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By Gbjinhus
1. Agriculture

Africa has a global comparative advantage in agriculture, being home to more than half the world’s agriculturally suitable and highly unused land, resources and its vast water resources have hardly been tapped.  60% of the world’s uncultivated land is in Africa, while the continent is only responsible for 10% of the world’s agricultural produce.   Agriculture as an untapped investment opportunity is set to be a major growth driver over the next few years, surpassing mining and metals.

2. Power

Reliable and affordable energy lies at the forefront of Africa’s pursuits, to elevate economic growth and sustain the needs of an increased urbanised population.  Many African nations struggle with high costs, low capacity and constant power outages.

3. Infrastructure

Mauritius, the Seychelles, Namibia, South Africa and Morocco, reportedly boast the best quality of physical infrastructure in the continent.  On the other end, Libya, Angola and Guinea are reportedly reflecting poorly in infrastructure.  The lacking in infrastructural development is a problem that surpasses geographical boundaries and impacts the continent as whole.

Although Africa’s infrastructure outpaced Asia in power generation capacity and landline telephone density in the 1990s, investment into infrastructure is said to have stagnated over the last 10 years, according to the report.

4. Retail

Retail is a fast growing sector in the continent, experiencing exceedingly impressive growth rates, and contributing to the income distribution expanding Africa.

With every country there are differences in consumer-consumption environments; industry leaders must understand their target countries, in their growth rates, total population, urbanisation growth and their consumer power, in a highly fragmented sector.

When taking into consideration the consumer behaviour favourable to retail investing, Nigeria, Ethiopia, and the DRC have the most favourable consumption spending growth, however mainly stemming from their large population rates.