Africa’s potential as a growth market has been underestimated for quite a long time. With a fast-growing population, tremendous economic potential and rewarding opportunities for investors and partners, the best time to invest in the continent is now. In fact, over the next three decades, the global population is set to grow by about 2 billion people, with half of that growth situated in Sub-Saharan Africa. This means that the continent has an abundance of labour, increased demand and supply of goods and services and industrialisation opportunities to tap into. As it stands, Africa has a lot to offer and being a global player is the only option going forward.
“But how do we become a global player?” one may ask. Here are some profitable and sustainable growth opportunities and strategies that Africa can leverage to level up in the area of infrastructure, poverty alleviation, job creation and economic development.
It is a known fact that manufacturing is one of the keys to unlocking productive jobs, more significant export revenues, and sustainable development. It is, therefore, important that Africa harnesses all the opportunities in the manufacturing sector. Taking a cue from the success of the manufacturing industry in Asia, Africa has the resources and capacity to build a successful manufacturing industry that will create export revenues, infrastructural developments and increased GDP.
Africa is one of the richest continents as it holds a huge proportion of the world’s natural resources, both renewable and non-renewable. According to the United Nations Environment Programme, Africa is home to about 30 per cent of the world’s mineral reserves, eight per cent of the world’s natural Gas and 12 per cent of the world’s oil reserves. The continent has 40 per cent of the world’s gold and up to 90 per cent of its chromium and platinum. The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa. The continent also holds 65 per cent of the world’s arable land and ten per cent of the planet’s internal renewable freshwater source. This shows that wealth resides in the continent and it requires the collective effort of individuals, businesses, and government agencies to explore and manage our natural resources in a sustainable and climate-friendly manner.
With the arable lands in Africa and burgeoning population growth, the food and agricultural sector is a major playing field for any business. The continent has so many benefits in terms of fish farming, palm oil production, exportation, insect farming and the adoption of healthy food trends globally. There is also a high demand for food items like Fonio, Moringa and some other health-beneficial crops that can be found in large quantities within Africa. Therefore, businesses must find a way to integrate modern technologies in food processing and production to increase exportation and generate income by making Africa a sophisticated food hub.
According to infomineo, the second-largest sector after agriculture in Africa is the fashion and textile industry with an estimated market value of $31 billion. There is an opportunity for the textile and clothing industry to drive Africa’s industrial transformation and create job opportunities. Before we get carried away by the figures, the Chinese are taking over Africa’s wax print business by capitalising on the manufacturing and production of African print fabrics. This is ironic, considering that there are different business opportunities within the African fashion industry in areas like cotton production, weaving and knitting of fabric, tye and dye, printing, designing, production and marketing which Africans can take advantage of. Investing in developing skills in this industry will generate revenue that will engender greater economic productivity for the continent.
With the high demand for African textiles and garments globally, the fashion industry can collaborate with top players in the fashion industry to integrate more African pieces into their collections.
Elsewhere, in the year 2021, the tech industry experienced massive recognition and global funding to enrich the sector in Africa. The increase in the global start-up industry has provided employment opportunities and demand for young, talented workers. For instance, early in 2022, Microsoft opened its first development centres in Africa and other big tech companies are following suit. This will greatly shape the future of globalisation and our way of working in the coming years. Many businesses, schools and other industries will benefit from the impact of tech on the continent.
In conclusion, Africa has a lot of great potential. This article only scrapes the surface of business development opportunities that Africa possesses as there are many opportunities to be explored to enrich the continent. One thing is sure: we all need to wake up and utilise our resources while we can.
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Ronke Sonaike is a communications and PR consultant at BHM UK with interests in body positivity empowerment, lifestyle and fashion.