Periods of accelerated change often reveal opportunities for remarkable growth and resilience. Across Africa, a continent poised for transformation, several key sectors are demonstrating significant potential. For middle market business leaders ready to navigate this dynamic landscape, understanding these growth areas is the first step toward building a confident future.

The implementation of the African Continental Free Trade Area (AfCFTA) is a powerful catalyst, aiming to harmonise trade regulations and boost intra-continental commerce. This creates a more integrated and accessible market, empowering businesses to expand across borders and seize new opportunities.

Food supply chain logistics in Africa 

Food systems, cold chain logistics, and infrastructure development are key for fostering business growth and economic resilience in Africa. With a growing population and increasing urbanisation, the continent faces significant challenges in ensuring food security that can match the growth. Investments in climate-smart agriculture, improved market access, and resilient food systems are critical to addressing these challenges. For example, the $2.75 billion Food Systems Resilience Program for Eastern and Southern Africa aims to enhance agricultural sustainability, integrate regional markets, and strengthen food crisis response mechanisms. Similarly, the $1.17 billion West Africa Food Systems Resilience Program focuses on improving food security through digital advisory services, regional trade integration, and adaptive agricultural practices.

Infrastructure, particularly in cold chain logistics and irrigation systems, plays a vital role in supporting agricultural value chains, reducing post-harvest losses, and transporting pharmaceuticals. 


 

“For most countries in Africa, infrastructure is more than a national asset; it is a continental bridge. Building resilience into every intra-African channel and energy line is key to unlocking Africa’s next decade of growth.”

Paulo Lopes
Managing Partner and CEO, Mozambique

Projects such as the $175 million Sahel Irrigation Initiative Regional Support Project, which promotes small and medium-scale irrigation, highlight the importance of infrastructure in boosting agricultural productivity and resilience. Additionally, initiatives like the $95 million Malawi Agriculture Commercialization Project (AGCOM) aim to enhance the commercialisation of agricultural products, creating opportunities for smallholder farmers and improving market connectivity. By addressing these critical areas, Africa can strengthen its food systems and create a foundation for sustainable economic growth.

Renewable energy: Transforming Africa’s energy landscape

Africa possesses vast renewable energy resources, including 60% of the world's best solar potential, yet this remains largely untapped. The International Energy Agency highlights that around 600 million people in Africa still lack access to electricity. This deficit presents a major opportunity for investment in renewable energy projects.

Harnessing solar, wind, and geothermal power offers a direct path to sustainable industrialisation and improved living standards. Key investment areas include:

  • Utility-scale renewable energy generation.
  • Decentralised mini-grids to power rural communities and industries.
  • Modernising grid infrastructure to support clean energy integration.

Achieving universal access to electricity by 2035 calls for a targeted investment of $15 billion annually, as highlighted by the International Energy Agency. Decentralised options, such as solar home systems and mini-grids, are vital for connecting the unserved population living in rural areas. Dedicated funding at this scale can accelerate the deployment of renewable solutions, offering a cost-effective, rapid pathway to electrification that empowers local economies and improves quality of life.

To support this transformation, private investment is essential. Modernising national grids to integrate clean energy sources, alongside establishing supportive regulatory frameworks, will build the confidence needed to attract capital. 

SME financing: Unlocking Africa’s economic engine 

Small and medium-sized enterprises (SMEs) are the foundation of Africa's private sector, accounting for around 90% of African businesses and 80% of employment. However, they face a severe annual gap of $1.3 trillion. This lack of capital restricts their ability to scale, innovate, and compete.

Addressing this challenge is crucial for unlocking the continent's full economic potential. Innovative financing models, including private credit and fintech solutions, are emerging to provide SMEs with the growth capital they need. Meeting these investment needs can fuel job creation and drive broad-based economic development, enabling them to participate more fully in the single market created by the AfCFTA. 

Mining innovation and modernisation in Africa 

Africa's rich mineral reserves are essential for the global energy transition. The continent holds a significant share of the world’s resources for critical minerals like cobalt, manganese, and platinum. As global demand for these materials grows, the mining sector is undergoing a profound transformation.

