Every year in Africa, over $100 billion in transactions are still done in cash. This presents a huge and lucrative financial services opportunity for savvy entrepreneurs.
Since M-Pesa was introduced in East Africa, the transformational mobile-based money transfer and payment service has proved to be phenomenal in Kenya and Tanzania, where the platform handles over 200 million person-to-person transactions every year.
In other parts of Africa, there is a huge scramble for Africa’s next big money transfer and payment service. In Nigeria alone, several promising businesses are jostling to dominate Africa’s biggest economy. Some of the top contenders are Paga, PayAttitude, SimplePay and PayWithCapture.
Less than six months ago, Paga attracted a $13 million investment to expand its business within and outside Nigeria. It’s a huge bet that has the potential to really pay off. Payment solutions will be a key area to watch in 2018.
Africa’s real estate market is a multi-billion-dollar opportunity, and several new millionaires will build their fortunes in this market.
In almost every corner of the continent, real estate projects are emerging. The biggest attractions are high-rise hotels and office buildings, residential homes and apartments, and shopping malls.
In Nigeria alone, there is a shortfall of 17 million housing units, with a funding requirement of $363 billion.
In Angola’s capital, Luanda, prime office rents are among the highest in the world at US$150 per square metre per month. In Mozambique, property prices at the sea ports, particularly for warehouses, are one of Africa’s most expensive.
The key markets for real estate on every investor’s agenda are Angola, Nigeria, Egypt, Mozambique, South Africa and Kenya. All of these countries are experiencing a real estate boom like never before in history. Africa’s large and youthful population, an expanding middle class, increasing urbanisation, influx of expatriates and multinational companies are the key drivers of demand for both commercial and residential real estate.
Author: Gesture Chidhanguro