The 10 biggest business opportunities in Africa for impact and profit

By Henok Assefa

I’m often asked how I approach investment opportunities. To me, business is about solving society’s challenges with purpose and precision. As co-founder and GP at African Renaissance Ventures, I see Africa as a canvas of possibilities—where innovation meets necessity, creating solutions that transform lives and build enduring value.

Africa is a continent on the cusp of transformation, where boundless potential meets untapped need. By 2030, consumer spending is projected to soar beyond $6.6 trillion, yet vast swathes of its population remain locked out of markets, excluded from essentials many take for granted. This unmet demand—what Clayton Christensen’s Prosperity Paradox defines as non-consumption—is not merely a gap, but a vast horizon of opportunity, waiting for bold innovators to chart new courses.

Here are the Top 10 opportunities to harness Africa’s promise, where impact and prosperity converge.

1. Energy Access

Problem: 570 million Africans lack electricity, limiting productivity and quality of life.

Opportunity

•   Expand solar home systems and micro grid using pay-as-you-go models (e.g., M-Kopa).

•   Promote clean cooking technologies, including biogas and improved cookstoves.

Impact

•   Unlock rural productivity and enable schools, clinics, and businesses to operate reliably.

•   Contribute to climate change mitigation and reduce deforestation.

2. Financial Inclusion

Problem: 53% of Africa’s adult population is unbanked, excluding them from financial systems.

Opportunity

•   Scale digital payments beyond M-Pesa, extending mobile wallets to underserved regions.

•   Offer microloans and savings platforms targeting informal workers and traders.

•   Provide affordable insurance (health, agriculture, and life) tailored to low-income households.

Impact

•   Enable small businesses to access capital and grow.

•   Increase resilience to financial shocks among vulnerable populations.

3. Education and Skills Development

Problem: Millions of Africans lack access to affordable, quality education and job-ready skills.

Opportunity

•   Develop EdTech platforms for mobile-first learning and workforce skills training.

•   Establish vocational training programs focused on trades and tech skills.

•   Scale low-cost private schools to underserved communities.

Impact

•   Build a skilled workforce to meet the demands of Africa’s emerging industries.

•   Create pathways for social and economic mobility.

4. Healthcare Access

Problem: Healthcare is inaccessible due to cost, distance, and infrastructure challenges.

Opportunity

•   Expand telemedicine for remote consultations and diagnostics.

•   Improve availability of affordable pharmaceuticals via last-mile delivery.

•   Launch micro insurance schemes for informal workers and low-income families.

Impact

•   Save lives through better access to care.

•   Reduce catastrophic healthcare expenses for households.

5. Agriculture and Food Security

Problem: Smallholder farmers, who feed the majority of Africa, lack tools, financing, and market access.

Opportunity

•   Provide AgriTech solutions for access to inputs, mechanization, and markets (e.g., Hello Tractor).

•   Offer irrigation technologies to boost resilience against climate variability.

•   Reduce food waste through cold storage and better logistics.

Impact

•   Boost productivity and incomes for farmers.

•   Strengthen Africa’s food security and exports.

6. Affordable Housing and Urbanization

Problem: Africa faces a housing deficit of over 52 million units, with rapid urbanization worsening the challenge.

Opportunity

•   Develop modular housing solutions for affordability and scalability.

•   Introduce innovative financing models, such as rent-to-own schemes.

Impact

•   Improve living conditions for low-income households.

•   Drive sustainable urbanization to power economic growth.

7. Transportation and Mobility

Problem: Transport barriers limit access to jobs, markets, and essential services, particularly in rural areas.

Opportunity

•   Scale ride-sharing platforms tailored for Africa’s unique urban and peri-urban needs.

•   Invest in electric mobility, such as affordable e-bikes for last-mile delivery.

•   Build low-cost logistics platforms for rural and informal markets.

Impact

•   Improve connectivity and reduce the cost of goods and services.

•   Open new economic opportunities for underserved populations.

8. Clean Water and Sanitation

Problem: 31% of Africans lack basic access to clean water, while poor sanitation contributes to health crises.

Opportunity

•   Deploy pay-as-you-go water solutions, such as solar-powered kiosks.

•   Introduce low-cost sanitation technologies and waste management innovations (e.g., Sanergy).

Impact

•   Prevent waterborne diseases and improve public health.

•   Free up time spent collecting water, boosting productivity.

9. Digital Connectivity

Problem: 73% of Sub-Saharan Africa remains offline, missing out on economic opportunities.

Opportunity

•   Subsidize affordable smartphones to accelerate digital access.

•   Deliver low-cost internet services, especially in rural areas.

•   Develop localized content platforms in African languages to drive adoption.

Impact

•   Empower millions to participate in e-commerce, e-learning, and digital economies.

•   Foster innovation and entrepreneurship.

10. Manufacturing and Local Industry

Problem: Africa imports a significant portion of its consumer goods, limiting job creation and economic resilience.

Opportunity

•   Establish local manufacturing hubs for textiles, agro-processing, and consumer goods.

•   Build industrial ecosystems through public-private partnerships supporting SMEs.

Impact

•   Create jobs and reduce dependence on imports.

•   Diversify economies and build resilience to global supply chain disruptions.

Strategic Insights

To succeed in addressing non-consumption:

1. Simplify Solutions: Make products and services affordable and user-friendly.

2. Leverage Infrastructure: Build on existing mobile and informal market systems.

3. Iterate with Feedback: Engage non-consumers to refine products to fit local contexts.

4. Embrace Technology: Use AI, mobile platforms, and data analytics to scale effectively.

5. Collaborate Locally: Partner with governments, NGOs, and private players to overcome systemic barriers.

Africa’s non-consumption challenges represent enormous opportunities for entrepreneurs and investors. By addressing unmet needs in sectors like energy, healthcare, financial inclusion, and education, businesses can create scalable, profitable solutions that drive transformative impact across the continent. This is the frontier where purpose meets profit.

*Henok Assefa is the founder of Precise and co-founder of African Renaissance Partners. A key player in Africa’s economic transformation, he invests in innovative technologies to drive growth.