Africa is a fertile ground for various types of investment. Smart investors are trooping to Africa to harness some of the investment opportunities. About a decade ago, many investors thought that BRIC countries; Brazil, Russia, India, and China were the next El Dorado.
However, many years down the line, some of these investors were disappointed either by the significant hurdles to entry or the slow pace of their economic growth. The black continent is booming and the potentials to succeed are very high.
It offers a lot of investment opportunities for investors. Some giant brands like Coca Cola and Heineken have made awesome business mark on the continent, and this has generated multiple positive returns on investment.
According to a recent World Bank report, agribusiness in Africa is valued at $1 trillion by 2030. About 60% of lands in Africa are still uncultivated, and the Agric industry is set to overtake metals and mining in the nearest future.
Investors will generate a high return on investment when they invest in multiple food crops such as edible oils, livestock, plantains, beans, corn, sweet potatoes, cassava, groundnut, sorghum, millet and lots more.
Rural to urban migration is growing in a consistent consistency. According to a recent publication by African Development Bank, from 1950 to date, rural to urban migration has increased from 14% to 40%.
Expectedly, this figure is set to reach 50% by the year 2030. Thus, because of this, there is a high demand for transportation systems in most metropolitan cities in Africa, and the supply is considerably low.
Many entrepreneurs are earning thousands of dollars in recurring income monthly in the transportation sector. Many innovative investors are now harnessing the potentials that come with urban transportation. The arrival of Uber to the African market opened doors to a lot of possibilities; comfortable ride, affordability, and convenience. These have also built a loyal clientele. With Uber and Pre-Bus (in Nairobi, Kenya) platforms, people can book their bus tickets by a simple click on their mobile devices.
- Real Estate
Due to the high influx of rural to urban migration which is currently prevalent in African soil. The price for rent is high too to the extent that most African countries are unable to meet with the demands of affordable housing for all their citizens.
Thus, investment in real estate is yielding a high return on investment. World Bank estimates that by the year 2030, about 40% of the world’s population, 3 billion people will need new housing units. Another study says that this figure will skyrocket to about 1.2 billion by the year 2050.
- Low Cost, High-Quality Private Schools
The quality of education in public schools in many African countries is daily deteriorating geometrically. This is a result of several factors such as increased population, funding, poor education standard, hiring unqualified and de-motivated teachers, corruption and many more.
To ensure their children get quality education, most parents are opting for affordable private schools with class. Thus, establishing low cost, private schools in Africa is a reliable investment option many entrepreneurs are today taking advantage of, and really it is generating a high return on their investments. Invest in this opportunity and you will be happy smiling to the bank.
- Waste Management
Waste management is another lucrative investment offer. Many entrepreneurs are already reaping high dividends on this. Waste has been a big problem for most African countries. In some of these countries, wastes are buried, openly disposed or burned. An avid waste management entrepreneur can create a fortune by going into the waste recycling business.
It is a goldmine to invest in Africa today!
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