A to Z of Investment Opportunities in the Emergent markets of Sub Saharan Africa.
A - Aerospace and Aviation
-Commercial Aircraft Services-
Operating commercial aircraft services on both Domestic and International Routes. Most of the Bilateral Air Service Agreement
(BASA) agreements are in favor of European Air Carriers. Here American technologies can help develop the National Carriers of
these countries in the Sub-Saharan Africa.
-Air Craft Maintenance Center-
An Aircraft Maintenance Center can be located in the Sub Saharan Region to service and maintain Commercial/Corporate Aircrafts in the region of the Sub Saharan Africa.
-Agriculture -
Production of Food, fish farming and increasing the protein intake of the populace here is one of the daunting tasks of the various governments in the region. With a population of 350 million, food production/animal husbandry/poultry production is bound to be a hit here (See Preservation of Agricultural Products, Production of Concentrates from Citrus Fruits etc, Grain Storage Silos technology).
B- Banking (See Finance)
The banking industry is one of the most profitable sector of the Nigerian Economy, gross well over 300% returns on investments annually. This is an area where an investor can not miss it.
-Production of Bread and Wheat products. -
The region has been westernized in their food taste and any venture involved with the production of Bread or any wheat products on a franchisee arrangement is bound to make it especially in the Urban areas of Ghana, Nigeria, Togo, Senegal and Ivory Coast.
-Blasting -
Stone Blasting (see Quarrying) to produce building aggregates is also a good venture in this sub region of Africa.
C - Cabot age (See Shipping)
-Construction -
The Construction of Super Highways and road Networks to connect the various regions of the Sub Saharan Africa is bound to happen sooner or later. Hence the need to position one’s company to benefit from it. These are projects that attracts World Bank and African Development Bank finking. The current African Union (AU) initiative would also help this project. Current Construction Companies in Nigeria are doing very well on both government Contracts and Private/Corporate Patronage. That sector is currently dominated by European Companies. With an annual contract award in the region of over $10 billion. It is an area where the American construction industry should not ignore.
-Construction Equipment Leasing
Construction Equipment Leasing is also a good business here (see Leasing)
-Clay Bricks
(see Kiln Construction)
-Cotton
(see Yarn)
-Concentrates
(see Agriculture)
D - Dredging
The low lying nature of the Coastal Areas of Sub Saharan Africa lends itself to need for sand filling and replenishment to protect the Urban areas (usually along the Coastal Areas) from being flooded by the Atlantic Ocean Surge.
-Sale of Sand -
-Sale of sand from Stock piled to construction companies
-Drying Technology -
The abundance of sunshine lends itself to food preservative through drying technology of herbs, spices, poultry and meat products. There are limited local drying technology for meat and fish.
Introduction of shrink wrapping technology, vacuum packing technology would be very beneficial to the region and a good investment for the bold investor.
-Dry Cleaning -
see under services
E-Equipment Leasing/Rentals of Home Appliances, Corporate fleets and Construction Equipments.
Electronic
-Equipments and Gadgets-
Assembling of quality electronic equipments and gadgets with good brand name would easily displace the current poor quality electronic goods currently been imported from the Far East into the sub region.
-Energy-see Power Generation, Transmission and Distribution (Marketing)
F-Financing of Projects and Business Loans -
Funding of projects, Banking and Finance are two areas that can make lot of profit for the investors in the sub region of the sub Saharan Africa. The financing of Local Purchase Orders (LPO) Contracts, Inventories of Manufacturers raw materials, Insurance etc.
Fish /Shrimp Farming :
With surrounding Lagoons and inland fresh water system, the prospect of Large Scale Fish Farming is very bright, There is a vast market for the sale of the product in the region either in the fresh, or dried/smoked form or if it is canned for export. The region happen to also have a large supply of Shrimps and ships have been known to come all the way from as far a place as Japan to come and troll for shrimps in this waters. Because of protein deficiency in the region investments such as fish farming that will increase the protein deficiency of the region could attract support and funding from World health Organizations (WHO) and United States Agency for International Development, (USAID).
Financing -of Real Estates and Infrastructures
Construction of Roads and installing tolls to recover cost of construction is gradually catching on in the sub Saharan Africa. This opens an area of immerse opportunities for the contractor to utilize its workforce during periods of low activities here in the US.
Other areas are in the funding and owning of Health Institutions and Assisted Living in the area, the availability of Sunny Weather all year round makes it an ideal resort for the Tourist from Europe and the Americas. Colleges/Universities, Student Homes, Stadiums and Amusement and Theme Parks. Because of the absence of these amenities or the aging of the ones available due to poor management these areas are good investment areas.
