ENTREPRENEURIAL SERIES
11 Business Opportunities in Africa That Will Make More
Millionaires in 2016
(part 1)
The latest Africa Wealth Report by
New World Wealth reveals there are now just over 160,000 millionaires in
Africa.
Interestingly, from 2000 to 2013, the
number of millionaires on the continent grew by more than 145 percent, compared
to the worldwide growth rate of 73 percent.
In recent years, most of the ‘new
millionaires’ have been young entrepreneurs and investors who have created
promising businesses and invested in lucrative sectors of Africa’s fast-growing
economies.
This year, more new millionaires will
join the club.
1) Solar Power
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| source.google.com |
Solar energy is one of Africa’s most
abundant natural resources. Most parts of sub-Saharan Africa enjoy more than
300 days of free God-given sunlight every year.
Still, over 600 million people on the
continent, especially in rural areas, don’t have access to reliable
electricity. In most cities and towns, power outages are the norm and people
often have to rely on noisy petrol and diesel power generators.
Solar energy is free, absolutely
clean and abundant. And it provides the best alternative for people in remote
parts of Africa who are out of reach of electricity grids.
Interestingly, some smart
entrepreneurs are rising to the challenge of lighting up Africa through solar
energy, and are very likely to join the millionaires club in 2016.
Off Grid Electric, a solar energy
provider in Tanzania recently raised $25 million from international investors
and won a $5 million grant from USAID. The company is already on track to
provide solar power to 1 million homes in East Africa by 2017 and has recently
expanded into Rwanda.
M-KOPA, which provides
‘pay-as-you-go’ solar power systems has attracted investments of up to $40
million. This Kenyan-based business has already provided solar power to nearly
300,000 homes in Kenya, Tanzania and Uganda.
2) Agribusiness
Agribusiness is Africa’s untapped
goldmine, and a major potential source of millionaires in 2016.
According to a World Bank report,
Africa’s agribusiness industry is expected to be worth $1 trillion by 2030.
With up to 60 percent of the world’s
uncultivated arable land, fertile soils, abundant labour, and all-year
sunshine, sub-Saharan Africa surely has the potential to become the world’s
biggest exporter of food products.
Even if Africa decides to ignore export
markets, the continent’s one billion people provide a huge and ready market for
agribusiness.
Still, every year, African countries
import more than 70 percent of wheat consumed, over 300,000 tons of chicken and
spend more than $10 billion on imported grains, especially rice.
Interestingly, more African
entrepreneurs are tapping into the vast opportunities in Africa’s agribusiness
market.
And with the continued harsh impacts
of low crude oil prices in 2016, sleeping agribusiness giants like Nigeria and
Angola are finally putting a strong focus on agribusiness as a means to
diversifying their economies. This means that governments in these countries
are now more open and supportive of agribusiness initiatives.
source:smallstarter.com
