Top 10 Business Ideas and Opportunities In Africa That Will Make More Millionaires

top ten business opportunities in Africa that will made more millionaires Africa is a fast developing continent and many foreign investors understand that there is a lot of money to be made in Africa there are two exciting new trends that are unraveling before our eyes the first trend is the growing number of people from the US Europe China India in the Middle East who are flocking to Africa in search of a precious resource no they're not looking for crude oil mineral resources or commodities they're looking for something else that Africa has an abundance unique problems the second trend is the rising number of people on the continent who are creating new and innovative products and services that are starting to catch the world's attention and attracting millions of dollars from both local and international investors their secret they focus on solving Africa's unique problems hello viewers thanks for joining us once again our video today tells the exciting site of Africa's story that most of the world doesn't yet know if you're new to our channel welcome subscribe and turn on your notifications so you don't miss out on any of our exciting videos in today's video you will get a glimpse of ten of the most promising business opportunities in Africa that are creating wealth and jobs on the continent and will very likely make more millionaires in the coming years you will notice they all have one thing in common they focus exclusively on solving problems the new world wealth reveals there are now just over 160,000 millionaires in Africa interestingly from 2000 to 2013 the number of millionaires on the continent grew by more than 145 percent compared to the worldwide growth rate of 73 percent in recent years most of the new millionaires have been young entrepreneurs and investors who have created promising businesses and invested in lucrative sectors of Africa's fast-growing economies there are currently many business opportunities in Africa but our top ten today are those that really stand out and not in any particular order these are our top 10 business opportunities in Africa that will make more millionaires in the coming years number one crowd farming across the world agriculture is big business and most farmers are financially well-off but not yet in Africa a according to the United Nations Africa's agric business industry is expected to be worth one trillion dollars by 2030 this makes perfect sense as the continent has a huge domestic market owned 60% of the world's unused arable land and has abundant labour resources and a favorable climate in most parts still Africa spends over 30 billion dollars on food imports annually a big part of the problem is most of Africa's food is still produced by smallholder farmers in rural areas they are largely poor people who use crude farming methods and have very limited access to capital but what if all of us in the cities pool funds together invest in these rural farmers and take a share of the profits at harvest time wouldn't that significantly boost food production cut down the continents food import bill and make more money for both the investors in the farmers this business model is called crowd farming and it's a trend that could totally transform the face of a great business in Africa in Nigeria - crowd farming platforms farm crowd E and thrive agric enable working-class Nigerians to crowd sponsor farming projects and earn a share in the returns at harvest time last year farm crowd e raised 1 million dollars from US investors to expand its operations in Somalia re farm is an online marketplace and crowd farming platform that enables investors from across the world to play in the Somali livestock market in South Africa livestock wealth helps investors to own pregnant cows and track them through a mobile app once the calf reaches 7 months it is sold to a feed lador slaughterhouse and the return for the beef goes to the investors as Africa's population doubles over the next 30 years the business opportunities in Africa is a great business space are very likely to produce a league of millionaires who made their money while pulling thousands of farmers out of poverty number two branding local products for export Africa spends billions of dollars on imports every year this includes both food and non-food items but beyond the traditional commodities crude oil minerals cocoa coffee timber etc what else of value can Africa actually export it happens there are a lot of local products on the continent that have the potential to become global brands the problem is we often overlook or look down on them but a few interesting entrepreneurs are now turning local African products into global brands and best sellers by focusing on made in Africa organic chocolate bars made from cocoa beans which are harvested and processed in Ghana fair Afric is targeting ethically conscious consumers in Europe with its impressive range of organic chocolate brands in 2018 alone the business made and exported over 250,000 chocolate bars and raised about 50 thousand euros from investors on Kickstarter the same change is coming to African coffee too for a continent that produces over 70% of cocoa beans used in chocolate and roughly 11 percent of coffee beans Africa has a unique opportunity to create strong product brands that can attract premium prices from foreign consumers on top of that thousands of jobs and small businesses will be created and supported by adding value to raw commodities like cocoa and coffee beans but cocoa and coffee are only the beginning of a much bigger wave of emerging business opportunities in Africa for value-added food exports melodica is another example a rare type of shea butter that is used in luxury beauty products sold around the world the trees that produce this butter only grow at the source of the Nile River in northern Uganda South Sudan and Ethiopia by working with local women in the region to process the butter Leila janah an American entrepreneur has built LX mi a luxury beauty brand with a range of skincare products that sell in over 300 beauty stores across the world fair African melodica are only just two examples of several local African products that have