As an entrepreneur, you can never go wrong with untapped business opportunities in Africa that meet the continent’s needs.
The unexplored businesses in Africa include BPO, affordable housing, data storage and cybersecurity, internet access and communication, food processing, agribusiness, off-grid solar development and supply, e-commerce, real estate, low-cost healthcare, and green revolution.
According to Business Insider, Africa is set to be the fastest-growing region in the globe. This continent boasts a ready market of over 1.4 billion people which exceeds the EU. With such a broad market, demand for the right product is inevitable.
In this write-up, we’re going to explore available business opportunities that you can take advantage of and prosper in Africa.
To give you a thorough understanding about these business, we’ll cover the following;
- The business opportunity in detail (capital and return values)
- What you need to start these business,
- How to stand out from your competitors and dominate the market.
Let’s take an inside look!
Easy Untapped Business Ideas in Africa That Are Profitable.
In a rush? Here’s a summary of the 11 untapped business ideas in Africa you can invest in today.
|Business Idea||Initial Capital||Expected Monthly Return|
|1.||Internet Access and Communication||$ 3530 – $ 8,600||$500 and above|
|2.||Data Storage and Cybersecurity||$11,400 – $19,100||$2000 and above|
|3.||Business Process Outsourcing(BPO)||$5400 and above||$1,000 and above|
|4.||Agribusiness||$500 and above||$300 – $1,000|
|5.||Food Processing||$1,000 and above||$ 300 and above|
|6.||Solar Development and Supply||$5,200 and above||$1,000|
|7.||E-Commerce||$100 and above||$200 and above|
|8.||Green Revolution||$100 and above||$200 and above|
|9.||Real Estate||$5,000 and above||$70,000 – $124,000(annually)|
|10.||Low-Cost Healthcare||$5,600 – $8,900||$1,000 and above|
|11.||Affordable Housing||$10,000 and above||$2000 and above|
1. Open an Internet Access and Communication Company
(Initial Capital $ 3,530 – $ 8,600)
Internet access and communication deal with net distribution and other forms of communication like bulk SMS. With almost everyone hooked to their devices for work or leisure, internet and communication services have become a basic need.
Opening this venture will earn you a monthly income of $500 and above.
Internet Access and Communication Requirements
To start an internet access and communication company, you will need the following:
- Permits and licenses costing from $50
- A strategic location
- Fiber provider
- Relay site
- Hardware (switches, servers, computers, routers, litebeams, satellite antenna, cables, UPS unites, and generator) costing from $1,880 to $ 6,400
- Network costing between $ 1,600 and $ 2,150
Tip: To succeed in this business, you need to offer your services in unexplored cities within your country. Again, ensure your internet is stable and affordable as people are glued to their devices throughout.
2. Start a Data Storage and Cybersecurity Business
(Initial Capital $11,400 – $19,100)
Data storage and cybersecurity entail providing ‘storehouses’ and protection for individuals and companies.
For instance, banks, hospitals, and site owners have their clients’ details but may experience storage and data protection challenges.
Establishing a data storage and cybersecurity business can solve these problems while earning you a monthly income of $2,000 and above.
Data Storage and Cybersecurity Requirements
To start a data storage and cybersecurity company, you will need the following:
- Computer systems costing from $2,000 – $5,000
- Relevant tools (software) costs $3,000 – $5,000
- Website from $1,000 to $3,000
- Startup Costs ranging from $100 to $200
- Licenses and Insurance between $200 to $600
- Marketing Media will cost from $100 to $300
- Data storage system
Tip: Companies and businesspersons are looking for a reliable data protection solution. Offering top-quality storage and security solutions will help you build trust and emerge as a top dealer in your country and continent.
3. Start a BPO (Business Process Outsourcing) Company
(Initial Capital $5,400 and above)
Business Process Outsourcing entails subcontracting some business operations to third parties.
A BPO business ensures companies receive the services or products they need, from inside or outside the country.
Why open a BPO company in Africa? Start-ups are looking for affordable accounting and delivery solutions that you can handle with a BPO.
BPO Business Requirements
To open a BPO business, you will need the following:
- Business registration and license cost between $300 and $1,000
- Marketing from $100
- Equipment and team including servers, phones, computers, power backup, furniture, lighting, office, employees, management, and stable internet costing $5000
Tip: Offering top-notch services will help you build a reliable system that will attract endless referrals and recurrent customers. Setting up an online office will help you attract clients from different countries.
4. Start an Agribusiness Venture
(Initial Capital $500 and above)
Agribusiness revolves around food production, for instance, beverages and fruits. And with the high demand for products like coffee, eggs, and avocado overseas, you can make between $300 and $1000 per month.
With a projected growth of 10.82%, Africa’s food market is expected to hit US $1410 billion in 2028, making it a perfect investment opportunity.
To invest in agribusiness, you will need the following:
- A piece of land (lease or invest in your own) from $60 yearly
- Livestock or (plants and fertilizer) from $1,000
- Other agro-vet products costing $50 and above
- Employees or casual laborers vary with country and work hours
Tip: Before entering any agribusiness line, learn the processes involved exhaustively to ensure you minimize risk and increase profits. Again, stay updated on the different developments in your field to ensure you produce the best products.
5. Open a Food Processing Business
(Initial Capital $1000 and above)
Food processing entails changing agricultural products into consumable forms or for storage and cooking. For instance, you can process cocoa beans into powdered milk, flour, or candy bars.
Africa is yet to own its products as the continent cannot process products like coffee and tea leaves to meet global standards. Venturing in this space will allow you to access the extensive customer base globally.
