If you’re an investor hoping and seeking to find a breakthrough investment ground, then look no more. Emerging markets especially those in Africa should be your main focus. Major brands are establishing footholds in the region at a rapid pace and keep nodding that Africa is the next frontier for investment strategy.
The Stanford Institute for Innovation in Developing Economies recently announced that it will open a research, training and innovation facility in Nairobi this year, which is also the latest in a line of think tanks and companies investing in the region. In 2013, IBM opened its first Africa-based research laboratory in Nairobi, Kenya. The following year, The Royal Philips technology firm opened its own maiden research lab in Nairobi in March as well.
Each of these projects is a testament to the hive of innovation and enterprise developing within the continent. Additionally, there’s a renewed appreciation for the role of research and development in economic growth in countries like Ghana, Kenya, and Nigeria. Above all, this continues to prove that Africa is a go-to place for better innovations as some enterprises continue to pose a promising advantage for potential investors seeking for opportunities.
Here are a few recommendations for the key sectors to look out for:
Financial tech, otherwise known as Fintech, is an industry that has continued to serve as a great platform for accelerating commerce the continent during the past decade. This industry has really influenced the economic development of Africa.
Take Safaricom for example. A mobile service provider which has a new text messaging platform sends farmers updates on market pricing so they can adjust their planting projections. The innovations are of great use to the general public, especially those residing in the rural areas.
#2. Online retail
Although wholesale and retail segments or various countries’ economies are rapidly growing, online shopping is still a very promising concept, even in countries like Kenya and Nigeria which have savvy ICT markets. online retail is, without doubt, an industry that’s about to be booming, and it’s in your best interest to invest in it if not sooner than later.
Another segment that’s rapidly advancing is the medical sector, especially when it comes to mobile solutions that address unfavorable personnel-to-patient ratios. In Kenya, Sema Doc telemedicine platform enables its users to schedule appointments with doctors through their mobile phones. They can receive detailed analysis regarding their diagnoses, treatment options, payment arrangements other relevant aspects. These initiatives are vital to economic growth in developing markets as they offer a new frontier for investors.
#4. Public transportation
The list is incomplete without what some may call the “next big thing”. As the urbanization rate continues to rise, there is also a rising mobility need within the continent.
Companies like Buscor, Elwierda, Intercape, Interstate Bus Lines, Springbok Atlas, Translux, Unitrans Passenger, Vaalmaseru are just some of the many bus companies found in South Africa and are well aware of this and continue to take advantage of it.
#5. ICT industries
In 2015, Rwanda ranked first globally for ICT promotion. Tech bun companies such as KLlab provide top class services as well as that much-needed confluence between enterprise and ICT solutions in that country and serve as models for other emerging markets.
Long-term investment prospects are significantly boosted by talent-development strategies, especially in emerging markets, as human capital plays a critical role in development.
Maintaining this pace of growth will be vital to creating new avenues for investments. Investors believe that the trend will hold as the government enforces new laws and policies throughout the regions. These friendly policy environments and will make Africa’s emerging markets very attractive to investors.
Follow these top 5 recommendations and you definitely would not regret it.
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