There’s an abundance of wonderful enterprise opportunities in Africa. And the success tales you’re about to learn show just how much these alternatives are value.
Based on the IMF’s World Financial Outlook report, six of the ten quickest growing economies in the world are in Africa. And by 2050, the continent’s financial system might quadruple its present measurement and be value as much as $29 trillion.
Africa’s journey to economic prosperity will create huge winners who have the best perspective on the continent.
You see, when most individuals take a look at Africa, all they see are problems and challenges: starvation, unemployment, illiteracy, waste, monetary exclusion, inadequate electricity, and an extended record of others.
However while most people are annoyed by, and complain about, these issues, entrepreneurs are excited and impressed by them.
Whereas most individuals keep away from and run away from these issues, entrepreneurs rush forward to embrace them.
Because they see issues in another way, successful entrepreneurs know that behind each robust drawback is an opportunity to create an answer that may generate profits, create jobs, and change individuals’s lives.
Successful entrepreneurs know that Africa is a market that overwhelmingly rewards problem-solvers. Subsequently, the bigger the issues you’ll be able to clear up, the upper the potential rewards you get.
This article is a snippet of over 100 of probably the most fascinating methods to become profitable in Africa.
The alternatives you’re about to study don’t belong to the previous, conventional and uninspiring industries – crude oil, gold, timber, agricultural commodities and diamonds.
Relatively, you’re about to witness a few of the most revolutionary and refreshing alternatives that younger entrepreneurs are exploring throughout the continent.
Most of these alternatives are dressed up as ugly-looking issues that scare most people. However the success stories you’re about to read show that there is typically a goldmine of wealth, jobs and success if you tackle robust issues.
Let’s meet the highest enterprise opportunities in Africa:
- 1 1. SoleRebels (Ethiopia)
- 2 2. Africa Felix Juice (Sierra Leone)
- 3 three. Paystack (Nigeria)
- 4 four. Anna Phosa (South Africa)
- 5 5. Takamoto Biogas (Kenya)
- 6 6. Omega Faculties (Ghana) and Bridge International Faculties (Kenya)
- 7 7. Patrick Ngowi (Tanzania)
- 8 8. AgriProtein (South Africa)
- 9 More business alternatives in Africa…
1. SoleRebels (Ethiopia)
Bethlehem Alemu, Founder of SoleRebels, Republic of Leather, and Backyard of Coffee
Bethlehem Tilahun Alemu grew up in Zenabwork, a poor village in the suburbs of Addis Ababa, Ethiopia.
She came upon an fascinating business opportunity after years of noticing how artisans in her group remained jobless and poor, despite their wonderful craftsmanship and means to make great-looking and high-quality footwear.
What these artisans lacked was entry to a profitable market. And fairly than blame and criticize the state of affairs, Bethlehem determined to seek out to a market.
In 2004 she started her company, SoleRebels, by efficiently elevating capital of $10,000 from relations.
Through the use of locally-sourced, hand-loomed and organic fabrics mixed with recycled supplies like previous automotive tyres and uniforms, she created a singular eco-friendly model of footwear merchandise that turned some of the widespread African footwear manufacturers in the world.
As we speak, SoleRebels, sells its ‘eco-friendly’ brand of footwear in greater than 50 nations around the globe, including the USA, Canada, Japan and Switzerland.
Some years ago, SoleRebels turned the primary footwear company in the world to be licensed by the World Truthful Trade Organisation.
Through the use of local craftsmen, Bethlehem has built a worldwide model and a massively profitable enterprise that has created jobs and improved livelihoods in her area people.
Immediately, the corporate has more than 100 staff and almost 200 native raw materials suppliers, and has opened several standalone shops in North America, Europe and Asia.
Despite its very humble beginnings, SoleRebels makes up to $1 million in gross sales annually.
Buoyed by her success with SoleRebels, Bethlehem is making use of the same enterprise model to Ethiopia’s large leather business. In 2014, she launched Republic of Leather, a brand new business that makes and exports luxury leather-based products like luggage, belts and different non-footwear leather accessories.
And she or he is doing the same thing for her nation’s coffee business. She launched Backyard of Coffee, a espresso retail chain that specializes in Ethiopia’s legendary hand-roasted espresso recipes and might grow to be the ‘Starbucks of Africa.’ The chain plans to confide in 100 espresso outlets in China by the yr 2022.
