Top Five Fastest Growing Industries in Africa

One of the most lucrative markets for investors across the world is Africa. In every field, its development prospects are rapidly improving. Countries like South Africa, Nigeria, Benin, Togo, Gabon, Chad, and Ivory Coast take advantage of economic expansion in quickly expanding industries including banking, telecommunications, infrastructure, oil, and others like agriculture and telecommunications.

Nearly ten African nations are among the top ten producers of some of the many mineral resources that can be found around the world. According to reports, Africa is home to 25% of the world’s arable land. The growth prospects of the key African industries—including agriculture, banking, consumer goods, infrastructure, mining, oil and gas, and telecommunications—will be covered in this blog.

Top Five major industries in Africa

Africa has a young, expanding population that is bound to make it the continent with the fastest rate of urbanization in a world that continues to grow more advanced. According to reports, African nations are predicted to have a greater labour force by 2034 than China and India. Consumers, corporate investors, and African citizens with plenty of finances have so far been able to access new platforms thanks to job prospects and quickening technological change.

All of these statistics demonstrate that Africa presents a promising future for international investors, with company spending growth anticipated to exceed $2.6 trillion in 2015 and $3.5 trillion in 2025. Let’s explore the leading sectors in Africa with the most promising growth prospects:

  1. Agriculture

The greatest economic sector in Africa is agriculture, which generates more than $100 billion annually and 15% of the continent’s total GDP. One-third of global agricultural output and seventy-five percent of the top ten countries’ total agricultural output are jointly produced by highly densely populated nations like Egypt and Nigeria.

Here, agricultural growth has enormous potential but is only currently briskly developing at a rate of 2 to 5 percent annually. The primary purpose of Arise IIP’s industrial zones in Côte d’Ivoire and Chad is to process local agricultural goods.

2. Banking

Over the last few decades, the banking industry in Africa has expanded quickly. With roughly $669 billion in assets as of 2008, Sub-Saharan Africa has emerged as a prospective contender in the expanding banking industry. The asset base of North Africa has also increased significantly, reaching $497 billion.

In nations where the government has permitted private banks to open, new firms are also gaining market share. For instance, since 2006, Algeria has welcomed 12 new private sector banks.

Attractive chances will keep expanding the current product offerings even if it is anticipated that the growth ratio will somewhat decline in the upcoming years. Additionally, it will broaden product penetration, include unbanked people in the financial system, and take advantage of the emergence of a new consumer segment to create cutting-edge services.

3. Construction & Infrastructure

The infrastructure growth curve in Africa is still far from finished. Significant expenditures in infrastructure for transportation, electricity, water, and fuel have been announced by numerous nations. As a result, the compound annual rate for infrastructure in Africa increased dramatically by 17%. This enormous infrastructure boom has attracted investors and businesses from both domestic and international businesses.

An economic recession offers a significant impetus for infrastructure expenditures. As a result, nations including Angola, Kenya, Mozambique, Nigeria, and Senegal have declared plans to encourage the development of energy infrastructure. Between 1997 and 2007, this impressive growth assisted in a 75% increase in investments on the continent.

4. Oil and Gas

Many countries around the world rely on the oil and gas exported  from Africa. Due to the high level of demand for it on a global scale, businesses and investors are investing heavily in this industry. The majority of oil and gas projects in Africa are focused on developing refineries, onshore and offshore services, depots, and employment opportunities. Businesses in this industry are expanding quickly in an effort to support their local communities by building infrastructure like schools and roads. As a result, it also contributes to the continent’s economic growth. Examples of large oil and gas producers in Africa include Angola and Nigeria, which profit from this sector and reinvest their profits in the economy to pay for other expenses.

5. Telecommunication

Africa has recently experienced a fresh economic boom as a result of a big turnaround in the telecommunications sector. Only shrewd and tech-savvy businesses can thrive in this industry since it has become so fiercely competitive. However, the telecommunications sector in Africa has enabled online firms to grow and generate revenue. Today, there are more than 400 million telecom subscribers in Africa, bringing additional investors to this sector.