With the next wave of growth and development starting, Africa is budding with potential for investment opportunities. African markets are geared to focus on sectors and industries that will enable the continent to actualize its potential and grow exponentially. Over the last decade, there was an abundance of foreign direct investment (FDI) into several sectors like telecommunications and consumer goods. However, the rapid mobile penetration and the onset of COVID-19 have changed the landscape of industries and paved the way for new opportunities.

Here are a few emergent sectors that carry a lot of opportunities for investors.

§  Financial services

Africa’s financial services sector is forecasted to grow by a staggering 8.5% per year for the coming years. With a banking penetration rate of just 38%which makes the financial industry a promising sector for investment for the upcoming decade. Most people living in Africa prefer using mobile money instead of relying on the traditional banking system. With 13 times more customers opting for mobile money options rather than traditional banks, Africa has already garnered the attention of fintech giants from all over the world. With players like Mastercard and Stripe already in the game, Africa’s financial services sector is ready to take off.

§  Education technology

The COVID-19 pandemic led to an emergent trend of investing in EdTech. The decade leading up to 2020 saw $32 billion invested into EdTech ventures across the world. While Africa was on the move to EdTech even before the pandemic, now their progress has been accelerated. With 300 million African children geared to study from home, several African EdTech startups have sprung up. This makes the education technology sector ripe with possibilities and a great place to invest toys money in.

§  Healthcare technology

The onset of COVID-19 has led all countries worldwide to re-evaluate their priorities and push for progress in the health sector. Africa’s healthcare sector is growing to meet the evolving demands of its residents across the continent. Healthcare startups are in the process of digitizing the healthcare process to increase accessibility. Between 2019 and 2020, the funding to health technology startups grew from $2o million to a staggering $90 million, which showcases the high level of interest investors already have in this sector. From leveraging mobile penetration to using drones for delivery, the African healthcare technology sector is set to rise and can be a viable place for investment.

§  Renewable energy

Strong investor support and an abundance of opportunities mean that the renewable energy sector will probably be the largest source of energy in African markets in the upcoming years. There are several regional energy projects in the pipeline, which further strengthen the case for the potential for growth in the renewable energy sector. For instance, the African Development Bank’s Desert to power initiative aims to develop the Sahel region’s energy generation potential to supply to countries including Mali, Niger, and Eritrea. All this attention means that the renewable energy sector is a sensible place to invest your money into.

While the COVID-19 pandemic was nothing short of a health crisis, it has also resulted in helping countries reorganize their priorities and map out their plan for growth. Africa’s resilience and potential have made it a very attractive place for investments from people across the world.