Africa has always been considered one of the most sought-after continents when it comes to doing business. The following are the top five businesses in Africa that are considered to be popular as well as revenue-generating ones.
Financial Technology Business
With their innovative approaches to solving problems, financial technology companies continue to outperform many startups in the African continent. Africa is the second-fastest-growing and most lucrative payments and banking sector in the world, only behind Latin America, according to Tech Crunch. Over 500 financial technology companies are based on the continent, with the majority in Nigeria, South Africa, and Kenya.
According to World Bank statistics, 66% of people in Sub-Saharan Africa do not have access to banking services. Another factor contributing to the success of financial technology firms across the continent is the unbanked population. They use technology to improve, automate, and change the way that financial services are provided to both consumers and enterprises.
Food Business
The food industry is one of the sectors on the continent with an increasing growth percentage, with many investors profiting from its resources. Business Standard reports that the food industry in Africa saw growth of 3.6% in 2020–21 and 3.9% in 2021–22.
The demand for packaged and processed meals is skyrocketing, and there is a significant increase in the consumption of frozen and dairy products. Other growth-related causes include the expansion and innovation of the food and beverage industry.
Real Estate Business
Due to Africa’s substantial population, there is a considerable demand for both commercial and residential real estate. The Nigerian real estate market expanded by 1.77% in 2021 and 10.84% in the first quarter of 2022, according to Nairametrics. USD 10 billion, or an 8% increase, was generated by the Egyptian real estate industry in 2021.
Nairametrics projects that Egypt’s real estate market would rise by 6.5% in 2022. Kenya’s real estate market increased by 5.2% in the third quarter of 2021, and 5.9% growth is anticipated in 2022. African entrepreneurs profit by leasing, purchasing, and renting out commercial and residential properties, making the real estate industry one of the most lucrative in the continent.
E-Commerce Business
African businesses in e-commerce are expanding quickly as a result of innovation and technological advancement. Businesses in this sector enable the online trade of products and services between people and companies.
Africa’s real estate market worth is anticipated to reach USD 180 billion by 2025, according to Vanguard Newspaper. The report also revealed that funding for African eCommerce projects reached over USD 256 million in 2021, an increase of 40% from 2020.
Africa Business Communities said that by 2025, the e-commerce sector is anticipated to produce USD 46.1 billion in annual sales.
Logistics Business
In many African nations, the logistics industry is profitable and growing at a quick pace. No matter where they operate—in Mauritius, South Africa, Ethiopia, Ghana, Kenya, or Nigeria—entrepreneurs reap huge financial benefits.
Africa’s logistics market, according to Market Watch, increased from millions to multi-million dollars between 2017 and 2022. According to Sawya reports, the Suez Canal in Egypt brought in USD 704 million in revenue in July 2022, an increase from the USD 531.8 million reported in July 2021.
With the rise of delivery companies collaborating with both traditional and online merchants, the industry is successful in many African countries.