global potential in the coming years more smart entrepreneurs will carve niches for themselves by exploring these products and transforming them into international brands number three affordable housing Africa is experiencing the world's highest trade of rural to urban migration and by 2030 it is projected that up to 50% of the continents population could be living in towns and cities urbanization is great but where will all these people live and even if the governments tried they cannot build homes fast enough to meet the teaming demand for accommodation in Nigeria Africa's most populous country the housing deficit is estimated at 20 million homes in South Africa the deficit stands at 2.3 million homes Africa's housing crisis opens a lot of interesting opportunities for several industries from cement production and furniture making to building contractors and mortgages it's no surprise Africa's richest man Alico tangata has expanded his presence in cement production across several countries on the continent his interests in cement now make up a significant portion of his net worth but beyond conventional housing there is an interesting trend of homes being built from cheap and durable alternatives like shipping containers in Kenya entrepreneurs like Denise majani are also converting shipping containers into amazingly creative residential and office accommodation at half the price of contemporary housing in Cape Town South Africa building contractors like Berman Cowell are offering sustainable and affordable housing options by converting decommissioned shipping containers into low-cost homes these alternative options are significantly cutting down the cost of building homes making them affordable to a larger segment of the population so far most of Africa's housing developments have focused on the premium and elite segment of the market while the large margins from this segment have been very lucrative for investors the biggest opportunities will emerge from providing housing at scale and at affordable prices number four virtual education there is a trend of academic inflation currently happening across Africa to compete for job opportunities Africans in the labor market are investing in higher or specialized academic degrees diplomas and certifications in order to make their Seavey's more impressive and boost their chances of employment promotion and career progression learning institutions outside Africa are also benefitting from the explosion and demand for hire and specialist education the top destinations are universities in North America Europe and Australia academic degrees from the US and UK now cost Africans an average of up to $50,000 worse still the overwhelming demand for higher education in Africa has now led to a string of fake universities in Europe and America that are involved in an elaborate multi-million dollar scam of offering admission for non accredited courses degrees and programs while the demand side for quality higher education in Africa has dramatically evolved the supply side largely remains as it's been for more than 40 years the truth is the traditional business model of sprawling location-based and come to us if you want to learn university campuses can no longer match the current growth and sophistication of demand for higher education on the continent people want flexible learning options that allow them work learn and earn all at the same time Africa's higher education systems are ripe for disruption and there are already a few interesting entrepreneurs investors and players leading the charge the African virtual University is a trailblazer disrupting the conventional model of higher education on the continent in partnership with universities within and outside Africa the intergovernmental organization has already trained 43,000 students using its virtual online platforms by the year 2040 PwC estimates that Africa will have the world's largest labor force ahead of both India and China to address the current and future skills shortages in this market smart entrepreneurs and investors are cornering a potentially lucrative market by focusing on flexible and scalable business models that are cost-effective yet profitable the growth in the virtual education space will be one of the most interesting business opportunities in Africa to watch in the coming years number five outsourcing Business Process Outsourcing is now a huge multibillion-dollar transnational industry that is expected to reach fifty two billion dollars in market size by 2023 growing at an average rate of 11% per year the rising dominance of e-commerce and the digital economy is leading companies to demand for more data real-time services and a presence across multiple platforms as a result more companies are outsourcing their accounting data processing customer service human talent and supply chain needs while India and the Philippines have benefited from the explosion of an outsourcing demand in the USA and UK Africa has become the big player in Business Process Outsourcing for the global francophone market the number of Business Process Outsourcing companies in Morocco Tunisia Senegal Mauritius and Madagascar continues to skyrocket in Morocco the Business Process Outsourcing market leader in Africa the industry employs over 70,000 people more Business Process Outsourcing are setting up shop on African soil for a variety of reasons the lower cost advantage of running these centers in Africa means that companies can be more competitive and profitable also internet speeds in places like Madagascar are faster than in several developed countries thereby significantly improving the quality of service in Kenya Business Process Outsourcing firms like sama sirs use local tech savvy Africans to support some of the big names in Silicon Valley such as Google Microsoft and Yahoo in their artificial intelligence efforts as the global digital economy expands Africa's large pool of young tech-savvy English and French speakers offers a major attraction and promising opportunity for global business process outsourcing firms looking to serve the growing outsourcing demand from clients in North America and Europe the outsourcing space will surely be one of the top business opportunities in Africa to watch in the coming