Top 5 Industries ready for disruption in Africa

 

Africa has seen tremendous economic growth of late, posting growth rates of up to 6%. Six of world’s fastest growing countries were African.

As a continent imbued with many natural resources, one would expect most of the growth to come from this sector. But Africa’s story is not limited to extractive industries, other sectors hold promise. Here at wisinomad, we would like to share the top 5 industries poised for major returns across the African continent.

 

Technology:

Overall mobile subscriber penetration has reached 44% according to the GSMA. The access to mobile connectivity empowers consumers  and drives economic growth. The technology enhances access to many essential services like education and health, and helps engage the world. Technologies are being built that revolve around these central problems.

The unique situation of Africa inspires novel solutions that have yet to be explored in other markets. Rwanda is even testing drone delivery service for blood, cutting down wait times that used to be four hours to just fifteen, and thereby saving lives.

There’s ample room to innovate in a market experiencing the demographic dividend, and that is less saturated. Industries thought to be impermeable to change like health and banking have found a new lease of life in the African continent.

 

Banking and Finance:

Telecommunications all over Africa have made a foray into a very lucrative market. Mobile money. M-pesa and Ecocash are perhaps the most prominent. This speaks to the large numbers of Africans who have previously lacked access to financial institutions. Mobile has provided an easy means by which people can now transact beyond cash.

 

The move to a more formal structure opens up ancillary services such as savings and mortgages to sections of people who previously had no access. While some uncertainty exists on who should regulate these new forms of financial institutions, it presents opportunities for entrepreneurs seeking to provide financial services.

Venture capital and Investment Banking are also poised for great results as Africa sees record companies being started in various industries as well as consolidation in more mature sectors.

 

Transport & Logistics:

While infrastructure spending has been substantial throughout Africa, most African cities do not have well-diversified transportation systems. Mckinsey in 2011 estimated that sub-Saharan Africa would need more than $180 billion in infrastructure investment in order for Millenium Development Goals to be achieved.

 

Entrepreneurs are looking for new ways of tackling these challenges at a consumer and enterprise level. Providing reliable means for goods and services to traverse the continent has proved complex, but a profitable venture as seen by the increase in the number of budget airlines now in the African skies.

 

Energy:

Africa’s economic transformation will need to be powered. With more people being lifted out of poverty than at any other time, and having the disposable income to purchase more goods, there will be an increase in the demand for energy. Similarly the growth of other industries will need more energy that can currently be provided by Africa’s output.

Renewable energy startups have been formed to augment more large scale projects in hydro and thermal power stations. Energy considerations are at the top of any economic venture, and investments within the space should be applauded.

 

Manufacturing:

With manufacturing in China becoming more expensive  and a tariff war on the horizon, Africa is positioning itself as the next manufacturing destination. And with a growing population that is getting more spending power there is no reason to not envision this.

Countries like Ethiopia are making tremendous investments to make this a reality. Many local and multinational consumer companies are already thriving in Africa and delivering handsome returns to their shareholders, and some companies are already moving their manufacturing base to Africa.

 

 

There’s no doubt that technology is evolving at an ever-increasing pace, and that innovation over the past 25 years has spurred massive changes across industries.

wisinomad is inspired by the growth across these sectors and wants to be part of the growth narrative by bringing together an inspiring community of people and institutions who are in a sense pushing the world forward.

 

To learn more about wisinomad program, visit www.wisinomad.com, and send in your application

 

 

 

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