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Investing in Africa : Overview and business opportunities

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Investing in Africa : Overview and business opportunities

Africa, with its 1.5 billion inhabitants and youthful population, comprises 55 countries. The continent is rich and diverse, offering numerous investment opportunities in sectors such as agro-food, technology, real estate, tourism, crypto, and Forex. Every business has the potential to generate profits, but these are proportionate to the risks involved. Where should you invest in Africa? Which sectors offer the best opportunities? Which countries present the most promising investment prospects?

Summary of a Considerable Yet Largely Untapped Economic Potential

Key information to know before investing in Africa

Natural resources available in Africa

Africa is undoubtedly the richest region in the world in terms of natural resources :

  • 40 % of gold reserves
  • 35 % of mineral reserves
  • 30 % of oil reserves
  • 60 % of uncultivated arable land

Human resources for any investment project

  • Very low labor costs
  • One-third of the world’s youth will be in Africa by 2050
  • Nearly 830 million young Africans by 2050

Technology’s significant role in Africa

  • 800 million people are connected in Africa
  • 80 % of the Maghreb population has internet access
  • Google has invested 1 billion USD to establish a presence in Kenya
  • Microsoft has multiple research units in various countries

Free trade areas for business in Africa

Some examples of free trade associations within African countries include:

  • African Continental Free Trade Area (AfCFTA)
  • Common Market for Eastern and Southern Africa (COMESA)
  • Economic Partnership Agreement between the European Union and West Africa (EPA)

Africa : Space of interesting opportunities for investors

Africa heavily relies on imports from abroad. Approximately 80 % of imported goods in Africa come from countries outside the continent. Therefore, Africa has significant needs for external products in numerous sectors.

Promising business sectors in Africa

Below are some business ventures with high potential for success.

African countries with sector-specific opportunities

Below is a list of African nations offering the most opportunities in various sectors.

With over fifty states, Africa presents clear disparities in terms of business and investment opportunities.

Capmad’s advice before investing in Africa

Before embarking on a business venture in Africa, it is recommended to follow these guidelines :

  • Conduct a detailed market study
  • Develop a business plan
  • Target a high-growth, promising market
  • Secure funding to grow the business
  • Visit the location to better understand the local context
  • Seek partnerships within the country (institutions, companies, lawyers, experts)

Market Selection :

  • Target a region or country with real opportunities
  • Prioritize nations where the business climate is favorable

Ready to invest in Africa?

Capmad invites you to download the dossier for free: Investing in Africa. This report is a comprehensive and concise guide aimed at shedding light on the pivotal role of Africa in the global investment landscape.

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