Contributing factors to the economic expansion in Africa

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Some of these sectors that have seen immense growth include infrastructure, iGaming, agriculture, telecommunications, and banking. For some time now, investors saw Africa as a place where the only investments they could make were tied to the extraction of natural goods such as petroleum.

However, in the past decade, Africa has taken the initiative and taken the lead in developing many sectors, catching the attention of investors and showing them what is possible. Some of these sectors that have seen immense growth include infrastructure, iGaming, agriculture, telecommunications, and banking. Let’s review how Africans might profit from the growing economy and the reasons why new investors will find it simpler to launch and execute their businesses.

Africa’s Best Growing Sectors

Some of these industries were not even on the investors’ radar ten years ago but with persistence and hard work, they have significantly expanded. Here are a few of the more developed African industries that both domestic and foreign investors are concentrating on:

Infrastructure

Given the size of Africa, it makes sense that new apartment buildings, business buildings, resorts, and hotels are being constructed. Only in 2020, the value of commercial development reached $118 billion, the value of industrial construction exceeded $21 billion, and the value of cultural real estate reached $300 million.

In all, the African real estate industry was estimated to be worth $143 billion in 2020. With these figures, the value of Africa’s infrastructure sector as a whole was greatest.

Telecommunications

In the past few years, the telecommunication sector in Africa has seen a giant spike. Certain smartphone manufacturers have set their sights on Africa. Even though 83% of the smartphones that are being shipped to Africa are on the lower end of the price spectrum, this gives people a way to promote and improve their online businesses.

While some may see the telecommunication sector as a monopoly, others see it as an opportunity for competitors to enter the market and offer different solutions, ensuring everyone has internet access.

iGaming

Before 1996, Africans were only able to place bets on horse races. However, the National Gambling Act set a licensing system for all African countries enabling operators to apply for a gaming license, and if approved, they would be able to open land-based casinos.

A national lottery soon followed, and players had a wider range of gambling options. However, it has proved more difficult to regulate the internet gaming sector. Despite the challenges, more than 30 countries have successfully legalized internet gaming.

As time went by, more and more operators started to enter the market, and it became safer for players to enjoy themselves at an online casino or sportsbook. Today, you are able to find operators such as Pariderect that provide their players with a variety of features.

While online casinos have a big presence in the market, the preferred type of online gambling amongst Africans, especially youngsters, is sports betting. More specifically betting on football matches.

Agriculture

Agriculture has remained one of the main sectors in Africa that massively contributes to its GDP. The sector is even responsible for giving close to 226 million people jobs, which is around 44% of Africa’s working population.

In the past couple of years, countries like Sierra Leone, Chad, and Ethiopia have had the highest contribution to the GDP in Africa.

It is not surprising that the industry would continue to expand when you consider that large nations like South Africa and Nigeria, which, respectively, dedicate roughly 96 million and 69 million hectares of land to growing crops.

The principal crops farmed in the majority of African nations are rice, corn, and wheat. Millions of hectares are still unutilized, and investors are eager to seize the opportunity and make investments in the industry.

Banking

The banking sector has been slowly growing in the past decade, especially with the introduction of FinTech. Financial technology has made it possible for certain banks to branch farther away from the country where they are based.

If we take a look at the banking sector by tier 1 capital, South Africa holds a big role in the African banking industry. The tier 1 capital from the central South African banks in 2021 reached $34.4 billion.

Other nearby nations include Nigeria, Morocco, Algeria, and Egypt, which combined with South Africa make up the continent’s largest banking markets.

Final Thoughts

Of course, the continent also has other industries, some of which may not be as promising as those we’ve already highlighted. But nothing appears to be standing in Africa’s way as it advances toward becoming one of the major actors in the world economy.

Source: freepressjournal.in