The coronavirus pandemic has pushed the global economy very much into recession. As a result , the economic outlook for Africa for 2020 has shrunk from nearly 4% in growth to a forecast 2%.
The question for investors then is where to invest, even as Africa heads toward its first recession in almost a quarter of a century. The key is finding a sector that has a greater chance of making it through the economic crisis driven by COVID-19.
Although air travel, the oil sector and global markets are among the most affected, it is difficult to predict exactly which industries will survive the shocks. But here are 3 industries to invest in Africa now.
Fintech had attracted the most investment opportunities in Africa before the coronavirus pandemic. Fintech is definitely a good investment at the moment. Why? For what? Look at the effect on digital payments that stay at home calls has.
Companies providing mobile money such as Safaricom in Kenya and Paga in Nigeria are an example of this. Startups such as PalmPay will also likely see an uptick in this time.
Many countries have closed schools and e-learning is one of the big opportunities for investment around them. Tech entrepreneurs in Africa have launched various ventures in collaboration with many top companies. There are some platforms EdTech, Eneza Education, and Ubongo that could see a massive upscale.
Technology has emerged as Africa tries to improve its weak health-care systems. Three technology applications have recently been incorporated into the Nigeria Center for Disease Control. Examples of frontline startups include Wellvis Wellness, Zipline, mPharma, Gloedip and others. With tech innovations from these companies making a major impact now, more growth and investment are more likely to follow in the future.
Investors can diversify their portfolios and look for these opportunities to ride COVID-19.