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3 Very Important Tips For Doing Business In Africa

3 Very Important Tips For Doing Business In Africa
In 2013, Africa was named the fastest growing continent in the world.
Indications of positive economic growth have been very visible across the continent, with more than a third of Sub-Saharan African countries registering growth rates of 6% or more. 
Many international business observers have named Africa as the future engine of economic growth in the world. Today, smart investors are taking advantage of these positive economic ratings and statistics, and so can you. It is true that doing business in Africa carries certain risks, such as corruption, lack of transparency, bureaucracy and the like, but if you are able to work around these problems, the African continent will provide better returns than anywhere else in the developed world. 
The key to becoming a successful investor in Africa is conducting very detailed research to find out which country produces what, what they lack and their policies and economic reforms, as well as political trends. Here are some tips for some of the most potentially lucrative businesses in Africa:

• Crowdfarming:

Across the world, agriculture is a huge business and most farmers are financially independent. Not yet in Africa. According to the United Nations, Africa’s agriculture industry is expected to be worth $1 trillion by 2030. Still, Africa spends over $30 billion on food imports annually. 
A big part of the problem is that most of Africa’s food is still produced by smallholder farmers in rural areas. They are largely poor people who use crude farming methods and have very limited access to capital.

However, if people in the cities pool funds together, invest in these rural farmers, and take a share of the profits at harvest time, this would significantly boost food production, cut down the continent’s food import bill, and make more money for both the investors and the farmers. This business model is called “crowdfarming”, and it’s a trend that could radically transform the face of agriculture in Africa. 
As Africa’s population doubles over the next 30 years, the business opportunities in Africa ‘s agriculture space are very likely to produce a league of millionaires who made their money while pulling thousands of farmers out of poverty.

• Affordable Housing:

Africa is experiencing the world’s highest rate of rural-to-urban migration. By 2030, it is projected that up to 50% of the continent’s population could be living in towns and cities.

Urbanization is great, but it raises the question of where will all these people live? Even if the governments tried, they cannot build homes fast enough to meet the growing demand for accommodation. Africa’s housing crisis opens a lot of interesting opportunities for several industries, from cement production and furniture making, to building contractors and mortgages. However, beyond conventional housing, there is an interesting trend of homes being built from cheap and durable alternatives, like shipping containers. 
These alternative options are significantly cutting down the cost of building homes, making them affordable to a larger segment of the population. So far, most of Africa’s housing developments have focused on the premium and elite segment of the market. The biggest opportunities will emerge from providing housing at scale at affordable prices.

• Local Products for Export:

Africa spends billions of dollars on imports every year. This includes both food and non-food items. However, there are a lot of local products on the continent that have the potential to become global brands. Such is the case with Nilotica, a rare type of Shea butter that is used in luxury beauty products sold around the world. The trees that produce this butter only grow at the source of the Nile River, in Northern Uganda, South Sudan and Ethiopia. Another example is fonio, a forgotten cereal that has been grown in Africa for more than 5,000 years. Largely regarded as a “miracle” grain, fonio is gluten-free and rich in several nutrients that are deficient in most other major grains, such as rice, wheat and barley.

Africa is a continent that significantly rewards problem-solvers and provides a rare opportunity for profitable business, while helping common people at the same time. Success awaits those entrepreneurs and investors who apply their creativity and determination to solving serious problems on the continent. 
Thanks a lot for reading along. What do you think? Kindly drop us a comment and don't forget to share to your friends. 

Shaun Collins is an avid photographer and speaks fluent Italian. He is a writer and editor at PhD Kingdom, a reliable PhD writing service based in the UK, and Next Coursework.
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