Top Investment Opportunities & Great Business Ideas To Start in Africa (Part 3)

Distribution of Fast Moving Consumer Goods

The retail industry in Africa is modernizing and formalizing. Existing supermarket chains are expanding into new countries and need local distributors to fill the shelves.

With the development of per capita income and the increase of population, African distribution companies will find themselves in a profitable business area. There are several reasons why you should consider investing in consumer product distribution:

Modern retail is becoming more and more fashionable. Middle-income people prefer to shop at grocery stores and supermarkets rather than from street vendors. These grocery stores and supermarkets need efficient supply and distribution channels.

Many foreign brands are considering exporting their products to African countries. These companies need strong local distributors to deliver their products to end consumers. In recent decades, many South African retailers (Pick n Pay, Massmart, Woolworths, Game) have expanded into new regions (Ghana, Nigeria, Kenya, Tanzania, Uganda, Zambia, Namibia, Mozambique, Botswana, Zimbabwe, etc.). They work with national distributors of consumer goods and manage their operations. African entrepreneurs should definitely study the opportunities in consumer goods and packaged food distribution.

Furniture and Home Accessories Store

The per-capita income in African countries are increasing. Many countries have opted for middle income levels and Tanzania is one of them. Higher income means higher spending on housing and accessories.

Furniture is one of the industries that develops directly with the increase in income. This is why African companies can find profit opportunities in the furniture industry:

The number of middle-income people are increasing. More spending on furniture and home accessories is expected. Consumer trends are changing, and many wealthy people need luxury furniture for home and office furnishings.

The supply of furniture in sub-Saharan African countries is insufficient. Due to the lack of distributors, existing items are very expensive. There is great profit potential. African traders can become exclusive distributors of foreign furniture brands. International furniture brands are looking for strong, local distributors.

Baby and Child Product Distribution

The population of many African countries are very young. The average age in Africa is 19.7 years. In Niger and Uganda, the median age has fallen below 16 years. Africa’s young population offers opportunities for baby care and children’s products. Why you should import baby care products and become a distributor:

The African population is very young. The fertility rate is very high. This has promoted the consumer market. Local production of baby care products is not enough.

Many products are imported and sold at very expensive prices. New local distributors can create an efficient way to sell their products. This is a market that will never end. African investors can become distributors of foreign brands or produce their own brands through private label solutions.

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