By reworking local Ethiopian merchandise into engaging international manufacturers, Bethlehem has not only created wealth, jobs and fulfilling work.
By efficiently exploring three totally different business opportunities in Africa, she has additionally earned international recognition for her work and has made her country immensely proud.
Bethlehem was selected because the Young International Chief of the Yr 2011 on the World Economic Forum in Davos, Switzerland, and was a winner at the Africa Awards for Entrepreneurship in the same yr.
Bethlehem and her inspiring success story have been featured severally on Forbes, the BBC and CNN.
2. Africa Felix Juice (Sierra Leone)
Production employees at work on fruit sorting facility at Africa Felix Juice manufacturing unit, Sierra Leone
As a result of its location in the tropics, Africa is among the largest producers of fruits in the world. Nevertheless, as a consequence of poor processing and storage capabilities, a significant portion of the fruits harvested in Africa every year is wasted.
In some nations, this example is so dangerous that fruits and concentrates are imported from abroad despite their native abundance.
For instance, do you know that Nigeria, which produces oranges in giant portions, still spends tens of millions of dollars to import orange concentrates for its fruit juice business?
Because of this widespread drawback, Africa is dropping out in the large and fast-growing international demand for uncooked and dried fruits, concentrates, juices, flavorings, and a wide variety of fruit-based merchandise.
In West Africa, an organization in Sierra Leone has created a profitable opportunity out of this drawback.
Africa Felix Juice is a Sierra Leone-based firm that produces juice concentrates from mangoes and pineapples which might be harvested throughout the country.
The company buys mangoes from more than 4,000 small farmers in Sierra Leone.
It collects the fruits and takes them to its processing facility the place they’re processed (sorted, washed and crushed) into juice concentrates, the primary ingredient for making fruit juices.
By buying fruits from local families and farmers, the corporate is creating value from hundreds of thousands of mangoes that otherwise rot away and go to waste yearly.
The company’s mango and pineapple juice concentrates are mainly exported to Europe where they are used to make fruit juices and flavorings for the meals business.
These concentrates have been the primary main export from Sierra Leone since it got here out from a devastating civil warfare almost ten years in the past.
three. Paystack (Nigeria)
Co-founders off Paystack: Shola Akinlade and Ezra Olubi
In comparison with the remainder of the world, cost methods in Africa are largely ‘old school’ and have to catch up.
More than 60 % of adults on the continent wouldn’t have access to formal monetary providers. And most transactions are still completed in cash, which might be very inconvenient.
Worse still, many merchants discover it troublesome to simply accept digital funds because of the technical and monetary obstacles, and the usually difficult negotiations required to set up online funds.
With a big market and a few of the fastest-growing economies in the world, Africa presents a promising market for e-Commerce, identical to India and China.
After working at beer big Heineken for two years, two younger Nigerian entrepreneurs – Shola Akinlade and Ezra Olubi – decided to develop an answer to the payments drawback.
Their answer was Paystack, a sensible and surprisingly simple app that permits Nigerian merchants to simply accept a wide range of native and worldwide digital funds. And to process transactions, Paystack fees very aggressive charges – just one.5% of the transaction value for local transactions, and 3.9% for worldwide.
This ingenious answer led to Paystack’s acceptance into the distinguished Y Combinator Accelerator program in Silicon Valley, turning into the primary Nigerian startup to ever be a part of the program.
By 2018, Paystack processed over $20 million in monthly transactions for more than 17,000 businesses in Nigeria.
After raising $1.three million from a gaggle of buyers in 2016, the corporate raised a further $eight million in 2018 from a group of buyers that included international payments big Stripe and Visa.
four. Anna Phosa (South Africa)
Anna Phosa with pigs on her large-scale integrated pig farm
With a inhabitants that is anticipated to double in measurement to over 2 billion individuals, Africa could have the quickest rising inhabitants in the world over the subsequent 30 years.
And with all these mouths to feed, meals can be one of many largest enterprise alternatives in Africa as we enter the longer term. This consists of all the things from grains and meat, to greens and processed meals.
The World Financial institution tasks that Africa’s agribusiness sector could possibly be a $1 trillion opportunity by 2030. And in response to the UN’s forecasts, demand for meat, milk and eggs in Africa will virtually quadruple by 2050.
