by Benson T
The coronavirus pandemic has very much sent the global economy into recession. The result is that Africa’s economic outlook for 2020 has shrunk from close to 4% in growth to a projected 2%.
For investors then, the question is where to invest even as Africa heads towards its first recession in nearly a quarter a century. The key is to find a sector that has a higher chance of making it through the COVID-19 driven economic crisis.
While air travel, oil sector, and global markets are some of the most hit, it’s hard to predict exactly which industries will survive the shocks. But here are 3 sectors in Africa to invest in now.
Fintech
Before the coronavirus pandemic, fintech attracted the most investment opportunities in Africa. At the moment, fintech appears to be a cool bet. Why? Look at the impact of stay at home calls on the uptake of digital payments.
Companies that offer mobile money like Kenya’s Safaricom and Nigeria’s Paga are an example. Startups like PalmPay are also likely to see an uptick in this period.
Digital education
Many countries have closed schools and e-learning is one of the big investment opportunities around. Africa’s tech startups have launched numerous projects in conjunction with several top companies. EdTech, Eneza Education, and Ubongo are some platforms that could see a massive upscale.
Digital health
Technology has come to the fore as Africa looks to shore up its fragile health systems. Nigeria’s Center for Disease Control recently integrated three startup apps. Examples of startups on the frontline include Wellvis Health, Zipline, mPharma, and Gloedip. With tech solutions from these companies making a big impact now, further growth and funding in the future are more likely.
