Becoming his boss and starting his own business that “easily” generates money is every entrepreneur’s dream. The new millionaires in recent years have been young entrepreneurs and investors in lucrative industries and often generating profits like precipitation.
Over 160,000 millionaires in Africa
According to the New World Wealth Africa report, there are now over 160,000 millionaires in Africa. This is an indication of Africa’s future place as a new hub of the world, considering also that the world growth rate in terms of millionaire numbers is 73%, compared to 145% for Africa.
Africa is therefore the continent to which all eyes are turned because of its diverse natural wealth and human resources: a large economic market. This is a boon for potential investors; because for “a few dollars” they could set up their business. It will be inspiring to tropicalize certain successful business models around the world, because doing business and being successful in Africa is not easy.
What are the most profitable businesses on the West African coast?
Here are some of the most profitable sectors in West Africa:
It represents a veritable untapped African gold mine, the potential value of which is estimated at millions of dollars. This industry is estimated to be worth a trillion dollars by 2030.
Africa south of the Sahara has everything to be the nourishment of the world, with more than 60% of the world’s arable land. It has an abundant workforce, favorable climatic conditions and fertile soils.
The local development of this industry will compensate for the strong imports of basic necessities of food and food products.
Countries that depend a lot on revenue from sales of petroleum products or had to rethink their economic policies after the fall in oil prices in 2016. Thus, the agricultural sector has received a lot of attention and consideration in order to develop it, via different grants.
With a population of one billion, Africa is a major local consumer market. However, the continent does not yet manage to feed all its populations and will be even less so tomorrow if this industry does not develop considerably, also taking into account the continuous population growth of the continent. It is therefore urgent to supply the booming African market as a priority. This makes it essential to cross the course of industrialization, primarily in the agricultural sector. Rather than continuing to focus on export crops whose price control rests with buyers, African investors and entrepreneurs should focus on industrial production and the marketing of local products.
Barely 25% of Africa’s population has access to electricity. With an estimated need of 700 GW, the amount of infrastructure for the construction and supply of energy is estimated at 40 billion dollars per year. These needs are growing over time. High-potential energy sources such as solar and wind power should be developed as a priority alongside large dams to be built.
Solar energy is one of the continent’s most abundant resources. It is clear that nature grants 300 free days of sun south of the Sahara but that more than 600 million people do not have access to electricity. Instead, they turn to generators with gasoline or diesel engines.
Some young entrepreneurs have taken the lead and turned to solar, convenient, clean and abundant to serve remote areas.
Here are a few examples:
Kenya-based provider of pay as you go solar power systems has raised over $ 40 million from investors and has supplied more than 300,000 domestic households to Kenya, Tanzania, and Uganda.
- A Tanzanian energy supplier recently had $ 25 million from investors and on track to provide solar power to 1 million homes in East Africa.
Exploring, further, this sector would be a boon for West Africa.
This sector is estimated at several billion dollars. Projects are emerging in all corners of the continent. Furnished residences, apartments, hotels, offices and shopping centers; Nigeria alone requires 17 million housing units worth $ 363 billion. It is one of the main real estate markets with Angola, Egypt, Mozambique, South Africa. The expanding middle class, urban growth, expatriates and multinationals are the main drivers of demand for commercial and residential real estate.
Some pitfalls of the African business community:
- Difficulties in accessing funding.
- Administrative, customs and tax barriers.
- Legal issues.
- Unqualified and poor quality staff.
- Obsolescence of infrastructural and economic fabric.
Some tips for investing in West Africa:
Be imaginative, mindful of the real needs of customers. Be determined, but be patient nonetheless. Finally, networking can be beneficial to you. Share your experience.