Nevertheless, presently, Africa spends over $35 billion on meals imports annually. This drawback presents an fascinating business opportunity for local producers who can produce food that can substitute these imports.
That’s precisely what Anna Phosa is doing with pork in South Africa.
Before hitting the limelight, Anna was an odd entrepreneur who made a livelihood from her small vegetable farming business in Soweto.
She was launched to pig farming by an in depth good friend and immediately developed a liking for the enterprise.
In 2004, Anna invested 1,000 Rand (about $100) to purchase 4 pigs which she used to start out up her personal small pig farm.
A little less than four years later (in 2008), Anna was contracted by Decide n’ Pay, the South African supermarket and retail chain, to provide its shops with 10 pigs per week.
As a result of rising market demand, the order shortly grew to 20 pigs per week. And in 2010, Anna signed a wide ranging contract with Decide ‘n Pay to provide 100 pigs per week over the subsequent five years beneath a 25 million Rand deal (roughly $2.5 million at the time).
With a contract in hand, Anna acquired funding from ABSA Bank and USAID to buy a 350-hectare farm property. From just 4 pigs, her new farm holds almost 4,000 pigs at a time and supplies roughly 100 to 120 pigs every week to retailers in South Africa.
As Africa’s inhabitants grows and the demand for meat booms, alternatives like these will open up throughout the continent for major meats reminiscent of beef, pork and hen, as well as area of interest meats akin to snails, rabbits, and bugs.
5. Takamoto Biogas (Kenya)
A cheerful biogas consumer and buyer of Takamoto Biogas in Kenya
Over 700 million Africans nonetheless rely upon cooking fuels like firewood, charcoal and kerosene.
Aside from being dirty polluting fuels that contribute to international warming and well being problems, the manufacturing of firewood and charcoal takes lots of time and power, and has prompted the destruction of huge forest areas.
Additionally, the worth of kerosene, one other soiled gasoline, could be very weak to the unpredictable worth swings of crude oil on the worldwide market.
To remedy these issues and still meet the power needs of its giant and fast-growing population, Africa wants cooking fuels which might be renewable, eco-friendly, extensively obtainable, and reasonably priced to most people.
That’s precisely that biogas presents; probably the most promising enterprise opportunities in Africa.
Founded by a group of American and Kenyan entrepreneurs, Takomoto Biogas has created a system that permits rural dairy farmers to convert cow dung (animal waste) into a clean and low cost gasoline (biogas) that is used for cooking, lighting and heating.
Takamoto Biogas supplies Pay-As-You-Go biogas techniques to its clients, primarily smallholder farmers, who pay a small charge to put in the biogas system and then pay small monthly installments for the biogas they use.
Takamoto screens the biogas system by way of a GSM-connected sensible meter that sends info relating to the maintenance of the unit and customer cost standing.
In addition to the biogas system, Takamoto supplies biogas family home equipment.
By offering a clean, reasonably priced biogas answer this enterprise has discovered an revolutionary strategy to clear up a critical economic and environmental drawback, and earn cash too.
6. Omega Faculties (Ghana) and Bridge International Faculties (Kenya)
The commonplace and high quality of schooling in many elements of Africa is in very dangerous form.
On a continent with over 50 % of its individuals under the age of 25, and one in every three youngsters out of faculty, it is estimated that greater than 60 million African youngsters might attain adolescence missing even probably the most primary literacy and numeracy expertise.
However is it attainable to offer quality schooling to poor individuals and still earn a living? Might it develop into one of many viable business opportunities in Africa?
Sure, it’s very attainable and some entrepreneurs are already doing it.
Two for-profit businesses, Omega Faculties (Ghana) and Bridge Worldwide Faculties (Kenya) are changing the face of schooling in Africa via an revolutionary and highly efficient low-cost main schooling model.
Each corporations have turn out to be profitable social enterprises and have acquired numerous awards for excellent social influence.
Omega Faculties, based mostly in Ghana, is a sequence of low-cost personal faculties that gives primary main schooling to youngsters from poor households for an incredibly low and reasonably priced charge (less than $1 a day per scholar).
Co-founded in 2009 by Ken Donkoh, a Ghanaian entrepreneur, and British professor James Tooley, the pay-as-you-learn schooling model for Omega Faculties was developed by Donkoh throughout his MBA program.
