Despite rising food and fuel prices, weakening currencies, the effects of climate change, security threats, political instability, severe electricity shortages, infrastructure limitations and several other economic and social, Africa remains one of the fastest growing emerging economies in the world and is expected to excel in the years to come.
According to the recent Activator HQ report defining Africa’s Top 100 Opportunities to Watch in 2024providing a guideline to the continent’s most lucrative business ideas and investment opportunities, 2024 presents several exciting opportunities for business creation and growth in Africa.
The Africa Top 100, now in its seventh edition, identifies specific business ideas and investment opportunities in more than 30 growing markets, industries, value chains and underserved niches across Africa.
High economic growth predicted for Africa
Despite the slow pace of Africa’s post-Covid recovery process, the outlook for 2024 is promising. Nigeria, South Africa and Egypt offer unique business investment opportunities and countries like Senegal, Ethiopia, Tanzania, Ivory Coast, Rwanda, Burkina Faso, Gambia and Benin are estimated by the International Monetary Fund (IMF) at 6%. growth in 2024 compared to this year which is twice as high as global economic growth estimated at 2.9% for 2024.
The CEO of Activator HQ believes that the in-depth analyzes they conducted during monthly research reveal gaps in the market that hold potential for lucrative commercial efforts on African content: “It is interesting to see at from our 2024 selection that more companies Investment ideas and opportunities in Africa actually arise from unmet market needs, difficult but very rewarding problems and the megatrends we have identified that are currently shaping the continent.
It’s true that problems are often a springboard to infinite possibilities. In Africa, the continent’s deficit in food security, housing, finance, education, energy and other critical areas is inspiring innovative solutions, products and services from a growing number start-ups and companies in the growth phase.
Here are the highlights from the list that best define the major upcoming business opportunities:
- The food sector remains a multi-billion dollar growth opportunity for the continent. The Africa Top 100 showcases several business ideas across the food value chain, from agricultural production to processing, marketing and services to local and export markets.
- The digital economy represents a $180 billion opportunity for Africa by 2025. With the world’s youngest population, digital skills training and outsourcing is a strategic but under-explored market gap that is full of innovative ideas for new businesses and investments in Africa, especially for in-demand skills. such as cybersecurity, data analytics, digital marketing and software development.
- The circular economy: waste recycling, such as generating electricity from landfilled waste, recovering metal scraps for reuse, and transforming municipal wastewater into fresh drinking water, offers business and economic opportunities. interesting investments that could, conservatively, inject an additional $8 billion into Africa. economic according to the United Nations Environment Program (UNEP).
- The energy value chain is rich in opportunities for Africa. The combination of the effects of climate change, growing penetration of renewable energy, and soaring energy prices precipitated by the war between Russia and Ukraine has created market gaps and opportunities for more African gas supplies to Europe. There are also opportunities for local substitution of cooking fuels such as firewood and charcoal with natural gas, as well as solar energy applications for cold chain solutions.
- Financial services remains one of the fastest growing and most lucrative sectors to watch in Africa in 2024. While payments and consumer credit typically get most of the attention, niche opportunities such that diaspora investment funds and women-focused finance are highlighted in the latest Africa Top. 100 guides.