There is a lot of business going on in Africa right now. But there are also a lot of untapped business opportunities in Africa.
If you are looking for business ideas that no one or few people are implementing, then you have come to the right place. In this article, we explore some of the untapped business opportunities in Africa and share some insights on setting up a successful business in Africa.
List of Untapped Business Opportunities in Africa
Here is a list of some of the untapped business opportunities in Africa:
1. Agribusiness in Africa
Africa has a lot of raw materials that can produce food for the continent and medicine and other conveniences.
The continent’s climate is conducive to growing almost anything. With the current problems experienced by some countries in Asia, Africa is becoming an excellent alternative for people who want to invest in agriculture.
Here are some ideas on starting an agribusiness venture:
- Packaging Unprocessed agricultural products like cocoa beans, coffee beans, and palm oil into convenient packaging for consumers.
- Processing Unprocessed agricultural products into finished goods other industries can consume or use as raw materials.
- Growing and exporting agricultural produce like rice, cassava, yams, and bananas to international markets.
- Starting an organic farming farm to produce organic foods like fruits and vegetables for local or export markets.
2. Business Process Outsourcing – BPO
As the name suggests, this type of business entails outsourcing a business process from a client to a third-party service provider.
You can offer Business Process Outsourcing services in Africa. There are already a lot of business process centers in Africa. But the opportunities for investors of BPO ventures still abound.
This is one of the most promising untapped business opportunities in Africa. The growth of the BPO industry will increase as internet penetration increases.
3. Food Processing Business in Africa
You do not have to go big; even small businesses can make money from this venture.
Say, for example, you want to process cocoa beans into chocolate products like flour, powdered milk, and candy bars; with the current cocoa crisis, you have an enormous market for your products. This business idea can be a goldmine with the right capital and marketing strategy.
4. Off-Grid Solar Development and Supply Business
Many African countries still rely on kerosene, candles, and dry cell batteries as power sources.
This is a tremendous market opportunity for those who can provide off-grid solar development and supply services.
The off-grid solar system is a renewable energy source that can power up homes and offices with or without connection to the national grid.
5. Manufacturing of Electric Bicycles in Africa
Electric bicycles are becoming very popular in the developed world, especially with increasing oil and gas prices and environmental concerns.
In Africa, electric bicycles can be a suitable alternative for vehicular transportation. And again, if you source or manufacture these bicycles locally, that will be another untapped business opportunity in Africa.
6. Untapped E-Commerce Business
Another very lucrative untapped business opportunity in Africa is the e-commerce business.
With improvement in internet penetration and mobile phone usage, e-commerce is taking off in Africa. The other reason eCommerce is an excellent business opportunity in Africa is the young population in Africa.
These young Africans are always online, especially on their mobile phones. They are more trend-conscious and have a lot of disposable income to spend on the latest fashion trends or whatever they see online.
There are many opportunities for those interested in the E-commerce business. One idea is to accept online payments from customers using local currencies.
7. Blue Economy Business in Africa
The Blue Economic business is one of the most promising possible untapped business opportunities in Africa.
Blue Economy refers to ocean-related industries that contribute to economic growth, social development, and improved living standards for people living near coastal communities.
Examples are fish farming, oil exploration, biofuels from algae, and manufacturing pharmaceuticals from marine organisms.
8. Eco-Tourism in Africa
Africa has many tourist attractions: wildlife, safaris, nature trails, and other exciting places.
This is an ample opportunity for African countries to develop their tourism industry by providing accommodations for visitors and offering tours around the country or continent.
Business ideas in the Eco-Tourism industry are many.
9. Data Storage Business Opportunity
With advancements in information and Communication Technology, more data is being generated.
There is a growing need for data storage services, as there is limited space to store the ever-increasing volume of digital content.
Business owners can offer cloud-based backup solutions to individual users or companies. Another idea is to provide internet-based file-sharing platforms to share their data storage.
10. Cybersecurity opportunities in Africa
Another beautiful business opportunity in Africa is cybersecurity.
With over 1.7 billion people online globally, there is a need for cybersecurity services to protect user identities and assets from unauthorized access.
Cybersecurity experts can help companies secure their communications networks against cyberattacks and intellectual property theft.
And if you have the skills to detect vulnerabilities in computer systems, you can become a cybersecurity consultant.
11. Fintech Industry in Africa
Mobile phone penetration is very high in Africa.
And with the massive spread of mobile devices, there is an enormous opportunity for the Fintech industry in Africa.
Financial technology (FinTech) means using technological tools to provide financial services, such as money transfers and lending. These technologies include biometrics, machine learning, artificial intelligence, cryptography, mobile payments, blockchains, crowdsourcing, and more.
12. Opportunities in Edutech
Africa is a continent with the most considerable illiteracy levels in the world.
It is estimated that 65% of adults in Sub-Saharan Africa cannot read or write.
This is a vast untapped business opportunity for those who want to educate young Africans on how they can benefit from technology and use it as a tool for their development.
The Edutech industry involves developing digital content to teach students how to use the internet to learn.
The best business idea in this industry is to develop mobile applications for children with games, quizzes, and educational videos that teach digital literacy skills.
13. Urban Logistics Solutions in Africa
There are many opportunities to be explored in the Urban Logistics Solutions business.
As African cities continue to grow, businesses need advanced technologies and solutions that can help them manage the growing volume of goods that they receive and deliver efficiently. This is an opportunity for entrepreneurs with experience in building marketplaces for trading interests in the digital space.
14. Low-cost Healthcare
One of the biggest challenges for Africa is healthcare.
Africa has the lowest life expectancy and child mortality rates in the world.
This is a tremendous business opportunity for entrepreneurs and investors to provide low-cost medical care.
There are many ideas: mobile clinics, health insurance, telemedicine, online pharmacies, etc.
Business owners can also develop new ideas that can improve the healthcare industry.
15. Affordable Housing Opportunities
There is a significant housing shortage in Africa that has been going on for quite some time now.
This is an opportunity for those who want to be entrepreneurs and investors, as the African government’s priority is to provide affordable houses for their citizens. Entrepreneurs can offer consulting services to those interested in the real estate industry. Another idea is to provide low-cost home designs that can be constructed using local materials.