Food Processing Requirements
To start a food processing business, you will need:
- Licenses and permits costing from $100
- Health and medical clearance from $300
- Business registration from $100
- Employees vary with state
- Firm or operate from home
- Processing and packaging supplies from $500
Tip: Branding will help you stand out from your competitors, attracting a massive client base. And providing unadulterated products like honey makes you the best in the market, raking in $300 and above.
6. Establish a Solar Development and Supply Business
(Initial Capital $5,200 and above)
Solar development and supply business provides affordable and convenient power supply. Setting up a solar business can earn you a monthly income of $1,000 and above.
The inconsistent electricity availability makes solar ideal, especially for businesspersons like chicken-rearing farmers. Investing in solar energy would see you explore the 40% globe’s potential.
Solar Development and Supply Business Requirements
To establish a solar development and supply business, you will need the following:
- Licenses which will cost you from $100
- Equipment $5,000 and above
- Shop from $100
- Apprentice varies with place and working hours
- Logistics, including transportation and installation
Tip: With more people looking for better power options, marketing is key. So, start by advertising your services in areas with no electricity and provide quality services to become an authority in the industry.
7. Set up an E-commerce Business
(Initial Capital $100 and above)
E-commerce businesses allow you to sell goods and services online, making it a convenient enterprise to run if you have another job. This venture can earn you $200 and above per month.
E-commerce business is a fast-growing venture in Africa with platforms like Jumia attracting tens of millions of monthly visitors in different countries. So, you can explore unique products and thrive in this field.
E-commerce Business Requirements
To start an e-commerce business, you will need the following:
- A website costing from $100
- Payment methods
- Logistics like delivery
Tip: To succeed in e-commerce, you must implement an effective marketing strategy online. In addition, deliver what your clients order by displaying exact images. This will create a good impression for your company, building a large client base.
8. Establish a Green Revolution Business
(Initial Capital $100 and above)
Green revolution businesses provide eco-friendly or green services and products.
It’s a diverse industry with examples such as biogas production, recycled furniture, and recycled construction materials. All these cover sectors in demand including energy, construction, and art.
This business can earn you $200 and above every month.
Green Revolution Business Requirements
To start a green revolution, business demands very little capital due to its diversity. So, what do you need to open your Green Revolution company?
- A niche, for instance, the energy, craft, or textile industry
- Initial stock or production materials
- Selling point
Tip: Producing appealing and durable products will help you stand out from the market. Also, advertising on social media accounts such as Facebook, Instagram, and TikTok will increase your clientele.
9. Start a Real Estate Business
(Initial Capital $5000 and above)
The real estate business is meeting the need of the hour. Buying a large piece of land and subdividing it to sell can make you a fortune.
Although it is not a little capital business, the growing demand for property in Africa makes it worth the risk.
As a real estate business owner, you can earn from $70,000 to $124,000 annually.
Real Estate Business Requirements
To open a real estate company, you will need the following:
- Market research
- Business plan
- Business registration
- A website
- Initial capital (varies depending on the number of properties, each plot’s price, and office)
Tip: Networking is the most effective strategy in a real estate business as it links you to prospective clients. When combined with integrity, it pulls a good client base for you.
10. Open a Low-Cost Healthcare Facility
(Initial Capital $5,600 – $8,900)
Low-cost healthcare business provides affordable health services from examination and diagnosis to treatment solutions. Investing in this field will make you a monthly income of $1,000 and above.
Why invest in affordable healthcare? Most African people are not well-off hence they don’t own health insurance and therefore seek low-cost medical care.
Low-Cost Healthcare Business
You will need the following to start an affordable healthcare business:
- Registration fee from $50 to $400
- License costing $50 to $3,000 annually
- Equipment costing from $5,000 and above
- Rent $500
Tip: Succeeding in this field demands you set yourself in a strategic location. In addition, you should provide quality healthcare to stand out from your rivals.
11. Start an Affordable Housing Company
(Initial Capital $10,000 and above)
Affordable housing business focuses on providing inexpensive options for people aiming to be homeowners. You can earn from $2,000 depending on the type and number of houses you provide.
Construction of permanent houses is expensive, making it difficult for most Africans to realize their goals. But with options such as tiny homes or container houses, they can accomplish their desires.
Affordable Housing Company Requirements
To establish an affordable housing company, you will need the following:
- Business registration will cost you $1,000
- The first property costing from $10,000
- Marketing will cost you from $50 and above
- An office may cost you $100 or higher
Tip: Affordable housing can be capital-intensive, like real estate. Hence, it’s important to partner with another investor or acquire grants. Again, market your company across all social media platforms to increase your online presence.
Frequently Asked Questions
1. Which Business is Most Profitable in Africa?
Agro-processing is one of the most profitable businesses in the continent. There’s a high demand for value-added agro products such as cocoa, cassava, yams, and maize, making this sector the in-thing.
2. Which Country in Africa is Easiest To Do Business?
Mauritius is the easiest country in Africa to do business, according to Statista’s data of 2020. The business score in this country was 81.5%, followed by Rwanda, Morocco, and Kenya with above 73%.
3. What Are the Fastest Growing Business Sectors in Africa?
The agriculture industry, real estate, renewable energy, finance, healthcare, and oil businesses are the fastest-growing sectors in the continent. If you’re looking for the most lucrative opportunities, here are 10 simple untapped areas with huge profits.
Finding the right business opportunity in a fast-growing continent like Africa can be daunting. Fortunately, with the untapped business opportunities in Africa, you can accomplish exceptional financial milestones.
From internet provision and solar development to business process outsourcing, these are the businesses of the hour. Depending on your educational background and capital amount, you can invest in any of these businesses and become a millionaire.
Which of the above do you think is the most suitable business?