Business

Lucrative Ventures that Startups are yet to explore fully in Africa

Lucrative ventures - cfamedia

According to UN estimates, as of Thursday, March 28, 2019, the total population of Africa is estimated at 1.3 billion, representing 17% of the world’s population.

The African continent is a fertile ground, richly blessed with natural resources, coupled with millions of opportunities and diverse potentials that have not been fully tapped and explored in options of its lucrative ventures.

I am sometimes irked to see millions of Africans migrating to Europe and North American, for a better life, when they could have stayed back in Africa, to tap into the wealth provided by nature for Africans.

I will be taking a look at some lucrative ventures that Startups are yet to fully explore in Africa. These include the following:

Agriculture


The Agricultural sector in Africa needs entrepreneurs with knowledge in technology, to harness the wealth that has not been fully exploited in that sector, on the continent.

Governments across Africa have not done much in response to facilitating wealth creation through agriculture, with over 767 million people living in extreme poverty, but this figure could reduce if more entrepreneurs venture into agriculture.

“The future billionaires in Nigeria will be people investing in agriculture, tech and renewable energy, which are sectors that can create employment, not like the oil sector,” stated Buffy Okeke-Ojiudu, the 34-year-old, whose grandfather was Nigeria’s first Minister of Agriculture.

Fintech 

Credits: Flickr

One of the most lucrative businesses in Africa is Fintech Startup. Investors are trooping into the continent in their numbers to invest in Fintech. Africans need to wake up and start investing time and other resources in finding lasting solutions to basic problems in Africa.

As of 2011, estimates show that 13.7% of Africans have access to the internet with a significant increase of 20% in 2018. This increase arose, as a result of the proliferation of smartphones and mobile data plans, being more accessible and affordable.

Over the years, the traditional model of banking has not been able to successfully keep pace with the ever-increasing African population, thus, they have been slow in offering financial services and this is a major problem in itself.

For some years now, entrepreneurs have been finding solutions to these problems and have created mobile money platforms, such as, Zeepay, Remita, VoguePay, Flutterwave, M-changa, etc., through which money transaction is conducted faster and more efficiently, as long as a smartphone with an internet connection, is available.

Ghana mobile money operator Zeepay, was able to raise $200,000 locally and Flutterwave in Nigeria secured an investment worth $10 million.

Creating more channels for finding a better and more efficient financial service will go a long way in curbing the high rate of unemployment on the African continent.

Exportation of Local Produce 

Lucrative ventures - cfamedia
Africa is blessed with natural resources, ranging from crude oil, gold, timber cocoa, coffee, etc., and over the years, all these produce are exported and have fetched in massive revenue for the country’s treasury.

Entrepreneurs need to be actively involved in exporting local products as one of the avenues of lucrative ventures.

Foodstuffs such as yam flour, cassava flour, pumpkin leaves, Coconut, Bitterleaf, Palm oil, Groundnut, Ogbono, Okro, etc., are viable commodities in high demand in Europe and America.

Logistics 


With the ever-increasing population of Africa and the daily migration to the urban city, the need to have a proper transportation system arises.

High in the ranking of the most populated cities in Africa is Lagos, (Nigeria), 21 million, followed by Cairo, (Egypt), 20.4 million, Kinshasha, (DRC), 13.3 million and Luanda, (Angola), with 6.5 million people.

With many commuters located in one place, there will be congestion and this creates logistic problems, which can, also, negatively affect the delivery of goods and services, as well as reactions to emergency situations by Fire Trucks, Ambulances, etc.

Slowly, entrepreneurs are finding solutions to this problem, for instance in Nigeria, fast-growing courier services, such as Delivery Man, Max, Red Star Express, Okiki Courier Service, etc., have found a way in navigating the traffics and making sure that goods and services are delivered on time.

Another notable logistics company is Twigga in Kenya, the startup assist customers in purchasing commodities in the market and deliver to their doorsteps. Twiga was able to raise $10.3 million in 2016.

Logistics is still in the cradle in Africa, which more entrepreneurs can tap into and explore the opportunities that abound therein.

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