PROMISING BUSINESS SECTORS IN AFRICA SET TO PRODUCE MILLIONAIRES THROUGH IMPACT ENTREPRENEURSHIP
The dream of becoming a millionaire in Africa is no longer wishful thinking but very doable and achievable. The money doesn’t have to remain within the circles of shady politicians, corrupt bureaucrats or disreputable businessmen. Anyone can be a millionaire today as long as he/she is willing to work smart and hard in the right business venture that suits his/her vision. Thankfully, the present generation of Africa upcoming millionaires is more interested in creating and impacting value in the society rather than focus on getting rich. They look to improve people’s lives and make Africa great again. This new form of entrepreneurship called IMPACT ENTREPRENEURSHIP is the new way to make money while doing good at the same time.
This form of entrepreneurship has proven over time that one can make profit and have aspirations without causing harm to others or the environment. Unlike the “Old school” millionaires, this budding generation of entrepreneurs is not concerned with the finite resources in the continent – gold, copper, oil, timber, diamonds and the likes. They are far more interested in proffering solutions to the problems of the continent which they perceive as a fertile ground to make real and clean money.
We do not shy away from the fact that Africa is submerged under piles of problems which has resulted in the deplorable state of the continent – high rate of unemployment, hunger, inadequate electricity and much more. However, focusing on these problems and more, upcoming millionaires see the opportunities in these problems and are set to unlock massive streams of wealth, jobs and prosperity for the continent.
Are you one of such aspiring millionaires passionate about Impact entrepreneurship? Here are some promising business opportunities in Africa that will place you on the pedestal of greatness:
- Urban Logistics: The rural areas of the Africa continent is fast diminishing as more and more people keep migrating to the cities. This migration rate is alarming because of the lack of well-diversified transport systems in most cities and this would make moving around town a very frustrating venture. Already on top of the logistical nightmare, some African entrepreneurs are proffering solutions to this. For example, With the use of technology, Twiga Foods in Kenya has been able to provide food delivery service to the doorsteps of customers thereby saving them a trip to the market. Having raised $10.3 million this start-up is considered to be the largest distributor of a number of basic food staples in Kenya. MAX in Nigeria is not left out, using its on-demand motorcycle courier service for clients who have critical deliveries and cannot withstand the traffic of Lagos roads. So many other companies and start-ups have ventured into this field of urban logistics but there is still ample room to accommodate more.
- Healthcare Services: Most public hospitals in Africa are poorly funded and this promotes varieties of healthcare issues among the people. Looking to the government to fix the healthcare sector may take a longer stretch of time. People travel on a daily basis in search of better health care services in other places like India, the Middle East and Europe. This steady increase in outbound medical tourism costs Africans millions of dollars every year. To curb this, Africa is in dire need of total transformation of its healthcare industry spear-headed by the private sector as it necessitates the innovation of local entrepreneurs and investment from local and international investors. Thankfully, this is already taking place. Lifebank in Nigeria, a startup develops clever ways to supply vital blood supplies to hospitals in busy cities, has raised about $0.2 million to support and expand its operations. Starting a chain of low-cost hospitals with just $3,000, Kenya’s Dr Maxwell Okoth, a young medical doctor and entrepreneur have set up a multi-speciality hospital with cancer centre, radiology centre, pediatric unit, and several other specialities. More entrepreneurs keep looking for ways to counter the challenges faced in the healthcare sector in Africa and this will definitely unlock a vast number of job opportunities.
- Waste: One very uncommon practice not carried out in Africa is RECYCLING. Burned, buried or thrown away, most of the waste produced in Africa are not recycled to manufacture new things instead, more than 80% of solid waste produced on the continent ends up in landfills or gets dumped in water bodies, causing more problems for the continent. Talking about solutions, South Africa has converted most of its waste into animal feed. Having raised up to up to $30 million in funding, AgriProtein, a business that specialized in growing maggot from waste and processes them into a highly nutritious protein supplement that substitutes fish meal in animal feed, has made its name as one of the best-funded insect farming businesses to date. Ethiopia is not left out as they make the most of their waste by converting it to electricity. The Repi waste recycling factory in Addis Ababa will produce 50 megawatts of electricity from waste collected from across the city. The facility is expected to supply 3 million homes with electricity, and avoid the release of millions of tons of CO2 to the atmosphere.
- Affordable Housing: The highest rate of rural-to-urban migration in the world is experienced in Africa and it is projected that by 2030, up to 50% of the continent’s populace would most likely be living in towns and cities. The question therefore is where are the houses to accommodate these people? The housing deficit in Nigeria is estimated at 2o million homes while South Africa has a deficit of 2.3 million homes. In the light of this problem comes a great opportunity to not only proffer solution but also make good money. This housing crisis has opened us opportunities for various industries – from cement production to furniture making, building contractors and mortgages. Little wonder why Africa’s richest man Aliko Dangote expanded his cement production business across several countries in Africa and this has significantly increased his net worth. If the cement business doesn’t look achievable to you, ever considered durable alternatives like converting shipping containers into low-cost homes? Building contractor, Berman-Kalil in South Africa and entrepreneurs like Denise Majani in Kenya are already into this business of converting shipping containers into low-cost homes, creative residential and office accommodations at half price the cost of contemporary housing. With alternatives like this, the cost of building homes has been significantly brought down, making them affordable for most people.
- Crowdfarming: Agriculture is still a virgin field of wealth in Africa. According to the United Nations, Africa’s agribusiness industry is expected to be worth $1 trillion by 2030. With the huge domestic market, 60% of the world’s unused arable lands, abundant of labour resources, and favourable climate in her possession, the Africa continent is no doubt covered in riches. Unfortunately, not many people are willing to explore this opportunity leaving Africa to spend over $30 billion on food imports annually. With mechanized farming and great funding, agriculture is bound to open up a volcano of riches that would go a long way in developing the continent. Farming is not meant solely for the smallholder farmers in rural areas. If a majority of the African population go into farming, wouldn’t that significantly boost food production, cut down the continent’s food import bill, and make more money for both the investors and the farmers? This business model is called “crowd farming”, and it’s a trend that could totally transform the face of agribusiness in Africa. FarmCrowdy and ThriveAgric are the two crowd farming platforms in Nigeria that enable working-class Nigerians to crowd-sponsor farming projects and earn a share in the returns at harvest time. Last year, FarmCrowdy raised $1 million from US investors to expand its operations. In Somalia, Ari.Farm is an online marketplace and crowd farming platform that enables investors from across the world to play in the Somali livestock market. In South Africa, Livestock Wealth, helps investors to own pregnant cows, and track them through a mobile app. Once the calf reaches seven months, it is sold to a feedlot or slaughterhouse and the return for the beef goes to the investors. As Africa’s population doubles over the next 30 years, the business opportunities in Africa’s agribusiness space are very likely to produce a league of millionaires who made their money while pulling thousands of farmers out of poverty.
Africa is indeed a land flowing with milk and honey. Let us make the most of these vast opportunities and more and transform the face of Africa.