Africa is one of the continents with the fastest-growing consumer markets in the world; with a population of over 1 billion people who are characterized as intelligent and brand-loyal. Experts anticipate that household consumption in Africa will reach $2.5 trillion by 2030 as a result of the continent’s rising rates of urbanization.
The US, France, UK, and China are among the continent’s largest investors, with China’s efforts alone, generating an average of more than 18,000 jobs. This goes to show that Africa undoubtedly offers great potential for investors willing to take a chance.
Highlighting the continent’s potential for investment, here are 10 African countries you should consider investing in and why.
Nigeria is one of the richest nations in Africa, with a nominal GDP of $504.2 billion; owing to its abundant natural resources, human potential, and second-largest GDP in terms of purchasing power parity ($1.3 billion).
The country has the sixth-largest population in the world, the largest economy in Africa, and is a good place to invest. It is estimated that Nigeria had a population of 215 million as of January 2022, with young people aged 0 to 14 accounting for 42 to 54% of that population and those aged 15 to 35 accounting for 36%. The population is anticipated to reach 480 million by the end of 2050.
The West African nation continues to be the most populous and major oil producer on the continent despite having a per capita GDP that is significantly lower than it had prior to independence.
According to economists, Egypt’s GDP will grow by 3.8 percent by year’s end. It is also anticipated that the country’s economy will grow by 5.20 percent in 2023.
Furthermore, the World Bank and the International Monetary Fund, both of which are making significant investments in Egypt’s public infrastructure, are also major supporters of the Egyptian government.
Egypt is a great place to invest because of its geostrategic location, land availability, capacity for solar and wind energy, skilled labor pool, and sizable domestic market. It is perfectly capable of acting as the MENA and Africa’s manufacturing hub. The tangible assets are those.
With $469.1 billion, Egypt has the second-highest GDP in Africa. The country’s GDP continually rose in 2021 despite the pandemic’s negative effects. The North African nation is also a great place to invest because of its diverse economy, which is fueled by fossil fuels, agriculture, and tourism.
South Africa is one of the greatest business hubs in Africa. As the third-richest country on the continent, South Africa is the most industrialized and technologically advanced country on the continent. It has a dual economic structure, with one sector competing favorably with industrialized nations and another in dire need of basic infrastructure.
According to the US Department of State, South Africa has one of the world’s fastest-growing consumer markets and is a “comparatively” low-risk location for conducting business in Africa. Foreign investors are welcome in the Southern African nation, especially in industries like manufacturing and other labor-intensive industries.
Since the end of apartheid, South Africa’s economy has diversified, especially in the services sector, even though the country’s natural resource extraction industry—particularly that of chromium, manganese, gold, and platinum—remains one of the largest, contributing 13.5 billion dollars annually to the country’s gross domestic product.
Foreign direct investment is lucrative in Algeria’s renewable energy, tourism, and liquidity reserve. Oil and gas, which make up 60% of the government budget, are the foundation of the economy of the nation.
Furthermore, depending on the location and size of the project, Algeria offers investors a variety of tax and special taxation advantages under its investment incentive policy, including up to 10 years of exemption from VAT, customs duties, corporate income tax (IBS), business activity tax (TAP), property tax, and other benefits.
By wiping out $902 million in debts it held on behalf of 14 African Union members in 2013, the Algerian government displayed its strength in the financial department.
Morocco’s relatively stable political structure directly contributes to its robust economy; better than any other nation in sub-Saharan Africa.
The most recent World Bank annual rankings place Morocco at number 53 out of 190 economies in terms of business ease. Morocco rose from 60 to 53 in the ranking for the year 2019.
Additionally, the country’s strategic location between Europe and sub-Saharan Africa, good infrastructure, and the stability of its political system and currency all contribute to its relatively low labor costs.
Angola is the richest country in Central Africa and the sixth richest in Africa. Both agricultural land and significant oil and gas reserves are present in the country.
It is the continent’s second-largest oil producer. According to a report on the country’s investment risks and prospects, Trade, transportation, storage, building, and fishing, all contribute to Angola’s GDP. These markets offer potential for growth for investors.
Additionally, Angola’s oil and gas industry is supported by a well-established infrastructure, which enables prospective investors and project developers to cut costs and shorten the time needed to develop new projects.
This nation in East Africa serves as the continent’s logistical, economic, and commercial hub. Young technology entrepreneurs, particularly those in the fintech sector, are the driving force behind this. Additionally, foreign investors are drawn to new businesses that aim to have a positive social impact.
With a healthy economy, high demand for goods and services, and a welcoming business environment, Kenya is a fantastic place to invest in. Tax reforms and financial policies that make it easier to conduct business in the nation have improved the business climate there.
Kenya’s promising growth prospects are also aided by the nation’s expanding middle class and rising demand for high-quality goods and services. Many companies have been able to reduce operating costs and boost profit margins thanks to Kenya’s friendly business environment and strong economy.
Moreover, according to the World Bank’s Doing Business Report, Kenya is the 56th most business-friendly nation.
Due to its status as one of the world’s top coffee producers and the second-largest exporter of flowers from Africa, Ethiopia is a lucrative location for investments.
Ethiopia is one of the wealthiest nations in Africa; it has one of the world’s fastest-growing economies, and is the second-most populous country in the world.
Ethiopia’s agricultural economy has been hampered by droughts, food shortages, and political unrest, but the nation is quickly transitioning to an industrial and export-based economy.
Being the second-largest recipient of foreign direct investment (FDI) in Africa, Ethiopia has maintained a high level of investor interest as one of the top investor destinations on the continent. It is anticipated that investments will also increase as a result of the recent launch of the African Continental Free Trade Area (AfCFTA).
Ghana is one of the most democratic and politically stable countries on the continent.
The country’s economy grew at the fastest rate in Africa in 2019 and is still outpacing predictions from economists.
The tenth-richest nation in Africa is a major producer of natural gas and petroleum, with the sixth-largest reserves of crude oil in Africa and the twenty-fifth-largest reserves worldwide.
Ghana has beef, fish, and poultry, but agriculture—particularly the production of cocoa and gold—contributes to about half of the nation’s GDP.
Farmers’ main source of income is typically from cocoa and its derivatives, which make up two-thirds of its exports. Along with shea, which is used to extract edible fat and coffee, Ghana also produces lumber, palm oil, coconuts, and other products made from the palm tree.
For investors looking for a favorable business environment, committed and progressive government-private sector participation, political stability, transparent regulations, and a vibrant private sector ready for partnerships, the nation has established itself as a top business destination.
Côte d’Ivoire has experienced a steady and robust economic expansion over the past ten years, making it one of Africa’s underappreciated emerging markets.
Venture capitalists and private equity firms continue to show interest in infrastructure projects funded by public and private investment funding. Construction, manufacturing, agriculture, transportation, and energy are other industries in Côte d’Ivoire that investors need to look out for, because they stimulate foreign direct investment.
A stable political climate supports its fair business environment. Additionally, the nation has good infrastructure, including the second-largest seaport in West Africa, airports, and roads.