Business
Top five African countries to invest in 2023
Africa holds tremendous promise for investment. It is a continent that has huge economic potential and that offers many rewarding opportunities.
Africa’s natural resources make it an economic powerhouse. The Democratic Republic of the Congo has the world’s largest cobalt deposit, and cobalt is a key factor in producing the lithium-ion batteries used in smartphones, electric cars and many other devices. Africa also has huge supplies of gold, titanium, copper, diamonds, salt, phosphates and sulfur.
The continent also has one of the world’s fastest-growing consumer bases. Given the current urbanization rates across the continent, household consumption in Africa could rise as high as $2.5tn by the end of the current decade. So, whether you want to invest in the JSE top 40 or are looking at other forms of African investment, here are five countries on the continent of Africa that deserve your attention:
Nigeria
Nigeria boasts the third-highest level of foreign investment in Africa, and the nation is a key focus for experienced investors worldwide.
The GDP of Nigeria in the second quarter of 2022 showed growth of 3.54%, compared to a growth rate of 3.11% in the first quarter of 2022. Most of that growth did not come from the well-known oil sector, which contributed only 6.33%. Communication, data and services accounted for a tenth of the output, as did the combination of natural gas, agriculture and crude petroleum. Manufacturing and construction also continued to thrive way beyond the levels of most major global economies.
Egypt
Egypt is a geographical area with robust economic growth and streamlined business formation procedures. It is a very attractive location for foreign investors in several ways.
Egypt’s economy has indicated exceptional performance, resiliency and the ability to absorb downturns, with a substantial capacity to attract new capital. Investment in Egypt increased by 183% during the initial quarter of 2022, from $1.4bn in 2021 to $4.1bn.
Egypt’s plan for 2022/2023 calls for urban development sector investments totaling EGP 294.2bn. Specifically, investment is required in the sewage system, water treatment and construction sectors.
South Africa
The South African economy is the most developed and diverse in sub-Saharan Africa. Stable institutions strengthen the business climate, while an independent judicial system and legal sector honor the law, and a free press and well-developed financial system all contribute to this positive environment.
South Africa has attracted considerable US investment thanks to the perception that it is a relatively low-risk African location. In 2020, Google (US) invested roughly $140m and PepsiCo $1.5bn, while Ford announced a $1.6bn investment.
Overall, South Africa offers a unique combination of first-world financial infrastructure and a huge emerging market economy.
Ghana
Ghana is among the most stable democratic nations on the African continent, and political stability ensures long-term investment stability.
Ghana aims for 5.8% GDP growth, which is driven primarily by cocoa beans, petroleum products and mineral production. Ghana has the fastest-growing economy in Africa, and its rate of economic growth continues to outpace analysts’ forecasts.
During the first quarter of last year, overall GDP increased by 3.3%, although this was a decrease from the comparable period in 2021, when it grew by 3.6%. Fiscal pressures have remained elevated, but the government has begun discussions with the IMF on a potential program to address outstanding issues, and Ghana continues to be a location with enormous potential.
Algeria
Algeria’s foreign exchange reserves earned through oil and gas provide enormous opportunities for economic expansion. A development strategy that focuses on stronger, sustainable growth could generate more jobs, especially among young Algerians, and could alleviate the nation’s housing shortage.
Algeria’s GDP is projected to reach $165bn by the end of 2022, and $170bn by the end of 2023, which clearly shows the nation’s growth potential.
Algeria’s economy is dominated by the export of petroleum and natural gas, which make a contribution worth roughly one-third of the country’s GDP annually despite volatility in global prices. The national government is pushing ahead with diversifying the economy, beginning with the non-oil sector, while at the same time intensifying the structural transformation reforms to underpin future growth.
Summary
While Africa continues to face challenges, the strongest nations on the continent are demonstrating huge potential for further growth, and global investors looking to invest in a region with a rapidly growing consumer base should consider these five nations as starting points for African investment.
Kolomoni Microfinance Bank has awarded grants to five female entrepreneurs to boost their businesses as part of its commitment to promoting women in business.
The initiative, organized to mark International Women’s Day, was themed “Accelerate Her Growth.”
According to the bank, the decision to support women was inspired by World Bank data, which shows that 41 percent of Nigeria’s micro-businesses are owned by women.
Delivering the keynote address, business strategist, Ebun Akinwale, emphasized that entrepreneurship requires resilience, creativity, and passion.
She illustrated this by recounting her own business challenges and highlighting the critical role passion plays in overcoming obstacles.
The event underscored Kolomoni’s mission to empower women and support small businesses in Nigeria.
