ENTREPRENEURIAL SERIES

 ENTREPRENEURIAL SERIES

11 Business Opportunities in Africa That Will Make More Millionaires in 2016

 (Part 4)

9) Payment Solutions

source:google.com

Every year in Africa, over $100 billion in transactions are still done in cash. This presents a huge and lucrative financial services opportunity for savvy entrepreneurs.

Since M-Pesa was introduced in East Africa, the transformational mobile-based money transfer and payment service has proved to be phenomenal in Kenya and Tanzania, where the platform handles over 200 million person-to-person transactions every year.

In other parts of Africa, there is a huge scramble for Africa’s next big money transfer and payment service.

In Nigeria alone, several promising businesses are jostling to dominate Africa’s biggest economy. Some of the top contenders are Paga, PayAttitude, SimplePay and PayWithCapture.

Less than six months ago, Paga attracted a $13 million investment to expand its business within and outside Nigeria. It’s a huge bet that has the potential to really pay off

Payment solutions will be a key area to watch in 2016.

10) Real Estate

source;google.com

Africa’s real estate market is a multi-billion dollar opportunity, and several new millionaires will build their fortunes in this market.

In almost every corner of the continent, real estate projects are emerging. The biggest attractions are high-rise hotels and office buildings, residential homes and apartments, and shopping malls.

In Nigeria alone, there is a shortfall of 17 million housing units, with a funding requirement of $363 billion.

In Angola’s capital, Luanda, prime office rents are among the highest in the world at US$150 per sq. meter per month.

In Mozambique, property prices at the sea ports, particularly for warehouses, are one of Africa’s most expensive.

The key markets for real estate on every investor’s agenda are Angola, Nigeria, Egypt, Mozambique, South Africa and Kenya. All of these countries are experiencing a real estate boom like never before in history.

Africa’s large and youthful population, an expanding middle class, increasing urbanization, influx of expatriates and multinational companies are the key drivers of demand for both commercial and residential real estate.

11) Startup financing

source:google.com

Investing in startup and early-stage businesses is on the rise globally, accounting for 67 percent of all venture capital (VC) funds in North America and increasing 19-fold in Europe.

Across Africa, start-up companies are attracting the interest of venture capital, private equity, social impact funds and angel investors who are looking for higher returns on invested capital.

In 2015 alone, the amount of capital invested in African startup businesses was roughly $0.5 billion. And in 2016, this figure is expected to double.

As Africa’s young entrepreneurs continue to come up with brilliant business ideas that have the potential to significantly disrupt both new and established markets, it’s almost impossible for investors to ignore the lure of attractive investment returns.

As of January 2016, there are now more than 200 investment organizations, firms and platforms that are focused on investing in early-stage African businesses.