G-Grain Storage Technology-
Construction and erection of Silos for the storage of surplus grains during harvest and for National Emergencies and as a Commercial Venture. It is estimated that over 65% of grains harvested are lost to pest and rodents and weather in most of the areas of the Sub Saharan Africa resulting in fluctuating market prices of these grains. This tend to discourage farmers from producing more in consequent years resulting in high market prices of these grains. The lack of Grain Silo Technology exposes the region to untold hardship during crop failures, drought and pestilence.
Gas-Gas Filling Plants Facility-
This industrial sector is making waves in Nigeria, since discovery and consequent shipment of Liquefied Natural Gas(LNG)from the shores of the country the demand had been tremendous from both industrial users and on a country to country requests.
The demand for cooking gas for domestic uses has also increased greatly in the sub region. The regular supply shortages are constant reminder of the need to have a region based manufacturer/supplier instead of the current method of importation. The Sub Saharan Africa imports almost all its cooking gas needs.
The use of kerosene for cooking is expensive due to the high oil prices on the world market. The current use of firewood has greatly deleted the forest areas of these sub region with its accompanying ecological degradation hence investors in these areas would benefit from the World Health Organization Ecological Funds (WHO) created to discourage the felling of trees, desert encroachment and environmental degradation.
Glass- Marketing and Manufacturing.
Most of the glass used in the region either as flat glass for windows /doors are imported, small production is been carried on in the production of bottles and crystals. Silicon which is one of the main material for the production of glass is in abundant within the region, hence a manufacturing facility for the production of glass and glass products is an investment worthwhile especially for the construction industry.
H-Hotels and the Hospitality Industry
The growth in the industrialization of the Sub Saharan region currently been witness is already attracting the need for 5stars to 3 stars hotel, we have Abuja- Sheraton, Hilton Nicon and Holiday Inns in Lagos .There is still room for small scale Hotels with world appeal. There are still opportunities for investors in the Sub region. Especially in the State Capitals and the commercial centers of Nigeria, Togo, Benin ,Ghana and Senegal/the Gambia.
Hydraulic Sand filling(see Dredging)
I-Iron rods-
Iron rods used in the Building and Construction Industry, can be effectively produced in the sub Saharan African because of the abundance of iron ores and the coking coal the various efforts made by the government of Nigeria failed for the simple reason of government red tapes and official corruption. Private Ventures are currently producing on a small scale building rods-either high tensile rods or mild/plain rods, using scrape metal iron. There are a couple of Steel Rolling Mills that the government of Nigeria are putting up for sale. Most of the iron/steel requirement of this sub region is imported from either the Far East or the Eastern European Countries. The demand for Iron/Steel rods for Construction and building purposes would continually go up. And an Investment in Liquid Steel Production would open up the area for industrial manufacturing of some of the regions basic demands in consumer goods and appliances.
All the factors that could make the investment in these sector profitable are there -namely cheap and educated labor, raw materials. The region exports its Crushed Scrap Metal to Europe. The market for the Iron /Steel products is in the region of over 300million population with over 45% living in the Urban areas of the region. The Nigeria market alone is over $500 million market annually.
Insurance-
The insurance industry is still growing with prospect for international trades in Shipping Coverage, Oil Exploration Prospecting coverage. The major militating factor against growth of the industry is the relative low capital bases of these insurance companies and their inability to cover the various risks in the areas of Aviation. Oil and Gas, Reinsurance business, Ocean going Cargoes, Shipping Lines etc. There some insurance activities in the areas of Vehicle insurance, Life and Pension but there are still a lot to be done in the areas of Medical insurance, Goods- in- transit and Home insurance etc
Currently most Re-Insurance business/risks are covered by firms in Europe.
J-Joint Ventures and Business Partnerships.(see Banking , Manufacturing.)
Here it is important to exercise caution and understand the government rules and regulations in respect of percentage of foreign participation in each industrial sector of the economy, The method of profit reparation is also very important.
Jute Bag
The use of Jute bags in the bagging of farm produce for shipments to oversea markets, makes the Bagging industry very attractive and the market very wide and diverse. Bags made of polythene are usually favored to bag - Cement, Granulated sugar, Salt brought into the country in bulk. Polythene made bags are gradually displacing jute and paper made bags as industrial bagging material. The availability of high and low grade polythene beads in Nigeria is also an advantage.
K- Kiln Construction/Maintenance
These expertise can be useful in the area of Cement production, Ceramic firing and the production of high Quality Sanitary Wares- like Water Closets, Wash Hand Basins etc.
Production of Clay Bricks is also a profitable venture in view of the abundance of good terracotta/clay soil. The cost of clay brick is very cheap compared to the popular Sand Crete blocks used in building within the sub region. Existing clay brick industry cannot meet the demand for their products.
