Starting a new business in a new country requires a lot of due diligence but there are several cheapest countries in Africa to do business. They are the countries that provide a conducive atmosphere for business start-ups and are also friendly to foreign investments. In this segment, we explore some of the countries you may consider while exploring a new place to start your business. We also provide you with tips on areas of investments you can explore in Africa.
What are some of the areas of investments in Africa?
Africa is rising. Several business opportunities exist in some of the continent’s fastest-growing economies. They are ripe for investments and could be your starting point in your quest to invest in some of the cheapest countries in Africa to put up an investment.
Agribusiness
A group of women attend to crops. Agribusiness is a focal point of the region’s economy/Courtersy
Agribusiness is an untapped gold mine in some of the fastest-growing economies in Africa. The agricultural sector is a major contributor to the continent’s economy, and an investment in the sector is almost a guarantee of good returns.
Mining
The mining industry is one of the lucrative business opportunities in Africa. The areas of investment in mining include oil and natural gas investments. In addition, Africa has a third of the world’s mineral resources and 35% of its uranium reserves, making it a significant place to invest.
Infrastructure
Infrastructure development is one of the key sectors in Africa that is rapidly growing. Opportunities exist in transportation, water projects, power projects, and green energy.
Construction Industry
The increasing demand for residential and commercial buildings in Africa is another gold mine for business start-ups. This is also fueled by the rapid growth of cities and towns in most countries in Africa.
Tech Industry
Several cities in the African continent are rapidly growing into major technology destinations. Some of the areas in the tech industry you can consider include mobile money banking, financial services, the health sector, and information communication technology, among others.
Which are the top five cheapest countries to start a business?
Rwanda
Kigali, Rwanda/Courtesy
Rwanda is one of the most business-friendly economies in Africa. Here, you will not part with a dime to start up your business because the country does not impose fees on business start-ups. Rwanda has embraced digital reforms that have improved the ease of doing business. The long bureaucracies experienced in other countries are absent after the country developed a digitized system of doing business, making it an ideal place to do business. According to the United Nations Development Program (UNDP), some of the opportunities for investments in Rwanda include the tech industry, infrastructure, mining, and Agribusiness.
Tanzania
Mining is one of the major areas of investment in Tanzania/Courtesy
The Swahili Nation based in East Africa is one of the cheapest African countries to do business. The country has earned its place among the fastest-growing economies in the continent and boasts of several investment opportunities. According to the United Nations, Tanzania is among five countries in Africa whose economies are rapidly growing.
Congo
Congo is one of the cheapest countries to start a business in Africa/Courtesy
Despite some of the political problems that the country has had in the past, Congo is one of the best countries to invest in. The areas of investments span from mining, the tech industry and infrastructure. The country boasts of several minerals and is among the fastest-growing countries in the continent. The process of doing business in the mineral-rich country is also not complicated. According to the International Trade Administration, some of the leading sectors in Congo for US investment include telecommunications, Oil and Gas, Construction, Energy, and mining.
Mozambique
Two women walk along the shores of the Indian Ocean in Mozambique/Courtesy
Mozambique is one of the countries in Africa that have created a conducive environment for foreign investment. Areas of investment include mining, infrastructure as well as affordable housing. The country is also struggling with insufficient healthcare, agriculture, and infrastructure, and this provides an opportunity for investors to consider. The cost of doing business is also favorable to business start-ups.
Ivory Coast
Cocoa bean farming is one of the major economic activities in Ivory Coast and a key area of investment/Courtesy
The West African country is one of the fastest-growing economies in the African continent. It has a thriving agribusiness sector in cocoa beans and ranks among the top ten countries around the globe with ease of doing business. Its key sectors have been registering steady growth in successive years, while the cost of doing business is also favorable to start-ups. Opportunities you can explore include the tech industry, agribusiness, and mining as potential sectors to put up an investment in.