European countries are exporting more and more to Africa. It is still a continent that needs support in many areas to help it use its huge potential. The problem in Africa is the large number of areas that are underdeveloped or do not have access to advanced technology that would allow local companies to grow. Africa is one of the more promising directions of European expansion. It is considered an important partner because of its demographic potential, especially now, when an increase in the middle-class and economic stabilization are observed in many African countries. Which industries have the best chances of high profits?
Agricultural machinery industry
In most African countries, agriculture is still the cornerstone of the economy. The climate is best for tuber and root crops, but cereals and legumes are grown here as well, together with sweet potatoes and cassava. Among the fruits, the most popular ones are citrus ones, including oranges and tangerines. For example, Algeria is currently the largest clementine producer in the world. African agriculture remains focused on the cultivation of coffee and tea, which constitutes an important area of the economy of this continent. Despite its huge potential, agriculture in Africa is still at a very primitive level when compared to the European one. There are no modern technological solutions in use, which results in its untapped potential. Therefore, manufacturers of agricultural machinery have a great opportunity now to enter the African market. As much as 65% of all arable lands in the world are located in Africa. To make them produce crops for the whole world, it’s necessary to modernize agriculture and introduce modern machines produced in Europe.
Food industry
The growing population of Africa and also the increase in the wealth of local societies, lead to increased consumption needs. The needs of the population are beginning to grow bigger than the production capacity of their region’s market. Europe is the main export centre for Africa, and it can fill the gap in the food industry there. For example, in Ghana the consumption of poultry has been growing successively for several years, while only up to 10% of poultry meat comes from this country’s local producers. This is another area that has a huge investment potential in Africa.
Establishing cooperation with local food traders is beneficial not only for poultry suppliers but also for producers of dairy products. In Algeria, dairy products are the second most consumed food category. The problem is, however, the small number of dairy plants and insufficient processing capacity in the region, which is caused by insufficient process mechanization. Therefore, Africa is getting more and more interested in importing dairy products. Cooperation between European suppliers and local traders is getting stronger. It’s facilitated by the possibility to do money transfers to Africa, which accelerates global access to foreign markets in both Europe and Africa.
Information and communications technology
There is a significant increase in the number of mobile transactions and interest in mobile devices such as smartphones and tablets, especially in East Africa. Its society, even in rural areas, frequently uses mobile payments. Online shopping on the African continent is already as popular in many regions as it is in Europe. Countries such as Kenya and Rwanda have up to a 70% smartphone adoption rate; already more than half of the entire local society has access to the Internet. Thus, exporting electronics to African countries can be very profitable. Money transfer tools and applications using payment API in this area play a major role. They improve cooperation between suppliers, contractors, but also promote advanced technologies.
Nowadays, Africa is a place where the wealth of inhabitants keeps increasing. At the same time, there is a demand for more luxury products whose production is insufficient or even impossible in this continent.