L- Lighting Appliances
Almost all the Lighting and Electrical appliances are imported into the sub region from the Far east .A well articulated business plan for the production of Lighting Appliances incorporating local symbols and designs would sell and become a market leader in no time.
Lubrication and Blending Plants
Setting up of a lubrication and Blending Plant for the production of Grease, Motor Oils etc
Leasing of Home and Office Appliances, etc
Under the leasing business it can include the provision of a whole fleet of Company cars and Staff Bus. Construction Equipments like Cranes, Tractors, Dumpers/Concrete Mixers, Trucks and Earth Moving equipments. Handling of Haulage Business for various Companies in the distributive trade and manufacturing Sector. Here we has good clients in the Multi-National Oil Companies and the Construction Companies.
Leasing is a very profitable investment area in Nigeria and whole of the Sub Saharan Africa.
M - Manufacturing
By Small Scale Industries. Small food manufacturing plants for the selling of nails paints, electrical bulbs, fluorescent tubes, iron rods for building, ceramic tiles, water closets, electric cables, chalks, roller shutter doors, expanded metal mesh and other consumer goods
Marketing of Power Generating Equipments - Generators, Transformers, Aluminum Cables, Insulators, Changeover switches, etc as a first step to actually manufacturing these items in the Sub- Region.
Marketing of Oil Products-Lubricating and Blending Plants and Sale of domestic gas in bottles (Steel). Gas filling Plants.
N -
O - Oil Industry
Oil and Gas is the backbone of the Nigerian Economy, making the Country the 6th largest Producer in the world and the 2nd largest oil supplier to the US. Sale of pumps needed in the oil exploration and marketing would sell, assembling of these oil and gas appliances in the Sub Region. The market is over a $3 billion market. The region also includes Gabon. Angola and Cameroon.
Oil Supply Services:
Servicing of both On and Off Shores Exploration Platforms Rigs is good investment areas of the region especially the oil producing regions of the sub Saharan Africa. The business is easy in that you are dealing with international companies operating in the area and contracts and payments assured for well executed contracts.
P -Petroleum Industry:
This the backbone of the national economies of at least three countries in the sub region namely Nigeria, Gabon, Angola and recently Cameroon. Opportunities in these countries abound especially as America supplies most of the exploration needs of these region through third party companies based in Europe. Direct representation of the American companies in this region would greatly reduce the cost of operation in this area of business.(see Oil and Gas)
-Pharmaceutical Industry :
Manufacturing and Marketing of common drugs of Cold and Catarrh, Malaria, Tuberculosis, Whooping Cough, Polio, Tetanus, Diphtheria, Measles, Dysentery, Cholera The setting up of Pharmaceutical facilities for the production of these drugs would attract financial Assistance and support of World bodies like the WHO,(World Health Organization) USAID(United States Agency for International Development) and UNICEF (United Nation International Children Educational Funds)Organizations.
-Power- Generation/Transmission /Marketing of Electricity:
The gradual realization of the inability of the government of the countries of the sub Saharan Africa that power generation and transmission can not be treated as a social service but as a private initiative driven venture has opened up a huge market for the generation, transmission and marketing of electricity for both industrial and domestic users. The power requirement of the region is of the order of over 50,000kwatts spanning over five countries of Ghana, Nigeria, Niger, Chad and Republic of Benin. The current source of power in these countries is through the damming of rivers and lakes with its seasonal variables. The November 2004, passage of the Energy(Power)Reform bill in Nigeria has opened up the economy for private investments. The Current Government Utility Company is also having its monopoly broken and up for sale. About 28 smaller companies may emerge from its demise for sale in the 3 distinct areas of Power Generation, Transmission, and Marketing. Future investment in the energy sector would be in the area of Nuclear Power Plants. This seem more reliable and efficient.
Q-Quality Control
R- Road Signs:
Manufacturing of Road signs and Road Marking Machines
-Refurbishment of Used Machineries and Equipments
Refurbishment of Used Machineries and Equipments in either Agriculture, Heavy Civil Engineering Equipments like Tractors, Cranes, Drilling Rigs (for water and oil exploration). Haulage Trucks and other Earth Moving Equipments. Small Spare parts manufacturing outfits would also do well in this region supporting Transportation fleets Railroads, Construction and the Oil and Gas industry.
-Real Estate-Development of Large Scale Housing Estates for Sale/Leasing.
Financing of Large scale Housing Estates and Condominiums for immediate sale is very lucrative and is guarantee to give immediate return on investment of over 100% after the construction period. Development of Office Blocks, Student Homes in University towns, Professional Sports Stadiums are good investments.
