Young investors and entrepreneurs dominate the list of new millionaires
In the most recently compiled report by New World Wealth in which they look at the wealth of Africans, they have stated that there are now currently in excess of 160,000 millionaires living in Africa.
In the years from 2000 to 2013 the total number of millionaires across the world as a whole, grew by 73%. This percentage is however significantly smaller than the growth rate of millionaires seen in Africa over the same period, which was more than 145%.
The majority of the new African millionaires have been young investors and entrepreneurs who have either established new enterprising businesses, or made successful investments in some of the most profitable sectors in Africa’s fastest growing economies.
The number of millionaires continues to grow
The number of new millionaires has continued to grow in recent years and this growth is not currently being forecast to slow down. There are a number of significant business opportunities across the continent, eleven of which are considered to have the greatest prospects for success, these are; Solar power, agribusiness, smartphones, internet access, education, African art, retail, apps & online services, payment solutions, real estate and startup financing.
The four most profitable business opportunities
Most areas of sub-Saharan Africa have over 300 days of sunshine, making sunlight one of Africa’s most plentiful natural resources. Solar energy is currently seen as the best alternative power source for the 600 million people across the continent that currently still don’t have access to a dependable supply of electricity, as well as those currently reliant on diesel and petrol generators.
A new business based in Kenya which already provides ‘pay-as-you-go’ solar power to almost 300,000 home in Tanzania, Uganda and Kenya, has already attracted $40 million in investments.
By 2030 the agribusiness industry in Africa is expected to be worth $1 trillion, in fact sub-Saharan Africa is believed by many to have the potential to eventually become the principal exporter of food products in the world. A massive increase in production would also allow the amount of imported food to be reduced. African countries currently spend in excess of $10 billion just importing grains, largely rice.
The introduction of low-priced smartphones over recent years helped to ensure that Africa became the second fastest growing mobile phone market in the world, the consumers of these ‘first generation’ phones are now however aspiring to upgrade their basic devices to smartphones. The average cost of the typical smartphones is however still too high for the average African, this is therefore creating a huge opportunity for designers, manufacturers and distributors of low-priced smartphones.
Technology giants such as Facebook and Google are already competing with each other to be the first company to supply millions of Africans with improved internet access. The profit potential is huge as Africa’s internet market is believed to be worth many billions of dollars.
Despite competition for both Google and Facebook a number of African entrepreneurs are also competing for the opportunities in the market. A startup company based in Kenya called BRCK has already raised $3 million in investment for their internet modem. It has been specifically designed as a tough device, able to cope with both limited electricity and internet connections, capable of efficiently switching between 3G, 4G, Wi-Fi and Ethernet. Thousands of units have already been sold across not only Africa but also India, with huge interest being seen from schools.
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