5 fastest growing companies in Africa in 2022
Note that we consulted several reliable sources when compiling this list. These sources include the World Bank, Market Watch, Nairametrics, Tech Crunch, Africa Business Communities, etc.
1. Fintech company
Fintech companies continue to outpace many startups on the African continent with problem-solving innovations. According to Tech Crunch, Africa is the world’s second fastest growing and most profitable payments and banking market after Latin America. The continent is home to over 500 fintech companies, most of them in Nigeria, South Africa and Kenya.
According to the World Bank, around 66% of the population of sub-Saharan Africa is unbanked. The unbanked population is another reason fintech companies are thriving on the continent. They leverage technology to modify, automate and improve financial services for consumers and businesses.
According to Business Elites Africa, 75% of Nigerian fintech startups earn an average of $5 million per year. Given the continued funding of fintech companies in Africa, the sector will continue to grow with internet penetration and smartphone usage.
With many investors benefiting from Africa’s resources, the food industry is one of the continent’s businesses with a fast growing percentage. According to Business Standard, the African food industry recorded growth of 3.6% in 2020-21 and 3.9% in 2021-22. Food is a basic need for everyone, which makes it profitable for the businesses of entrepreneurs in the sector.
Growth is driven by growing demand for packaged and processed foods and strong consumption of frozen and dairy products. The expansion and innovation of the food and beverage industry are other factors contributing to the growth. According to Nairametrics, a bigger food crisis is looming in Africa.
The Russian-Ukrainian war, low purchasing power, political instability and conflict are pushing food prices to unprecedented levels on the continent. Meanwhile, agribusinesses benefit from feeding more than a billion people. Entrepreneurs earn huge profits locally by storing and packaging food products with an excellent transport network.
With Africa’s large population, there is a high demand for commercial and residential properties, which makes the real estate sector flourish. According to Nairametrics, the Nigerian real estate market grew by 1.77% in 2021 and by 10.84% in the first quarter of 2022. The Egyptian real estate market generated $10 billion, representing a growth of 8% in 2021.
According to Nairametrics, the Egyptian real estate market has a growth projection of 6.5% in 2022. The Kenyan real estate market grew by 5.2% in the third quarter of 2021 and is expected to grow by 5.9% in 2022. The real estate sector is one of the most valued. in Africa, with entrepreneurs earning from renting, buying and renting commercial and residential properties.
The real estate sector is very profitable but requires knowledge and experience. To get started in the real estate business in Africa, consider seeking advice from experienced real estate agents and learn from previous mistakes. Learn the strengths and weaknesses of the industry and how it works.
E-commerce is a rapidly growing African business due to technological advancements and innovation. Companies in this sector allow individuals and businesses to exchange goods and services via the Internet. According to Vanguard Newspaper, the value of the real estate market in Africa is expected to reach $180 billion by 2025. The report further reveals that e-commerce businesses in Africa secured more than $256 million in funding in 2021, which which represents a growth of 40% compared to 2020.
According to Africa Business Communities, the e-commerce industry is expected to generate annual revenues of $46.1 billion by 2025. The lucrative business of the industry involves facilitating sales of goods and services between businesses and their clients. E-commerce businesses also facilitate the sale of goods and services through third parties. Jumia, eBay, Konga and Kilimall are some examples of African e-commerce platforms.
The logistics business is a lucrative and fast growing business in many African countries. Whether in Mauritius, South Africa, Ethiopia, Ghana, Kenya or Nigeria, entrepreneurs are earning considerable rewards in the industry. According to Market Watch, the logistics market in Africa has grown from millions to millions of dollars from 2017 to 2022. Sawya’s reports show that the Suez Canal in Egypt recorded a turnover of 704 million dollars in July 2022, which is an increase from the $531.8 million reported in July 2021.
According to Research and Markets, the Nigerian logistics and freight market is expected to grow with a compound annual growth rate (CAGR) of over 3% from 2022 to 2027. The business is profitable in various African countries with the ramp up delivery agencies working by hand. in collaboration with traditional and online retailers. Delivery agencies streamline the transfer of goods to customer destinations. Consider researching the strengths and weaknesses of the business before investing and focusing on building an online presence for promotions.