years number six fashion and apparel fashion is a two point four trillion dollars global industry but Africa currently only owns a very thin slice of it the global fashion industry has a vast and complex value chain that stretches from the farmers who grow cotton silk and other natural fibers to the massive production factories in Asia that spin the fibers into a wide range of textiles the chain stretches further to the armies of workers and garment factories scattered across Asia and South America who convert textiles into a wide range of apparel stocked by mass merchandised chains around the world and high street retail stores in New York London Paris and Milan thankfully some creative entrepreneurs are starting to squeeze out some space for Africa in this vast and lucrative global chain in the coming years two significant opportunities in the global fashion value chain will further open up to entrepreneurs and investors in Africa who are keen for a bigger share of this massive industry the first opportunity is in apparel production with rising labor costs in China and parts of Southeast Asia forcing more factories to seek alternative locations in Africa where labor is cheaper several apparel producers are already setting up shop on the continent among companies like H&M and Primark that are now sourcing from Africa you Aegean one of China's largest shoe manufacturers is expanding in Ethiopia and in East Africa also specialist apparel producers like C&H garment factory in Rwanda are producing uniforms safety vests and military kits that are exported to Europe in the USA while the influx of Asian apparel producers to Africa is likely to have an impact on the continents indigenous textile industry the potential of these massive factories to create large-scale jobs earn export income and encourage the growth of supporting industries will likely create big opportunities for local entrepreneurs the second opportunity that stares in Africa's face is fashion design and retail a growing number of brilliant and creative fashion designers is emerging from the continent and the world is starting to take notice African fashion labels like Senegal's Tong Goro by Sarah deve are attracting international celebrities and customer bases outside the continent in places like Europe and North America and recently Mike the global sportswear giant collaborated with a local Nigerian designer for a special edition Jersey that was inspired by a Dyer a traditional print from Nigeria the design sold out within 14 hours after it was released on Mike's web site with a growing global curiosity and appetite for exotic and refreshing fashion designs from Africa the continents fashion designers and entrepreneur have a massive market and untapped global audience to serve there are vast opportunities in potential partnerships with big and established fashion brands distribution Arrangements ecommerce possibilities and artisanal and exotic fashion pieces on top of these international opportunities there is a growing domestic market of over 600 million young and fashionable Africans who now take pride in wearing locally inspired fashion the African Development Bank estimates that Africa's local fashion industry has the potential to be worth fifteen point five billion dollars over the next five years this clearly makes it one of the most promising business opportunities in Africa to watch number seven urban logistics the future of Africa is in the cities and by 2030 up to half of the continents 1.4 billion people will be located in the cities currently about 60 African cities have a population of over 1 million people at the top of the pack are cities like Lagos 21 million Kinshasa 10 million and Cairo 9.5 million and one of the biggest problems that appears to be worsening with the growth of Africa's urban populations is congestion most cities on the continent do not yet of well diversified transport systems so getting around town can be a very frustrating endeavor it's a logistical nightmare that worries both consumers and businesses thankfully some African entrepreneurs are already hacking this problem in Kenya twig of Foods uses technology to pool the orders of several urban retailers saving them a trip to the market by delivering to their doorstep it is now the largest distributor of a number of basic food staples in Kenya and the startup raised ten point three million dollars last year in Nigeria max is a fast-growing startup that provides last mile delivery services last year it launched an on-demand motorcycle courier service for clients who have critical deliveries that need to beat the notorious congestion on Lagos roads as we go into the future more entrepreneurs will figure out ways to outsmart the complex problems and frustrating challenges of logistics in urban areas in the coming years urban logistics will likely remain one of the most promising emerging business opportunities in Africa number eight digital financial services no other emerging industry in Africa is attracting as much international capital and backing like digital financial services popularly known as fin tech last year fin tech startups in Africa raised two hundred eighty four point six million dollars from investors almost half of all the funding raised by African tech startups in the whole year it's hardly surprising why there is a gold rush in Africa's fin tech industry over sixty percent of Africa's adult population is unbanked up to three hundred fifty million of them own and use phones but fewer own a bank account or have access to formal financial services that's a huge market indeed by using mobile phones in the internet fin tech entrepreneurs across the continent are deepening Financial Inclusion and unlocking incredible market opportunities in financial services and the opportunities range from processing payments and money transfers to savings and access to credit current estimates project that over the next three years Africa's fin tech industry will grow by at least 40 billion dollars and contribute up to 150 billion dollars to Africa's GDP by 2020 it's this huge market potential that's making investors fall over themselves to invest in African fin tech companies in the last 12 months to fin tech startups from Kenya branch and Tala raised 