Africa is increasingly emerging as a key investment destination, with booming sectors such as renewable energy, precision agriculture, and fintech. Thanks to tax incentives and public-private partnerships established by many African governments, now is the ideal time to explore the continent’s economic potential.

But given the diversity of our markets and environments, how can you identify investment opportunities that meet your objectives?

Sourcing: Where to Start?

Sourcing, or identifying investment opportunities, can be challenging in Africa. Each country has distinct economic, political, and social characteristics. Before you begin, it’s essential to:

1. Understand the African Context

Before diving into investing, it is crucial to conduct an in-depth analysis of the target countries to understand:

• • Macroeconomic dynamics: Monitor economic indicators such as growth rates, inflation, and monetary policy in African countries using studies provided by the World Bank.
  • Political stability: Assess the regimes in place, the electoral climate, and the risk of conflict using tools from the OECD or IMF analyses.
  • Legal and regulatory framework: Learn about local regulations, tax laws, and investor rights in each country.

2. Identify high-potential sectors

Certain sectors in Africa stand out for their high growth potential. Here are some key areas to monitor:

• • Fintech: Africa is experiencing a veritable explosion of fintech startups, particularly in West Africa with players like Paystack and TapTap Send, and in Kenya with pioneering platforms like M-Pesa, which have transformed financial inclusion through the massive adoption of mobile and digital solutions.
  • Precision Agriculture: Ghana and Ethiopia are leading the way in agricultural exports, thanks to the use of precision agriculture technologies. These countries, with large rural populations and abundant arable land, have the potential to become leaders in the global agribusiness sector.
  • Renewable Energy: Countries like South Africa and Morocco have turned to renewable energy to meet their energy needs. South Africa, with its solar and wind farms and the Noor project, one of the largest solar power plants in the world, are examples of countries leveraging renewables to attract investment.

Investing in these sectors can be very lucrative, provided you understand local dynamics and market trends.

3. Build a strong network

The success of an investment in Africa often depends on local partnerships. Here are some ways to develop a strong network:

• Participate in events like the Africa Investment Forum (AIF) or AFIS (the African financial industry platform).
• Collaborate with local incubators and accelerators to identify high-potential startups.
• Use platforms like Asoko Insight, the Africa Business Angel Network (ABAN), or Moja Fund to access market analyses and identify projects.

In addition to direct investments in local companies or projects, it is also possible to focus on stock market investments.

La BRVM : Une bourse régionale en pleine croissance

To diversify your investments, the Bourse Régionale des Valeurs Mobilières (BRVM) is an interesting option. Representing eight West African countries, it offers a range of stocks and bonds that allow you to:

• Diversify your portfolio with stocks from major African companies.
• Benefit from key sectors such as telecommunications, finance and industry.
• Invest in a regulated market offering increased transparency.

Whether you are a novice or experienced investor, the BRVM offers you access to a booming structured market.

Would you like to learn more about best practices for investing in Africa? Do you need support with your sourcing efforts?

Book a session with our Africa investment strategy experts for tailored advice.