Other speakers at the occasion were Odunayo Oyebolu, a seasoned entrepreneur; Victori Ajiboye, a marketing strategist with global experience; and Simi Ojumu, a finance expert.
The beneficiaries said the financial support was a validation of their hard work and a boost of confidence towards scaling through in their businesses.
The winners were selected after sharing their entrepreneurial journeys and presenting business proposals for financial assistance from the bank.
The 8th edition of the Nigeria Small and Medium Enterprises (SMEs) Summit and Awards (Nigeria SMEAwards) is set to take place in Lagos for the first time in its history, marking a significant milestone for this prestigious event.
Endorsed by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the annual awards celebrate the entrepreneurial spirit driving Nigeria’s economy.
The visionary convener of NigeriaSMEAwards 2025, Adedayo Olalekan, said, “Governors from Zamfara, Sokoto, Ebonyi, Borno, Enugu, Ekiti, Benue, and Kaduna States have all implemented transformative initiatives that have greatly benefitted local enterprises.
“Their contributions will serve as a beacon of inspiration for the nation.”
Speaking at a recent press conference in Lagos, Olalekan emphasised that the event would introduce a fresh and unique approach, moving away from tradition.
“Despite economic challenges, Nigerians continue to show an unwavering commitment to progress”, he said.
He noted that the awards will not only honor outstanding individuals, but also recognise the critical role state governments play in nurturing vibrant SMEs.
“State governments have been instrumental in fostering a supportive environment for SMEs, which in turn benefits both the awardees and the larger economy.
“With major banks like Providus, Access, and First Banks competing for top honors, the 8th NigeriaSMEAwards promises to be a night of celebration, recognising exceptional contributions to Nigeria’s SME landscape”, Olalekan added.
Amid global challenges such as inflation, geopolitical instability, and the ongoing conflict in Ukraine, Nigerians continue to show remarkable resilience.
Their efforts, according to reports, have contributed to job creation, economic growth, and overall prosperity, with SMEs at the forefront of this success.
This year’s awards will recognise governors who have made significant strides in advancing the SME sector within their states.
Small and Medium Enterprises (SMEs) consultants in Rivers State have called on entrepreneurs to be focused and avoid distractions.
The experts, who were speaking on the recent developments about the change of leadership in the state, said entrepreneurs need to put more efforts in their businesses in order to break even in the present situation in Rivers State.
Speaking in a chat with The Tide, an international SMEs consultant, Amb. Larry Goodwill Ajiola, said the political moves is capable of distracting SMEs who are not grounded in their businesses, adding that “the serious minded business men and women would utilise the opportunity to increase their revenues”.
Amb Ajiola, who is the President and Chief Executive Officer (CEO) of Rumuomasi Co-operative and Credit Society Limited, Port Harcourt, said, “Rugged entrepreneurs look out for business opportunities in situations around them, whether good or bad”.
He reiterated that the loan facility given to 3,000 SMEs in the state revived and expanded businesses, adding that the empowered businesses should continue to push, no matter the situation.
“credit is a powerful tool for achieving financial security.
“We can only keep imagin the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the Local Government Areas in terms of Gross Domestic Prooduct (GDP), increased tax returns, employment creation, income distribution, and production of goods and services”, he said.
Another SMEs Expert, a business consultant and SMEs trainer, Mr. Chisom Sam-Orji, in his advice, noted that every SME in the state should realize that change is the only constant thing.
He said SMEs should also know that “tough times never last, but tough people do”, adding the need for every entrepreneur to stay focused on creating value and remain resilient.
“This is not the time to be distracted by every noise around your space, but to maximize every time you have to focus on the essentials and keep creating value.
“For some people, it may just be the time to diversify, create new products and services to serve a new or existing market. But this must be based on the facts available to you via research and market surveys”, he said.
The SMEs expert also said the present time in the life of an entrepreneur is a time to cut off unnecessary excesses that surround one’s business.
“Those extra costs that may hamper your growth in this season and beyond, and focus on just essentials.
“SMEs should find certain leverages that are available to aid their business growth. This could be in form of grants, knowledge, and other leverage tools.
“Collaboration is one big way to grow in this season. Finding ways to collaborate with like minds instead of competing could enable a product or service gain advantage in the market and beyond.
“They should also find ways to sustain and grow their customer relationship as this is key to sustaining business flow. They must seek new and efficient ways to serve their customers and gain their loyalty”, he stated.
He further called on every entrepreneur to keep building capacity and never take their eyes off their visions, adding the need to muster every courage it takes to keep building and moving forward.
Lilian Peters