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When browsing through economic portals or statements of various entrepreneurs, you will probably notice that companies operating in the industrial, ecological, or food sectors have the greatest potential for development on the African markets. However, it is only a sweeping generalization that does not present a proper picture of the possibilities given to companies by emerging markets.
Let’s start with some data: Africa is the second-largest continent (after Asia), in terms of size and population. Even these figures indicate the enormous potential of the local markets. But which industries should be particularly interested in entering Africa’s emerging markets? Here is our list:
Renewable energy sources
Despite being the source of numerous renewable energy resources, they remain significantly under-utilized on the continent. Only 7% of Africa’s hydroelectric power has been harnessed; the continent instead chooses to rely on biomass to meet their energy requirements, despite its environmental hazards. There is a tremendous amount of potential within the renewable energy sector such as hydroelectricity, solar, and geothermal energy that can be tapped into on the continent.
This industry offers a wide range of possibilities not only for companies that look for new markets to sell their IT products or services but also for businesses that search for well-versed employees. As access to mobile devices and affordable internet increases in the continent, African users are turning to digital platforms for their entertainment, medical, as well as financial needs. Some examples of such solutions include Showmax, an online streaming network as well as financial services like TransferZero – an API solution that can facilitate forex and last-mile distribution and BFX – a B2B international money transfer platform, which are particularly useful for companies doing business in and outside Africa.
However, as local companies continue to develop new technological solutions to solve problems, there remains a big gap to be filled in this sector through innovation and international expertise.
Undoubtedly, the road infrastructure in Africa still leaves a lot to be desired. The emergence of quality roads will increase the demand for both local and long-distance public transport. Consequently, the number of people willing to travel longer distances will also increase. At the same time, we can assume that the safety of public transport in Africa will become extremely important. Which industries can benefit from entering the African market in order to develop public transport? All bus and minibus manufacturers, companies experienced in managing long-distance bus lines and providers of online ticketing software.
The example of the medical industry shows perfectly well how difficult access to given benefits fosters creativity. Can’t cover the distance between the patient and the nearest doctor? Schedule an online or telephone consultations. Such services are already in operation and enjoy great popularity.
Mobile dental services are another interesting solution. This way, a doctor traveling from town to town and from village to village can receive patients close to their place of residence.
Regardless of the products or services offered by medical companies willing to enter the African market, there should not be any problems with the lack of clients or customers. There is a great demand for specialist equipment, medicines, and professional services.
And many more
African markets are developing rapidly and are diverse and adaptable. Therefore, you can expect more and more investment opportunities to arise there. What do you think? What other industries should perceive the emerging African markets as a lucrative place to expand their businesses in the near future?