Africa is quickly becoming the most popular market to invest in. The World Economic Forum has designated Africa as home to more than half of the world’s fastest-growing economies. It offers abundant natural resources like Uranium, Platinum, Gold, oil, and diamond reserves. Moreover, the young educated workforce, improved government, and growing economic potential attract new investors.
The most promising sectors for investment in 2022:
- Oil and natural gas in Eastern Africa
- Consumer goods in Nigeria
- Healthcare and technology
- Infrastructure in Kenya, Algeria, Egypt, Nigeria, Morocco, and South Africa.
- Agriculture in Egypt, Nigeria, and Ivory Coast
- Banking in Sub- Saharan Africa
Here are the top 10 countries to invest in, in 2022. If you are looking to diversify your investment portfolio, you should give it a try.
Also read: Entrepreneurial Ways To Make Money In Africa.
1. Nigeria
The Nigerian entertainment industry has seen a lot of growth in recent years, like music and film production and booming theatres and cinemas. Also, the sector offers investors a rich ground on which to invest and profit handsomely in Nigeria. You can also put money into the Nigerian stock exchange.
With a GDP of 514 billion dollars, Nigeria has the biggest economy in Africa. It has a population of over 200 million with enormous purchasing power. However, only a few local businesses are benefiting from it. The manufacturing sector is profitable due to the import of most products. Therefore, manufacturing will be one of the best areas to invest in if you have an excellent marketing and distribution strategy. Nigeria has ideal climatic conditions for agriculture and fertile and arable soil. So, you can invest in agricultural enterprises.
2. Egypt
Egypt’s economy is amongst the most prosperous in Africa. In addition to a GDP of roughly $363 billion in 2020, it has a per capita income of around $3,058. Egypt has a strategic geographic location and highly qualified workforce. Its largest industry is tourism.
Egypt also boasts significant energy reserves, particularly natural gas.
The government plans to privatise approximately 150 firms, including fifty in the textile industry. Additionally, ten airports make this is a big investment opportunity.
3. South Africa
South Africa has a developing economy. It has a favourable demographic profile since it is strategically located on the southernmost tip of the continent and serves as a gateway to the rest of the continent. South Africa is a member of the BRICS. Impressive infrastructure, cutting-edge innovations, and established manufacturing make it attractive to investors. Investment opportunities are in manufacturing and finance. The country has benefited a lot after the world’s recovery from the Corona Virus.
4. Algeria
The Algerian economy is challenging as well as highly lucrative. The government openly supports FDI, but foreign investment is complicated by an unstable regulatory environment. Algeria’s economy is dominated by the production of hydrocarbons, which contributes to 95 per cent of export earnings and roughly 60% of government revenue.
5. Morocco
Morocco provides a legislative framework and support measures that are highly beneficial to investors. Besides, it offers low labour costs, a well-developed infrastructure, and a young, well-trained population. The country is strategically located between Europe and Sub-Saharan Africa. Foreigners can invest in the country under the same terms as residents. Tourism, agriculture, aquaculture, automotive, textile, and agriculture are booming sectors.
6. Kenya
Kenya has been referred to as a “hotbed” of investment prospects since it is East Africa’s largest economy. It has a fast-increasing consumer market and exceptional market access. With 72 per cent of the population having access to the internet, Kenya is excellent for internet-driven and knowledge-based investments. The country is seeing a surge in market demand for high-value goods and services due to urbanisation and a growing middle class.
It is important to note Kenya is among the countries going through an election year in 2022.
7. Ethiopia
Ethiopia’s average real GDP growth rate was 9.9% between 2008 and 2018, making it one of the fastest-growing economies. There are Agro-economic zones for agricultural growth as well. By 2025, the industry sector is expected to be Ethiopia’s most significant component of GDP. Ethiopia aspires to transition to an industrial economy so the manufacturing sector offers an goodopportunity to invest.
8. Ghana
Ghana is one of the most stable and robust democracies in the continent. The government has pro-business policies and offers a peaceful environment for investors. Travelling to Europe and America takes an average of 8 hours. With an annual average rate of $558, it boasts one of the most competitive minimum wages in the West African subregion.
Ghana has one of the highest literacy rates in West Africa and a skilled and trained workforce.
9. Angola
Angola has a reasonably consistent and reliable political environment boosting its economic growth. A member of OPEC, Angola produces 1.2 million barrels of oil per day. Over 195 government assets are being privatised in Angola. Participation in the tenders by foreign investors is welcome. Infrastructure, agriculture, construction, and hotels have seen significant investment. Several multinational banks opened local branches resulting in an improved the banking system in the country.
10. Ivory Coast
The country’s political stability has improved, with a significant rise in democratic structures. It has a thriving agriculture sector. Ivory Coast is also the largest producer of cocoa in the world. Its membership in the West African Economic and Monetary Union and the CFA franc zone ensures it has monetary stability.
Banks provide low-interest rates to make it simple to obtain funds and invest.
The stock markets in Africa are sometimes complex, so choosing the right one requires thorough market knowledge. Starting small is always a better idea for small investors aiming for exposure.
Also, read Top 3 Investment Options.
