If you dream of becoming your own boss and you are probably looking for the most lucrative business in Africa to invest in, we got you covered.
In this article, we will explore the top 5 most lucrative business in Africa and how you can take advantage of the available opportunities. This article is based on research, interviews, and experience.
Let’s dive in
Top 5 Most Lucrative Business in Africa
Agriculture is the most lucrative business in Africa. This is not debatable, from farming to processing and marketing, Agriculture present many investment opportunities for entrepreneurs.
As a guide, no matter your background, capital and education you can explore any business idea in Agriculture and become very successful.
Here’s the thing, in Africa, Agriculture is the way of life and thousands of entrepreneurs are secretly making millions from it.
Why Agricultural business is very attractive/profitable
i. It has a low start-up cost
ii. Everyone needs food to survive
iii. Anyone with the right knowledge and information can be successful
iv. You can start most of the businesses in Agriculture with little or no training
v. The return on investment is very high
“It is time to change the way we think. Farmers are not the cause of Africa’s poverty; they are a potential solution. They are key to creating the future envisioned by the SDGs.” — Kofi Annan
How to start Agricultural business in Africa.
If you want to invest in Agriculture, this is what you should do.
i. Identify an idea
Agriculture is a broad business, so most young entrepreneurs do not really know which part to invest in, some of them get confuse along the way and try to switch from one area to another in a bid to become successful overnight. But that’s not the way to do it.
The first thing you should do is to Identify a part of Agriculture you want to invest in early before any other thing.
ii. Do a market survey
After knowing your area of investment in Agriculture, do a market survey to understand the production and supply chain, the market value, market reaction of people toward your chosen idea, this will assist you in branding and development of winning marketing strategies
iii. Know your competitor
It’s very vital to know your competitors before starting the business, understand their strength, weakness, and explore their untapped market.
iv. Get More information on the idea.
At this stage, if you don’t know much about the business, you need to reach out, search and get more information on the business, you may not necessarily get all the information you need before you start but be sure to understand how the business works and prepare your mind toward it.
Put all your research to work and start building the business, it’s important that you don’t expect overnight success story, but give in your best and the success story will come.
Some Business Idea in Agriculture.
i. Pig Farming Business
Read: How to Start a Pig Farming Business in Africa
How to make millions in pig farming – The Anna Phosa story
Read: How to start a snail farming business in Africa
iii. Fish Farming
Read: How to start a fish farming business in Africa
iv. Processing and storage of Agricultural Product
v. Vegetable Farming
Example: Carrots, Spinach, Cabbages, Garlic, Pumpkins, Lettuce, potatoes, sweet potatoes, onions, cucumbers, etc
vii. Rabbit Farming
viii. Fruit Production
Examples: Tomatoes, Pineapples, Bananas, Mangos, Papaya, Passion fruits, Coconuts, Citrus Fruits,
ix. Soya bean Production
x. Maize Farming
xi. Cassava Production
xii. Poultry Farming
Financial Technology also known as Fintech are companies that provide technological solutions for the automation of financial services for businesses and People. Currently, Fintech is the most attractive tech startup sector in Africa.
Why starting a Fintech company is very attractive/profitable
i. It is Scalable
Fintech Company has the ability to handle a growing amount of demands in a way that accommodates growth and inspires productivity.
ii. Users availability
As more small businesses embrace the cashless economy, the demand for Fintech companies will keep rising.
Africa is blessed with talent and experts who can easily develop and transmit an idea into a solution machine
iv. There is a big opportunity for collaboration
“You have to, to serve these markets, re-imagine how money can be managed and moved because there’s going to be more change in the next five years in financial services than happened in the past 30.”
– Dan Schulman, CEO PayPal
If you want to invest in Fintech, this is what you should do.
i. Have an idea
Think of an online payment solution you can, research on it, and validate the idea
ii. Put up a team
Getting a good team from the beginning is very important. You need a developer, a business strategist, a marketing expert, etc depending on what your idea is attempting to solve
iii. Put up a project prototype
Starting a Fintech company is not cheap, you need to budget for office, facilities, marketing promotion and perhaps partnership. It’s good you have a project prototype plus a good business model that you can use it to source for funding
iv. Develop the project
v. Reach out for collaborations.
vi. Market the project.
3. Waste Management
Waste Management is one of the most lucrative businesses in Africa. With rapid urbanization and the increasing accumulation of waste, waste management business provides an important for entrepreneurs.
According to the World Bank Urban Development Series report, Africa currently produces up to 70 million tons of waste every year and there is a projection that it will reach 160 million tons by 2025.
If you want to invest in Waste Management, this is the area you can focus on.
i. Waste Collection
Many people and businesses are willing to pay for waste and refuse collectors. These demands will keep increasing as urbanization increases, so building a startup around waste collection will not just give money but will give you an opportunity to make a difference in life.
You need just 3 things: A truck, a driver and you need to register with the waste management board in your city
ii. Waste recycling
You can either venture into Inorganic Waste processing or organic waste production.
4. Urban Logistics
Urban logistics is one of the most thriving businesses in Africa. If you want to make money moving good and services, here are some ideas you should consider
i. Delivery service
ii. Cargo tracking
iii. vehicle towing service
iv. Courier service
v. Airport shuttle business
vi. Travel Agency, etc
5. Real Estate
Investing in real estate can be both satisfying and lucrative. Here’s is the thing, as long as people are constantly looking for accommodation, investors in real estate will keep getting good returns on their investment.
Here is what makes Real Estate Business interesting