The latest Africa Wealth Report by New World Wealth reveals there are now just over 160,000 millionaires in Africa.
Interestingly, from 2000 to 2013, the number of millionaires on the continent grew by more than 145 percent, compared to the worldwide growth rate of 73 percent.
In recent years, most of the ‘new millionaires’ have been young entrepreneurs and investors who have created promising businesses and invested in lucrative sectors of Africa’s fast-growing economies.
This year, more new millionaires will join the club.
In this article, I’ll share with you the top business opportunities on the continent that will make more millionaires in 2016.
Let’s meet them…
Solar energy is one of Africa’s most abundant natural resources. Most parts of sub-Saharan Africa enjoy more than 300 days of free God-given sunlight every year.
Still, over 600 million people on the continent, especially in rural areas, don’t have access to reliable electricity. In most cities and towns, power outages are the norm and people often have to rely on noisy petrol and diesel power generators.
Solar energy is free, absolutely clean and abundant. And it provides the best alternative for people in remote parts of Africa who are out of reach of electricity grids.
Interestingly, some smart entrepreneurs are rising to the challenge of lighting up Africa through solar energy, and are very likely to join the millionaires club in 2016.
I’ll share a few interesting examples…
Off Grid Electric, a solar energy provider in Tanzania recently raised $25 million from international investors and won a $5 million grant from USAID. The company is already on track to provide solar power to 1 million homes in East Africa by 2017 and has recently expanded into Rwanda.
M-KOPA, which provides ‘pay-as-you-go’ solar power systems has attracted investments of up to $40 million. This Kenyan-based business has already provided solar power to nearly 300,000 homes in Kenya, Tanzania and Uganda.
Agribusiness is Africa’s untapped goldmine, and a major potential source of millionaires in 2016.
According to a World Bank report, Africa’s agribusiness industry is expected to be worth $1 trillion by 2030.
With up to 60 percent of the world’s uncultivated arable land, fertile soils, abundant labour, and all-year sunshine, sub-Saharan Africa surely has the potential to become the world’s biggest exporter of food products.
Even if Africa decides to ignore export markets, the continent’s one billion people provides a huge and ready market for agribusiness.
Still, every year, African countries import more than 70 percent of wheat consumed, over 300,000 tons of chicken and spend more than $10 billion on imported grains, especially rice.
Interestingly, more African entrepreneurs are tapping into the vast opportunities in Africa’s agribusiness market.
And with the continued harsh impacts of low crude oil prices in 2016, sleeping agribusiness giants like Nigeria and Angola are finally putting a strong focus on agribusiness as a means to diversifying their economies. This means that governments in these countries are now more open and supportive of agribusiness initiatives.
To be continued…