15 Profitable Businesses To Start In Nigeria Or Africa
There are a lot of businesses in Nigeria and other African countries for anyone with the right capital to start. However, the profitability ratio of most of these businesses can be low for some and high for others due to many reasons like location, market demand, competition and several other factors beyond the entrepreneur’s control.
While this is a market reality, many of these businesses can also be very profitable if they’re started within the right conditions especially as they usually have steady market demand, ease of distribution, and much more.
If you are looking to start a business that will profitably generate income for you, here are 15 profitable businesses to start in Nigeria or Africa:
1). Supermarket Business:
The supermarket business as of 2021 is a $12 trillion-dollar global industry and is one of the biggest and fastest-growing industries in Nigeria and Africa as a whole.
Across Africa, new supermarkets and grocery stores continue to spring up in every major town and city, especially since they are consumers’ preferable go-to stores for all their basic commodity shopping.
While supermarkets can be started with millions of dollars, they can also be started with less than $1,000 in Nigeria or Africa as a whole, and they can be very profitable.
With a great plan, the right products, a great location, good customer service and a steady market, you could start and grow a supermarket into a multi-million dollar business.
2). Cosmetics Production Business:
Another equally profitable business you could delve into anywhere in Africa is the cosmetics production industry.
The cosmetics production business is thriving today because of the great attention shift of a lot of people, largely women, towards personal care on the continent.
Cosmetics production could include products in skincare, haircare, fragrance and makeup, amongst others.
By starting a business in this industry, you would be joining a multi-billion dollar behemoth.
3). Automobile Business:
The automobile industry continues to enjoy upward growth thanks to the increase in the standard of living in Africa.
Until recently, exotic and good quality corporate cars were beyond the reach of people outside the elite groups. But with the fast-growing African economy, more people can now afford to own cars, with some acquiring them via loans.
You could start a brand new or used car dealership and take advantage of this rising market.
To start a car dealership, you’d need the right capital and a trusted distribution model. On the other hand, you could network with foreign automobile businesses who might be willing to take you up as a local dealer for their vehicles.
4). Oil and Gas Business:
The oil and gas business has been the gold mine in Africa’s oil producing countries for several decades, with the presence of private firms in the sector contributing even further to its growth over time, in spite of international competition.
Notwithstanding, oil and gas remains top on the list of highly profitable businesses in Nigeria because they are resources that drive the nation’s economy forward.
With the industry still vibrant, there are many aspects of the oil and gas business to venture into and you could play a role in one whether as a direct player or as a broker.
5). Coffee Bean Business:
Coffee bean farming refers to the cultivation of coffee for trade and consumption purposes. Presently, Nigeria exports over 2,100 metric tonnes of coffee beans but the number could be many times more as we’re not top 10 globally in coffee production and exports.
Nonetheless, the coffee bean farming is a lucrative business that anyone interested in the agroindustry could invest in and take advantage of the growing international market.
6). Frozen Shrimps and Prawns Production Business:
Love frozen foods? This might be your chance to build a multi-million dollar business in the frozen shrimps and prawns business.
The frozen foods industry is a lucrative business sector but you could focus on shrimps and prawns as they’re highly valuable both in the local and international markets.
On one hand, you can choose to start your shrimps and prawns farm while on the other hand, you can start a shrimps and prawns trading or brokerage business with little or no capital.
You could start small and grow your business into a large local and international trader of frozen shrimps and prawns.
7). Oil Spill Cleaning Business:
Oil spill cleaning is a response to oil spillage, especially on water bodies. To be sure, this is a technical job, requiring professional training and expertise.
As an investor looking to go into oil spill cleaning, you need to employ the services of seasoned engineers. In addition to that, it is important to make them undergo continuous training.
Furthermore, an oil spill cleaning requires specific government permits. Once the basic factors are put in place, you have a lucrative business on your hands!
8). Scrap Metal Collection Business:
Scrap metal collection is the business of gathering waste metals and iron materials and delivering them for recycling. On the surface, scrap metal collection appears like a brown-collar job but it is a highly profitable business idea.
You only have to set up a scrapyard, equip young energetic people and train them on what valuable metals to look out for. Furthermore, you need to build supply networks with metal recycling companies that will buy the metals locally or internationally.
9). Chia Seeds Production Business:
For a start, one of the benefits of starting a chia seed farming business in Nigeria or other African countries is that you get to enjoy a lesscrowded market for a long time due to the low interest of entrepreneurs to cultivate the crop.
The sector is still at its nascent stage but it holds lots of promise. As of 2019, Nigeria exported $190,000 worth of chia seeds meanwhile the industry was worth about $66 million globally at the time.
With rising global demand and underproduction on the part of Nigeria, venturing into Chia Seeds farming and shipping it to international buyers is a great venture to start up.
10). Leather Production Business:
Leather is in hot demand in almost every endeavor or human sector. First, the fashion design industry requires leather for production of jackets, shoes and other clothing materials. And also, it is useful for the production of protective materials such as gloves and work boots; making it an indispensable material in several industries.
Based on the global demand as presently constructed, it is impossible to run out of the demand for leather production businesses.
Although it requires more investment in labour and equipment for processing than average business, it yields a lot of profits.
11). Candy And Chocolate Production Business:
As of 2019, chocolates alone generated around $140 billion in global revenue with the global candy market valued at around $79billion as of 2021.
The demand for both candy and chocolates are massive, especially as kids and adults alike are heavy consumers of candy and chocolates everywhere in the world.
One of the benefits that the candy and chocolate production business enjoys is a ready market. Nonetheless, you need to develop a marketing strategy that will give you marketwide acceptance.
You could start a chocolate and candy production business and target supermarkets, small retail shops, grocery shops, schools, and many more segments as your distribution channels.
12). Dates Farming Business:
Dates enjoy a global consumption of about 8.5 million metric tonnes per annum with a metric tonne going for over $3000 per ton. To put it into perspective, that’s a large market base for a fruit business.
In particular, Nigeria is one of the key exporters of dates in the world. And this makes dates farming one of many profitable businesses for any agropreneur in the country to start.
13). Bread Supply Business:
Bread is another food business that enjoys massive demand. Everywhere in Nigeria, Africa and beyond, bread producers smile to the bank because their products almost always sell-out everyday. The business involves minimal risks and little maintenance services.
With a good startup capital, great bakery skills, the right recipes, a great location, and an amazing distribution channel, you can get your bread supply business set up and growing very quickly.
The major issue with bread business, however, is that the industry is heavily saturated. Notwithstanding, once you have a trusted distribution channel and a great recipe, you can carve a name for yourself.
14). Fruit Juice Production Business:
Fruit juice production is one of the most profitable businesses in the food and drinks production industry in Nigeria and other areas in Africa. It enjoys a stable market from individuals, hotels, restaurants, eateries, supermarkets, and more.
Although there are several fruit juice brands in the industry, there is still room to make a mark in the industry. Novelty, new recipes, great branding, good ad strategy, and trusted distribution channels are factors that could help you make a lot of profit from the fruit juice production business.
15). Digital Marketing Agency:
Digital marketing describes all activities of promoting, engaging, buying and selling products & services on the internet.
You could acquire the right skillset, set up a digital marketing business and help clients grow their brands and sell more products & services for a one-time or monthly fee.
To Sum It Up
There are a lot of profitable businesses to start in Nigeria or Africa. Finding the right one that’s most feasible for you to execute will be a great start to building a great business that can potentially change your life.
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What are your thoughts on these profitable businesses to start in Nigeria or anywhere else in Africa? Let me know by leaving a comment below.
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