Your Investment Guide 

Although Africa is sometimes negatively portrayed by the media, its growth prospects are bright, they differ not only country by country but also sector by sector. For those who have invested on the continent, the profit in the next five years is most likely to triple.

Africa is the second most populous continent with about 1.1 billion

People, 16% of the world’s population and over 50% of these are under

the age of 25.

The continent’s population will more than double to 2.3 billion people by

2050, meaning the consumption levels will more than double as well.

According to Market Watch, the U.S. economy will expanded by 3.1% in 2015, while the euro area forecasted to produce growth of only 1.3%.”

From these forecasts and other indices given by professionals it shows that it is highly profitable investing in Africa now; better than investing in the developed economies.

Here are some of the most exciting sectors to invest in

 

Tech startups

Although Africa’s technology space has not yet taken the global space, the amount of innovations created out of each country to solve solutions is massive. Huge amounts have been invested in the western world where $13.6 billion was invested in technology start-ups in Europe in 2016 and $58.8 Billion in U.S. in 2015. Africa received US$129.1-million in 2016.

While the number of startups receiving funding increased to 146, the actual amount of funding saw a decline. Meaning there is still an opportunity to bet your money in the sector; and this is why;

Global dynamics indicate that China is losing its competitiveness in low end manufacturing of ICT, India is stepping up its game but there is also opportunity for African countries to take advantage of the sector. However, this will require massive investment in the sector.

 Agriculture

While more than one-quarter of the world’s arable land lies in Africa, it generates only 10 percent of global agricultural output. So there is huge potential for growth in a sector now expanding only moderately, at a rate of 2 to 5 percent a year

Here is the problem though; Food imported in Africa is food exported as a raw material from Africa.

As the continent continues to suffer this trade deficit, there is a big opportunity to invest in value addition.

experts estimate that sub-Saharan Africa alone requires additional annual investments of as much as $50 billion. African agriculture therefore needs business models that can significantly increase the level of investment from the private and public sectors, as well as donors.

 

Real-estate 

By 2100, it is projected that nearly 40% of the world’s population will live in Africa while Over the next five years, 13 of the 20 fastest-growing economies in the world are forecast to be in Africa. With this the real estate sector remains a growing opportunity for Africa focused investors.

In Rwanda alone, the Hotel, Retail and Residential sectors pulled a lot of investment last year.

The growth of African cities is also creating a demand for increased volumes of high-quality commercial and residential real estate.

Any investor would see that this is a future worth investing in considering the fact Africa is almost like a virgin economy; whereas there’s no aspect of the western economy that has not been fully explored. Many fields in the African economies have been either untouched or underutilized.

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