Gone are those days when Africa used to be the weeping dog in the league of economies to be reckoned with in the globe. Today, Africa’s economic potentials put the continent on a pedestal that can not only be savoured but also tapped from by potential investors.

Even during the blight of the global economic recession that plagued major economies of the world in 2009, Africa’s economy still maintained a positive trend and has been on an upward trajectory ever since. In spite of still being beset by unstable implementation of economic policies, regional conflicts and a lack of infrastructure, the continent has remained an attractive hub and the last frontier of both local and international investors. This has been evident in the average growth of 7% recorded by most countries in the continent.

So what are those major areas of investment opportunities in Africa?

Agriculture

Did you know that Africa is home to 60% of the world’s total uncultivated and arable land? Nigeria alone possesses enough Arable land to sustain over 80% of Sub-Sahara Africa’s population if well utilized. It is no longer news that the world’s population has exceeded the 7 billion mark which therefore makes it imperative for the continent to spur farmers and other relevant stakeholders to action along their areas of laxity.

Africa holds the key to food sustenance in the foreseeable future and this is being reflected by the emerging number of private equity funds aimed at financing agricultural production in the continent.

Tourism

The African tourism industry has been largely dominated by Southern African countries with Kenya and Rwanda also making sway in East Africa. The top three tourism destinations in West-Africa are Cape Verde, Gambia and Senegal. Nigeria as well, despite not being among the top ten earners in Africa has what it takes to own a considerable chunk of the over 1.2 billion tourist mileage in the world. Africa’s pull with respects to tourist mileage is yet to hit the 60 billion mark in spite of the vast tourism potentials in the continent.

Truth be told, Africa’s tourism potentials are still largely under exploited and going by the interests being shown by the likes by Richard Brianson, Flavio Briatore and other business tycoons, Africa might soon begin to set the pace in the tourism industry. Join other stakeholders today

Mining of Solid Minerals

Did you know that Nigeria is estimated to be losing about #8 trillion annually from untapped gold? This is well over the annual budget of the nation and should have been monies accruing to the Federation account from royalties, charges and taxes had it been they were adequately exploited.

According to The Nigeria Extractive Industries Transparency Initiative, NEITI, there are over 40 solid minerals within the bowels of Nigeria that are yet to be exploited. The commercial value of Nigeria’s solid mineral has been estimated to run into trillions of dollars with the largest reserves located in the Northern part of the country. A good number of African countries including Tanzania, Uganda, Namibia and Zambia are also known to be wallowing in the midst of untapped affluence due to an unexploited mining industry. Give it a shot now!  

Infrastructure

This is an area where the continent faces a clear cut deficit. With the emerging economic strength of a country like Nigeria, opportunities abound for private investors to collaborate with the government for investments. Most African countries are currently among the fastest growing in the world with growth rates averaging 7% or thereabout. Potentials abound a lot in this sector and investors can key into this African project.

Fast moving consumer goods

Africa’s burgeoning middle class has led to a voracious demand for consumer goods with consumer spending already surpassing the $1 trillion mark.

The ever growing splurge for consumer goods in Africa is evident in the demand for Shoprite’s expansion in several African countries. It is only a matter of time before other retail outlets in Nigeria and other African countries will take the initiative.

The industry is still quite fertile and with the burgeoning middle class, the demand is likely to be on the increase. Tap from it now!

Oil and Gas Industry

Even with the dwindling fortunes of major oil producers in Africa, the oil and gas industry remains a huge sector for willing private investors. In spite of the immensely huge capital needed to venture into the industry, oil drilling and exploration still stands as an extremely profitable venture. Other investment opportunities in this sector include equipment leasing, petroleum refining, off-shore trading, fuel haulage and logistics, gas wholesaling etc.

Power

This is another area with bounties of investment opportunities. Nigeria’s power supply for instance, currently averages 3,500 megawatts versus a suppressed demand that is estimated at 10,000 megawatts. Investors who key into the power sector in Nigeria alone, stands the benefit of penetrating over 65% of West Africa’s market. Similar investment opportunities also abound in several Africa countries still encountering deficit in their power supply.