-Restaurant Business (see Bread and Wheat Products)
The food eatery business is very rewarding and a good franchise brand would definitely sell in the region.
S-Shipping :
The region is yet to fully benefit from the international shipping laws that allows the importing countries to convey at least 60%of the incoming cargoes on ships flying their colors. Nigeria has enacted laws to enforce this regulation, the country has also initiated development funding to assist Ship owners to the purchase, repairs of existing ships stock. Currently the sector is dominated by Europeans/Asian Shipping Lines. Investment in this area is bound to be richly rewarding.
-Ship Building /Maintenance -
There are efforts at ship building and Maintenance in the region but it yet to fully take off. Local companies are given start-off funds and tax holidays as incentives.
-Sport Financing.(see Real Estate)
-Services- Investment in Rental Services in Cars/Limo, Car Wash, Party Planners and Dry Cleaning Services. (see Leasing)
Investing in Car/Limo rental services, Car Wash, Hiring of Chairs and Tables and Canopies as Party Planners could pay it self in the possible shortest time if properly managed. Dry Cleaning Services is another growing industry, with the increase in the Caucasian community the need for Dry Cleaning industry is very bright.
T-Transportation: Road Haulage
Road Haulage remains one of the means of transporting goods and farm producing areas of the Northern part of the Countries to the Southern part of the Countries where the ports are allocated. The existing railway systems have not been properly managed due to official neglect ,so road haulage remains the most viable option.
The railway system in Nigeria would need a lot funding to invigorate it, but we learnt that efforts are been made in that direction in conjunction with private initiatives to transport petroleum products from the Southern to the Northern part of the country. Investment in either the Railway System or the Road Haulage business would be profitable in the sub Saharan region of Africa.
-Specialized Transportation-as Cooling Vans, Gas Trucks and Petrol Tankers etc.
Specialized Trucks for the distribution of Domestic Gas, Petrol and Transporting Poultry and Meat Products including Fresh farm fruits /Vegetable to the market would be a welcome area of investment . Most of the trucks used in this are either of American or European/ Germany brands.
U-Utilities- (see Power, Water) Provision of Water, Electricity, Telephone, Sewer, Drainage and Gas .
The various governments of the Sub Saharan Africa are now moving away from providing public Utilities, in line with the International Monetary Fund IMF/WORLD BANK recommendation are moving towards private sector provision of these Utilities ranging from the Electricity, Water, Gas, and Road Net work, etc. Telecommunication industry is to a large extent deregulated in this Sub region of Africa and the returns on investment in the region has more than justify the effort from the companies declared annual reports.
V-
W-Water Production: Packaging and Bottling of Drinking Water.
The sale of packaged water has risen phenomenally in Nigeria in the last five years with a target market of over $30 million Dollars annually. The potentials of the Market is huge especially with the hot dry season and the non provision of public taps. This is an investment area where the Water Filtration Equipments and Water Packaging / Bottling are very much in demand and are quick sell. Most of the equipments are imported from the Asian countries of Taiwan, China, South Korea and Malaysia.
-Water Drilling Rigs: Provision of Water, Drilling of Underground Aquifers.
Provision of Water is the cornerstone of the Health Policy of the Prevention of the spread of Diseases in this region and with adequate Financial Support from the African development Bank (ADB) and the World Bank. A regular annual Contract for the Drilling of Underground Aquifers is an assured contract for the bold investor who has Drilling Rigs that can go to the 200-300 m range. While the Northern part of the Sub Saharan Africa is made up Old Rock formation and would need to get to over 150m to get to a good aquifer the South is composed of Sedimentary rock formation that would need to be over 120m deep to get to a Saline free drinkable Water formation. The incursion of the Atlantic Ocean poses a major problem to sourcing for a Saline Free Underground Water source.
-Wine Production:
The region has a local variety of Citrus Fruits- like Apples, Grapes, Oranges and Mangoes that can be used in the production of Wine and other alcoholic beverages but there is little local utilization of these natural raw materials. The Wine production market is very big with Wine (Champagne & other Sparkling Wine) importation into the Nigeria Market alone topping the $5millionUS dollars mark.
X-
Y-Yarns for Weaving :
The Textile Industry is suffering from a gale of massive uncontrolled importation of garments and Used Clothing and Apparels from the Asian and European Countries. The various government of the region are making efforts to curb the smuggling of finished textile into the Region. There still a future for the re-invigoration of the textile industry.
Z -
Zinc- Coated Corrugated Roofing Sheets:
This is the commonest of the roofing materials in the region with the disappearance of the thatch roof due to the non easy availability of the thatch fronds. It has a ready made market for this product.