135 million dollars in Nigeria four companies sell Uhland paga pay stack and Lidia attracted a total of 70 2.4 million dollars and from South Africa jumo and Yoko received sixty eight million dollars these are only the headliners several other fin tech startups like Tunisia's expense you in Nigeria's piggy bank among others raised lower amounts that were still impressive while the amount of capital that's flowing into African fin tech startups may be impressive its who these funds are coming from that's even much more impressive for example stripe and visa to global payments Giants were part of the investment deal in pay stack a promising three year old Nigerian digital payments startup other interesting investors in this emerging industry include Goldman Sachs Y Combinator partic amid your network and China's Tencent as the fever for FinTech in Africa continues to grip local and international investors the industry will very likely remain one of the most lucrative business and investment opportunities in Africa to watch in the coming years number nine low-cost private schools according to the report titled the business of education in Africa it is estimated that one in four African students a total of 66 million will be enrolled in private schools by the year 2021 rapid population growth poor funding corruption and neglect have caused a serious deterioration in the quality of education in public schools on the continent as a result more African parents are looking to private schools to ensure their kids get a good education and the demand for this alternative is skyrocketing for example in Nigeria the number of low-cost private schools in Lagos its commercial capital is estimated to be as high as 18,000 by comparison in 2010-11 the city had just 1,600 government schools and this trend of low-cost private education is leading entrepreneurs to come up with several interesting models in Tanzania the Silverleaf Academy is a chain of low-cost private primary schools that charge a daily school fee of 1.5 dollars the school uses a technology based approach and offers a curriculum taught by internally trained teachers in Nigeria the Leckie Peninsula affordable schools is a stand-alone low-cost school that charges an average annual fee of $125 the school has received up to $75,000 in funding from village capital and Pierson affordable learning has more players enter the low-cost private education space on the continent I suspect the fierce competition will improve the quality of education drive down school fees and afford many children the chance of a decent education rather than set up exclusive private schools for the elite who says entrepreneurs can't make good returns and find tons of fulfilment and educating children on Moss number 10 off-grid solar while policymakers in Europe and North America debate about the most fitting energy transition strategy for their countries Africa presents a clean and open slate for renewable energy especially solar the race to spread solar power across Africa is now a multi-billion dollar industry that continues to attract entrepreneurs and investors from within and outside the continent what makes Solar one of the most attractive business opportunities in Africa right now is the significant potential for off-grid solar solutions and the demand is massive over 600 million Africans are tired of waiting for energy from centrally managed power grids that are slow to deploy inefficient and inflexible to the continents growing power needs and on a continent that enjoys over 300 days of sunlight in many parts it's hard to beat the value proposition of a product that bypasses the central power grid and meets your energy needs by tapping directly from the Sun a free energy source that's why the solar market in Africa has exploded and the number of players in this space continues to grow last year Bibi oxx a solar systems developer signed a landmark deal with the government of Democratic Republic of Congo to deploy off-grid solar kits and mini grids to 2.5 million citizens in the Democratic Republic of Congo it is estimated that over 60 million people are still not connected to the grid in Togo the company has also entered a four million dollars partnership deal with the government to supply three hundred thousand homes with off-grid solar kits so far bibi oxx has raised more than 66 million dollars from investors to increase its footprint across africa but this is just one company there are several others and this is only the beginning of a big party that is far from getting started as the continent that emits the lowest levels of co2 but has the most to lose from climate change africa's solar entrepreneurs will benefit immensely from funds like the World Bank's 200 billion dollars Climate Action Fund and funds from the private sector like shells 1 billion dollars annual budget for clean energy has more funds and players try to serve Africa's massive demand for off-grid solar solutions this will surely be an exciting industry to watch there you have it viewers those were our top ten business opportunities in Africa that will made more millionaires in the coming years it is now abundantly clear that entrepreneurship holds the keys to Africa's transformation not global pity and certainly not foreign aid do you know about other hot business opportunities which wasn't mentioned in this video share this information in our comments section and let's discuss together if you found this video useful share it with friend on social media and don't forget to subscribe to our channel so you don't miss out on any of our future videos you

Channel: The New Africa Channel

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Keywords: business ideas in africa, business ideas, business in africa, small business ideas africa, small manufacturing business ideas in africa, manufacturing opportunities in africa, fastest growing industries in africa, business opportunities in africa 2020, best business opportunities in africa, business opportunities in south africa, successful business ideas in kenya, Business Opportunities In Africa, agriculture business ideas in africa, africa business opportunities, africa etf

Id: Zuq8Hsdt3SI

Length: 24min 48sec (1488 seconds)

Published: Thu Jun 25 2020