Recently I shared with you agribusiness and food business opportunities for Africa in 2022. Judging by your engagement I realized people must be passionate about business development in Africa. That is why today I am discussing 3 more business ideas for Africa in 2022. These are business ideas that can be pursued in virtually any African country. When you look at the business ideas you will notice they mostly cover overlooked gaps. Now is the time to take advantage of such gaps to make money. The great thing is that you get to make money whilst creating value for the African continent.
I am currently working on something relating to organic farming certification in Zimbabwe. Through that experience and the observations I have made, there are big prospects in organic. This is not just for Zimbabwe alone but all across Africa. The growth of organic farming worldwide has been projected to stand at almost 15 percent every year. This might even be exceeded because the demand for organic food is surging.
You must appreciate how more environmentally conscious people are becoming. For a while before, it used to seem as if that was confined to just developed countries alone. As much as the demand for organic food is higher there, demand is steadily going up here in Africa as well.
The broader objective of organic foods is to protect the environment right. Yet in the process, human life is also preserved if the environment is in good shape. Organic is much more nutritious too and fetches higher prices on the market. Getting capital investment is also exponentially easier when you pursue organic farming. There are so many social impact investors waiting to bankroll organic farming businesses.
The export market remains a core market but the African market is increasingly appreciating organic foods more. There are several other business prospects in this field. For example, organic certification oversight is still largely limited to foreign certification bodies (usually from countries exported to). Setting up such bodies on the African continent can even make organic farming more widespread. Getting involved in that is also a lucrative business idea to pursue.
Commercializing Indigenous Foods
Indigenous foods come in many forms e.g. crops and fruits. These vary from country to country and you are mostly aware of them in your respective country. In Zimbabwe, for example, there is a long list of indigenous crops and fruits. Most of such foods are regarded as inferior to exotic foods. Just look at the number of fruits indigenous to Zimbabwe. Chances are you will never find them on the shelves of local supermarkets. Some smart entrepreneurs are changing this narrative in Zimbabwe. Regardless, we need to see more people getting into the commercialization of indigenous foods. Look at what is being done with the baobab fruit (mavuyu in Shona), for example – powders and smoothies being made out of it. I bet you there are so many hidden products yet to be discovered in most indigenous fruits. This can be a huge hit for the export market too. Commercialization of indigenous foods can be, at the very least, just innovative packaging but there is more of course.
Businesses Serving Low To Middle Income Earners
I could have zoned in on just one area but let me share this broadly. There are so many industries in any country. You have the financial industry, property development, hospitality, and many more. If you do a study you will discover an uncomfortable trend. Most products or services being offered tend to favour high-income earners more. This excludes a greater part of the population.
At first glance, you would think it is always more lucrative to sway more towards high-income earners. However, this is not always true. It might even make better business sense to target low to middle-income earners. If priced rightly, you can end up pushing volumes thus realizing more returns. High-income earners can even gravitate towards you. So, there is potential in pursuing business ideas like that in many industries.
I remember last year using a particular accommodation service provider when I would travel to Harare. The cheapest room was going for US$40 per night but the quality of service and amenities was exceptional. I even wondered if they are operating sustainably since I felt the charges were somewhat too low, but they are. I even noticed the place is always fully booked, daily. It turns out their pricing appeals to anyone from low to high-income earners.
Start looking into businesses you can start just by targeting low to middle-income earners. Another industry to consider is healthcare; there are infinite possibilities. If you do this in Africa you will not only thrive but you will even become disruptive in the industry in question. The business idea might not even be that unique; your value proposition will be affordability.
There you go; an additional 3 business ideas perfect for Africa in 2022. I can never state enough the boundless potential you can unlock in Africa this year. Never mind the challenging political and policy-related landscape, get to work! Let us make money and build Africa into a jewel of the world.