Updated: Mar 22
Africa's conversation shifts from all times known for deficits and gaps to the land of opportunities, ventures, and creativity for prospects. This fact can be attested to by most companies who have paid close attention and invested. The population of young people is growing rapidly, and urbanization is expected to increase by more than 50 percent by 2050. Among other developments, these trends have driven enormous growth in Africa, and the position will continue.
It is now the best time for Africa's diaspora to invest in Africa. A report cited by the UN Trade and Development Conference states that Africa had the highest rate of return on foreign direct investment inflows between 2006 and 2011. A variety of variables drive the profit prospects of Africa, making it imperative for investors to invest, helping to promote the economic progress of the continent. Here are the top 10 sectors that should be considered when investing in the African diaspora.
1. Real estate and construction
Sub-Saharan Africa's commercial real estate development is booming. Rapid urbanization, a wealthier population, and a fast-growing middle class are creating great opportunities for investment in real estate.
As for those with long-term stability, real estate investments are worthwhile. To ensure that the property is legitimate, begin by purchasing raw land that requires a large amount of due diligence. Commercial developments for offices, apartments, or retail sites could be aware of your competition and the needs of the people around it.
2. Internet services
Africa is keeping up with the speed of modern ICT (Information and Communication Technology) accessed via computers and Internet connections. Investing in computer upgrade services for Africans living in the diaspora could be the right sector. Technology advances at a record pace.
Starting a company that specializes in replacing existing computer systems with modern internal and external equipment is a perfect start-up company that has great potential to gain an excellent income. At least $10,000 is needed for business capital.
3. Food processing
Most African countries are spending millions of US dollars on importing food goods that can be locally manufactured. For a rising population, in particular in urban areas, the demand for quality food is increasing. In the food industry market, the situation provides many business opportunities.
By starting a small food processing industry and producing value-added goods from cereals, grains, nuts, fruits, and vegetables, it is high time for the African Diaspora to exploit these business opportunities. Businesses in food processing include:
Maize milling plant
Coffee roasting plant
Dairy processing plant
Tomato paste and ketchup production unit
Water purification and bottling plant
Transport investment in 2020 reached US$ 69 billion, according to the GlobalData survey. In African cities, public transport has been a major challenge, especially because of the lack of adequate or efficient public transport services. It is very profitable to invest in the community transport market.
You can start a long-term and sustainable company by purchasing one bus or a fleet of buses. The transport sector in South Africa has been highlighted by the government as a key contributor to the competitiveness of the country in global markets.
Communication networks include organizations offering communications services mainly via a network of fixed-line, telephone, wireless, high bandwidth, and fiber optic cables.
The Internet has shocked the e-commerce industry. Despite the market competition stimulus, there have been significant prospects for communication services. Most mobile devices on smartphones are pricey and not everybody can afford them. It would be ideal to have a mobile shop which offers cheap phones.
Reliable and affordable energy is at the forefront of African efforts to fuel economic development and meet the needs of an increasingly urbanized population. With high prices, limited energy, and frequent power outages, many African nations struggle.
For instance, almost half of the population has no access to electricity in Nigeria and Liberia. This is an opportunity to diversify the investments made in power sources. Solar energy is cheap to invest in. Consequently, the market is untapped and underused.
7. Tourism and hospitality
As a tourism destination, East Africa has been rising steadily. There is an urgent need for world-class visitor facilities. The tourism industry is the second largest contributor to reserves in foreign currencies. By 2030, it is estimated that consumer spending on tourism and hospitality will hit around $261.77 billion. So, there are open options for new hotels, lodges, and leisure centers.
Without a doubt, Africa thrives on agriculture. Food demand is still going to be there and it's going to expand immensely. In Africa, no other field matches agriculture. Sixty percent of the world's arable land that is currently not under cultivation is found in Africa, according to the World Bank.
Agribusiness is now fashionable and cool. Agricultural entrepreneurship and commercial agriculture are becoming increasingly trendy as a result. Instead, most individuals miss work searches to develop agribusiness. Why don't you follow the trend?
Investment in the service sector in Africa holds immense economic promise. Almost half of the continent's production is contributed by the service sector, and several African countries have emerged as services-oriented economies. It is, moreover, a critical source of revenue and employment.
Within the services sector, there are some competitive emerging sub-sectors with the potential to generate growth, trade, and employment opportunities that have yet to be exploited. Investment in logistics and distribution, for example, maybe of great benefit to those in the agricultural and manufacturing sectors.
10. Startup Funding
Entrepreneurship activity on the continent of Africa has increased significantly. There is an opportunity for investment gains that cannot be overlooked. African tech startups raised funding of $560 million from local and foreign investors in 2017.
The size of venture capital investments that take place worldwide exceeds billions every year. To date, there are still prospects for more investors in Africa to look at young entrepreneurs and tap into lucrative deals for the industry.
For Africans who send money back home, it is high time to think, behave differently and start a process of investing remittances into companies that create employment and wealth. Through doing so, African migrant workers would not only make their families financially independent back home but will also effectively contribute to the continent's economic development. The eradication of poverty in African countries.