Over the past decades, Africa has explored great depths for its rise in economic growth and investment opportunities. While Africa offers great returns compared to most emerging market economies, it cannot be observed as a solitary performing body.
Highlighted below are the four (3) key investment opportunities in Africa.
Africa has a global comparative advantage in agriculture, being home to more than half the world’s agriculturally suitable and highly unused land, resources and its vast water resources have hardly been tapped. 60% of the world’s uncultivated land is in Africa, while the continent is only responsible for 10% of the world’s agricultural produce. Agriculture as an untapped investment opportunity is set to be a major growth driver over the next few years, surpassing mining and metals.
Reliable and affordable energy lies at the forefront of Africa’s pursuits, to elevate economic growth and sustain the needs of an increasingly urbanized population. Many African nations struggle with high costs, low capacity, and constant power outages.
Although the level of investment funding required to adequately electrify the continent outweighs the capacity of government initiatives, the economic cost to remain with inadequate structures retards economic growth and its objectives.
The opportunities in Africa’s geothermal explorations are abundant and estimated at 7 to 15 GW. Though abundant, solar power is untapped and underused accordingly.
Africa’s gaps in convention energy structures provide the opportunity for low-carbon solutions, especially since it holds more than half of the world’s renewable energy potential.
Retail is a fast-growing sector in the continent, experiencing exceedingly impressive growth rates, and contributing to the income distribution expanding Africa.
When taking into consideration the consumer behavior favorable to retail investing, Nigeria, Ethiopia, and the DRC have the most favorable consumption spending growth, however, mainly stemming from their large population rates.
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