Is Africa a good investment for the 2020s?

Africa as a continent has seen impressive economic growth in recent years. Many countries in the continent are thriving whilst others are still struggling with civil war or terrorism.

In this guide, we identify the industries and countries that are currently experiencing growth and most importantly are becoming politically stable. In development terms, there are still many hurdles for Africa to overcome but certain countries are doing well, utilizing their natural resources and creating better paid jobs for their populace.

Even with COVID, many African nation’s GDP is growing 5-8% year on year. The highest growth is Libya, which is seeing the Government taking place instead of warlords. The figure for 2020 growth was 131%. However, Libya is an anomaly and is still considered a failed state so it will not be included in this guide.

The energy sector is a major part of Africa, so be sure to check the guide to 25 people to watch in Africa’s energy sector here.

Most of Africa is still reliant on the primary industry (agriculture), but many nations are moving into the secondary sector (manufacturing) and even the tertiary and quaternary sector (services and information services respectively). In this guide we are looking at nations moving into the tertiary and quaternary sectors, so let’s get started.

Many nations in the Centre and South of Africa are seeing impressive economic growth such as Rwanda, Botswana, and Kenya. Rwanda in particular has seen a monumental change in the past few decades. Going from a brutal civil war in the 90s to becoming one of the most stable African countries today, the turnaround is exceptionally impressive.

Through the leadership of Paul Kigame, Rwanda’s thriving industries are banking, construction, and tourism. Rwanda has seen its economy grow 9.4% in 2019 according to the World Bank. With Kigame securing a third term in 2018 until 2025, the country is a shining light and a great role model for other small African countries to follow.

In the Information Technology sector, Kenya is fast becoming a hub. Many tech companies are set up there providing well-paid jobs to the locals. Known as Silicon Savannah, Kenya’s tech scene is booming, attracting foreign capital and providing real-life solutions to African people. Fintech is one industry that Kenya is flourishing in. For example, the company M-Pesa. M-Pesa is a mobile service payments provider that allows users to convert even very basic cell phones into secure money transfer devices. This has increased trade for vendors exponentially, moreover, they offer micro-financing and cross-border payments.

Another industry currently emerging is that of esports and gaming. Most of the promising gamers are from East Africa, but there are many competitions in South Africa such as the FIFA Ekasi Esports series which has an impressive 20K Rand prize pool. As gaming becomes more popular on the continent, so do casino games. Africa has seen a rise in online gambling from casino games like roulette and blackjack due to the increase in ownership of smartphones and computers. Players can use comparison sites such as https://www.casinos.co.za/ to check for the best bonuses, research legal advice about gambling and they also offer support on safe payment methods such as Neteller or easyEFT,

Many African nations are reliant on tourism for income, with COVID 19 proving disastrous for most. With vaccinations globally increasing and with loosening travel restrictions, 2022 will be a big year for African tourism. In the North of the continent, countries such as Egypt will welcome back tourists to the pyramids and luxurious resorts catering to the international community. Smaller nations such as The Gambia, which is relatively close to Europe suffered in the pandemic but offer holidays with great weather, culture, and beaches for a fraction of the price of Europe. Furthermore, many African countries, mainly in the north offer all-inclusive deals for low prices to attract European tourists.

Africa is known for its rich resources, and its beautiful landscapes. Additionally, as the population becomes more educated; especially in the service industry – Africa will thrive. Many African nations now are politically stable meaning they are open for business, meaning a great opportunity for investors to look at this decade.