The driving forces: Major industries impacting the African economy
Despite the challenges it's facing, Africa is home to some of the world’s fastest economies. With a fast-growing population and a wealth of natural resources, it has become an attractive destination for investors to capitalize on its untapped potential.
From agriculture to tech, infrastructure to renewable energy, these sectors are poised for growth, and investors who position themselves correctly reap substantial rewards. Here are different industries impacting the African economy.
Agriculture Sector
The agriculture industry is the backbone of Africa’s economy. Housing one-third of the world’s farmable lands, the agriculture sector equips business and employment to the continent.
The industry thrives because of the increasing demand for food, the emergence of new markets, and the use of modern farming methods. Development in farming methods has paved the way to modernize agriculture and uplift young locals to contribute to the industry.
Agri-tech startups held different fundraising activities with the intention of funding farmers. Nigerian startup ThriveAgric had the largest fundraising in the sector totaling $58.15 million. In comparison, Ghanaian-based Agtech Farmerline has also raised $12.9 million to give quality equipment to farmers.
Online Gambling’s Impact on the African Economy
Sports betting is a well-known form of gambling in Africa. This is made possible by the continent’s love and enthusiasm for sports. Online gambling sites have seen a surge in usage because adults and young locals are fond of money action. Locals like using betway casino to wager on sporting events like the World Cup, Serie A, and the English Premier League.
African sports betting is distinctive because it grows with other industries, including IT, agriculture, and banking. The industries as stakeholders have a symbiotic connection and mutually benefit from one another.
An increase in employment opportunities benefits regional economies as well. Thousands of Africans now work for domestic and international companies due to the dramatic increase in betting companies, giving locals job opportunities. Some others even contend that sports betting has produced greater benefits.
Telecommunication and Information & Technology (I.T.) Sector
It has been a long time for the telecommunication and information technology industry to succeed. With the continued accessibility and affordability, the industry's future is promising. African telecom, MTN Group, has a user base of 277.3 million and an annual revenue of $5.6 billion.
Africa's telecommunication and IT sector is competitive, and the industry's major transformation brought in a modern economy in Africa. There are over 400 million African telecom subscribers, enabling telcos and internet providers to prosper and excel.
Mining Industry
The African government diversified the mining industry to raise GDP contribution to 30% in the coming years. With 150 million tonnes of manganese deposits and 1.8 million tonnes of production in 2015, Gabon is the fourth-largest producer of manganese in the world. The nation has a gold reserve of over 40 tonnes, over 2 billion tonnes of iron ore, and various rare-earth minerals.
Banking and Finance
Inspired by a Western source, the African banking and finance sector has thrived for many years. The banking sector has many investments because of advancements like financial technology. Beyond that, the rise of mobile phone usage has brought this on.
A few startups like Chippercash, Fawry, and Flutterwave have been making their name and excelling in their field. The industry’s growth has seen investments and has been receiving investments making it a good business and a source of employment.
Transport and Logistics Industry
With increased domestic and overseas travel, the African government has invested in new and innovative transportation infrastructure. Like transport, logistics is also a great source of business and helps African economies succeed.
According to Business Insider Africa, a Kenyan e-logistics company, Lori, assists over $10B in cargo through the state. This is just one example of businesses helping the growth of the African economy.
African Industries Taking Off
Africa presents an abundance of investment opportunities with their economic sectors’ growth. Different industries continue to strive and attract investors to support businesses and locals. Diversify your portfolio by investing in Africa’s fastest-growing industries.