Bridge Worldwide Faculties, a sequence of low-cost personal faculties in Kenya, Liberia, Nigeria, uses an analogous low-cost mannequin to offer reasonably priced schooling to hundreds of youngsters in East Africa for less than $5 per thirty days per scholar.
Pupils at Bridge faculties persistently carry out above the national average in Kenya, and a research by the UK’s DFID discovered that Bridge faculties in Nigeria provide equality in studying, regardless of a child’s socio-economic background.
Earlier than these superb companies began, most people thought it was unattainable to teach poor individuals at a revenue.
But at the moment, each personal faculty chains are educating over 200,000 youngsters in East and West Africa, most of them from poor houses.
7. Patrick Ngowi (Tanzania)
Entry to electricity is an enormous drawback is many elements of Africa, especially in rural areas.
Even in the large cities, most households and companies should rely upon backup power turbines which are noisy and produce poisonous fumes that contribute to international warming.
However, Africa is the house of free all-year-round sunshine. And electrical energy produced from solar rays is clear, renewable, reliable, and doesn’t produce any noise or toxic air pollution.
This is among the enterprise opportunities in Africa that Tanzania’s Patrick Ngowi has successfully built a thriving firm on.
He started enterprise selling Chinese language-made cell phones. However then he found that solely a tiny fraction of his clients had entry to electricity to cost their telephone batteries.
He continued traveling to China, but as an alternative of cell phones, he bought solar power supply hardware and installation methods.
Right now, his firm, Helvetic Solar Contractors, has installed greater than 6,000 small rooftop solar methods in Tanzania and 4 other East African nations – Kenya, Uganda, Rwanda and Burundi.
Though renewable power makes up about one % of Tanzania’s electricity sources, Patrick’s firm already boasts of excessive profile shoppers just like the United Nations, the Tanzanian authorities, World Vision and the Tanzanian Army.
To date, Helvetic Solar Contractors has put in a number of solar water heating methods in authorities institutions and several UN tasks including faculties, hospitals and resorts.
In 2013, his business made more than $5 million in revenues and the corporate was valued at $15 million by KPMG!
His astounding success story has attracted loads of media consideration.
In early 2013, he was featured by Forbes as one of the 10 Younger African Millionaires to observe in 2013. His company was also ranked at the prime of KPMG’s East Africa’s Survey of Top 100 Mid-Sized Corporations in Tanzania in 2012.
8. AgriProtein (South Africa)
Staff at a maggot processing station on Agriprotein’s facility in Johannesburg
Waste is an enormous drawback all over the world, including Africa.
Every single day, we produce tons of meals and natural waste from households, markets, farms, eating places, lodges, markets, parks and faculties.
Naturally, flies feed on these organic waste and lay billions of eggs in them. The maggots that hatch from the eggs feed fat from the waste and play an important position in waste decomposition.
However what if I informed you that it’s attainable to build a worthwhile enterprise from maggots?
Based by two brothers, David and Jason Drew, AgriProtein is a business in South Africa that has found out an revolutionary and profitable approach of solving the world’s organic waste drawback by producing maggots which might be used as animal feed.
The company breeds billions of flies on a farm to lay eggs and produce maggots. The maggots are ate up natural waste material (akin to human and animal waste, leftover meals, and blood from slaughtered animals in local abattoirs).
After the maggots are fed and fattened on the natural waste, they’re washed, dried and grounded to supply animal feed meal that could be very excessive in protein.
This high-protein meal has proved to be a pure and cost-effective various to fish meal which is used for feeding chickens, fish and pigs.
AgriProtein’s maggot-based animal feed is more than 15 % cheaper than different options and has been proven to be highly nutritious for livestock.
And extra importantly, AgriProtein’s maggot-based protein meal will save hundreds of tons of small fish which might be caught in the world’s oceans every year for fish meal production.
The firm attracted greater than $10 million in capital to construct more fly farms in South Africa. AgriProtein was also provided one million Euros to set up a fly farm and maggot production plant in Germany.
In 2018, Agriprotein raised a whopping $105 million for international enlargement into the Middle East and Asia.
The firm is now engaged on its first era fly factories that would take up and recycle up to 250 tons of waste per day.
More business alternatives in Africa…
The opportunities in this article symbolize only a handful of the way to earn a living in Africa.
We’ve got put collectively one of the crucial comprehensive guides ever written on the top enterprise opportunities in Africa and the success stories of entrepreneurs that prove their value.
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