance of agricultural technology in these countries. The bulk of farmers still practice subsistence farming, and this greatly hampers the amount of profits being made. Investors willing to take the risks of investing in high tech agricultural equipment stand to make great gains from the African Agricultural sector.
  3. Power: A host of countries within the African continent have been unable to find long term solutions to the incessant power failures experienced by their citizens. This has held back industrialization and has negatively impacted their economies as most industries have to source for energy through more expensive avenues. While this might appear a humongous challenge and a highly risky investment, the fact remains that an investment into any project that can successfully solve the power problems faced by many African countries is sure to bring good returns.
  4. Mining and Solid Minerals: This is an industry that has been yielding impressive profits all over the continent, and will most likely continue to do so. Most African countries are endowed with various mineral resources. Some countries like Nigeria and Angola too also have thriving oil and gas sectors which investors have found very attractive.

 

Africa is an interesting and encouraging continent with which to do businesses. While there are peculiar challenges and risks, carrying out proper research and background checks, and working with highly reputable firms and individuals will go a long way in assisting to protect your investments and return good profits in the long run.