Africa is becoming an attractive destination for investors and venture capitalists across the globe. The region boasts huge potential to become a notable player in key sectors such as technology, automobile, healthcare, renewable and telecommunication.
With 60% of the continent’s population under the age of 25, the African economy has a long way to go. The region is currently a dominant exporter of minerals, with the African supply chain finance market rising by a staggering 40% between 2021 and 2022.
One of the frontrunners driving economic growth in the region, South Africa was invited to join the BRICS grouping in 2010 after the country’s economic status was pushed as one of the largest emerging and rapidly developing economies in the world.
Five Untapped Small Business Ideas In Africa
With Africa showing high growth potential, amid minor hiccups due to power cuts and poor business infrastructure, let’s have a look at five small business ideas in 2023. The list revolves around industries with the lowest concentration as they are the ones that are ‘untapped’.
5. Technology And Artificial Intelligence
The use of AI is gaining noticeable traction in Africa. As the population becomes more equipped with technology, there is a range of untapped small business ideas that could be offered, including web development services, UI/UX design services and AI services.
4. Fashion And Beauty
Africa’s fashion and beauty industry has a high potential for growth. Untapped small business ideas in the sector could include setting up an online clothing store, a hairdressing business, a makeup artist business, a conventional in-person boutique and even a fashion blog.
3. Health And Nutrition
This sector offers a myriad of opportunities. Untapped business ideas here include diet and nutrition services, fitness and yoga services, medical billing services, supplying medical equipment, and establishing a medical records management services business.
The electricity crisis could become an opportunity to provide renewable or green energy solutions. Small business owners can opt to become solar panel suppliers or offer repair and maintenance services. Just 1.4% of the small and medium-sized businesses lie in this sector.
The tourism sector here has a lot of potential for growth. Africa is home to some of the world’s most beautiful and most unexplored destinations. Business owners can start a travel planning business, a car rental business, or an event-specific travel business, among others.