From East, West, South and North Africa Africa Facts Zone brings you some of the untapped business and investment opportunities in Africa.
Investment opportunities in Africa (Namibia)
Namibia is a big but sparsely populated country. Namibia has one of the best solar and radiation profiles in the world, and with the cheap cost of land, it is well-suited for large-scale solar farms.
Namibia’s electricity regulator is liberalising the system quite a bit so independent power producers can come in, build, and sell directly to customers. In the future, this will go cross-border, so that Namibia can export electricity to the surrounding region.
Namibia’s water sector is also one of the exciting investment opportunities in Africa; Namibia is a very dry country, and a lot needs to be done to make the country sustainable from a water perspective. At some point, large-scale water desalination and piping water across the country will be critical, and there are some studies underway on this. With increasing urbanisation, cities like Windhoek – which is home to approximately one third of the country’s total population – are rapidly running out of water
Namibia is also well positioned to serve the Southern African region as a logistics hub and act as a gateway to nearby landlocked countries such as Zambia, Zimbabwe, the Democratic Republic of Congo and Botswana. The Walvis Bay port has been massively upgraded and Namibia has some of the best roads in Africa. There is already a shift to using the port of Walvis Bay for copper exports from Zambia rather than the ports of Durban or Dar es Salaam. There are a lot of opportunities here to facilitate cross-border trade.
Investment opportunities in Africa’ Private education in Nigeria and Ghana
Families prioritise educating their kids to the best extent possible and will send their children to as good a school as they can afford. Historically, the best schools were government-run although, over the years, the quality of public-sector education has declined. There have always been private schools in Nigeria but most were linked to religious institutions; now there’s a growing number of for-profit schools. Nonetheless, there is still a deficit of quality educational facilities in Nigeria and Ghana, with demand for good schools far exceeding supply.
Investment Opportunities in Africa (Kenya)
Ready-mix concrete, concrete blocks, PVC and PPR pipes as well as gutters and wastewater removal products is one of the few investment opportunities in Africa that enjoys little competition in Kenya given the difficulty and cost of shipping building blocks from Nairobi or other locations around the world.
One of the most untapped investment opportunities in Africa is the of available resources to grow high-quality agricultural produce that will drive the manufacturing sector.
The quality of Ethiopia’s agricultural produce is oftentimes not good enough for food processing, which is why so many products are still imported. For example, tomatoes.
Ethiopia exports fresh tomatoes but then imports ketchup. That doesn’t make sense because ketchup is a relatively easy product to produce. What then is the problem?
The problem is that the quality of tomatoes grown in Ethiopia is not good enough to run a profitable ketchup plant.
Zimbabwe is also fantastically well-endowed with minerals and natural resources, has a wonderful climate, and good water resources, dams, and soils.
One of Zimbabwe’s greatest assets is its human capital – it has some of the most well-skilled, well-educated, and hard-working people.
Zimbabwe gold mining sector and cereal crop production offers one of the best investment opportunities in Africa.
There are large amount of uncultivated land in Zimbabwe, and while there are some serious land issues, if you can overcome them the country has excellent large-scale arable landholdings, along with the skills and the infrastructure needed to support intensive agriculture, which you don’t see in many other African countries.
South Sudan offers very selective investment opportunities in Africa.
Investors who are looking to make a huge impact – investing there involves a lot of hard work, risk and resilience. The only area where we can see a reasonable risk-return profile is in the forestry sector.
With high rainfall, good soils, very good temperatures, and a lot of space, South Sudan offers a perfect climate and a good opportunity for growing plantation teak.