The outbreak of the COVID-19 pandemic and its eventual spread around the world has exposed weaknesses within government institutions, international organizations, corporations and all sectors leading mankind to the realization that technology is an inevitable tool as far as the future of humanity is concerned. If you are an investor looking to invest in Africa, you will however have to take into consideration specific context as far as this sector is concerned. Lets look at the 5 key tech project areas that will present the safest investment opportunities.
According to Finnovating for Africa, Africa is home to 491 fintech startups, which are together building a new vision for the financial service industry in Africa. As of June 2019, Africa’s fintech companies had raised $320 million in funding since January 2015 and the ecosystem has surged 60% in the last two years. By the end of 2019, African fintech startups based on the continent raise over $53-million in 25 deals (in disclosed deals) making this sector one of the hottest on the continent. With the outbreak of COVID-19 and a fast move towards a cashless economy, this still remains one of the safest and productive sectors to invest in.
One of the sectors that has been greatly hit everywhere around the world especially in most parts of Africa is education with social distancing and knock-down making it impossible for normal classroom settings to thrive and forcing many to resort to online learning as the only way out. Against this backdrop, it is primordial for technology to be given more attention as a potential tool to savage the future of mankind. This sector will be one of the safest to invest in now and after the pandemic.
As internet coverage and mobile phone usage increase in Africa, healthtech is one of the safest sectors to invest in and also one of the most impactful. In an era of social distancing, being able to access medical services from anywhere is key especially for people in rural areas who couple with social distancing have difficulties accessing medical facilities because of poor road network.
Agritech also referred to as the use of technology in agriculture with the aim of improving sustainability, efficiency, and profitability. It is a $7.8 trillion industry with investments reaching $2.6 billion. With agriculture as a solution to food insecurity on the continent, increasing tech startups have emerged and developed technologies that are easing the work for farmers. From artificial intelligence to drones, the sector is both safe and ready for investments.
Automation and AI
From self driving cars to robots, and other machines, Africa stands to benefit a lot from this technology. True there are very scary forecast about the dangers it might pose to the continent but just like the internet, automation and AI have today proven to be useful to the continent. Tech Savvy countries on the continent like Rwanda have greatly mitigated the spread of COVID-19 through the use of drones and robots hence reducing human to human contact and thereby saving the lives of many medical personnels. This is a growing sector on the continent worth investing in.