The mining industry is undergoing a transformation as innovation and modernisation introduce advanced technologies such as AI, automation, and robotics. These advancements are reshaping operations, improving efficiency and safety while supporting more sustainable practices. Digitalisation offers opportunities to optimise resource extraction, reduce waste, and strengthen environmental responsibility. As global demand for critical minerals continues to rise, the adoption of innovative solutions will be key to balancing growth with environmental care.

The focus is also shifting towards greater local value addition and sustainable practices. The African Development Bank is promoting investment in local processing and manufacturing to ensure more of the value chain remains within the continent. This opens new avenues for businesses specialising in:

  • Advanced extraction and processing technologies.
  • Renewable energy solutions to power mining operations.
  • Digitalisation and automation to improve efficiency and safety.

This evolution enables a more equitable and sustainable approach to resource extraction.

Digital infrastructure: Building the foundation for growth in Africa

Digital transformation is a powerful driver of economic development across Africa. Expanding internet access alone can significantly boost GDP growth, and investment in digital infrastructure is therefore a strategic priority. The mobile sector alone added $140 billion of economic value to Sub-Saharan Africa's GDP in 2023, representing 7.3% of the total. This emphasises the immense potential that further digital integration holds for the continent.

As businesses and consumers increasingly move online, the demand for reliable connectivity, data centres, and cloud services is soaring. This digital backbone is essential for fostering innovation and for integrating Africa more deeply into the global economy. To support this growth, mobile operators in Sub-Saharan Africa invested over $28 billion in capital expenditure over the last five years and are expected to invest a further $62 billion between 2023 and 2030. These investments are fuelling the expansion of 4G and the nascent rollout of 5G networks, which currently cover 44.3% and 1.2% of the population, respectively.

This expanding infrastructure is catalysing growth in key digital sectors: 

Fintech: The fintech sector is a standout example, with mobile money platforms transforming financial inclusion. In 2023, the mobile ecosystem supported 3.7 million jobs in Sub-Saharan Africa, many of which are linked to the burgeoning digital economy.

E-commerce: Digital platforms are connecting smallholder farmers and entrepreneurs to broader markets. In Nigeria, for example, smallholder farmers are using generative AI to gain access to valuable information and to undertake research into their agricultural operations and overall welfare. 

Innovation hubs: A growing network of tech hubs and start-ups is tackling local challenges with global solutions. In Senegal, one company delivers tailored mobile advice on crop disease and irrigation by analysing farmer and crop data. Meanwhile, a Ghanaian startup provides highly localised weather forecasts via SMS, enabling farmers to optimise planting and harvesting schedules using even the most basic mobile phones.

By continuing to invest in its digital foundations and nurturing innovative ideas, Africa is poised to unlock new avenues for sustainable growth, empowering its businesses and people.

Private equity’s growth in Africa

Private equity in Africa is gaining momentum; in 2024, private equity fundraising in Africa more than doubled to US$4.0 billion, the third-highest level in a decade. Domestic investor commitments, especially from pension funds and corporates, rose significantly, with development finance institutions maintaining a strong presence.

Deal volume increased by 8%, while total deal value edged down to US$5.5 billion, reflecting a shift to smaller, targeted investments. Investors focused on infrastructure, financials, healthcare, agribusiness and technology, with sector-specific funds and private debt gaining traction. By the end of 2024, Africa-focused fund managers had accumulated approximately $10.3 billion in dry powder. This substantial reserve of capital, primarily concentrated in private equity and infrastructure funds, highlights a robust near-term investment pipeline and signals a promising future for private capital activity on the continent. 


 

“Private equity’s and credit funding's growing footprint in Africa is not just fuelling businesses, it’s reshaping ecosystems and our ways of life. The surge in available funding is catalysing investments in digital & AI infrastructure, renewable energy, electric vehicles network and SME credit, but its ripple effects are most visible in the transformation of retail and logistics.

As consumer spending rises and urbanisation accelerates, private equity is enabling the build-out of cold-chain logistics, modern retail platforms, and last-mile delivery networks. This convergence of capital, consumption, and connectivity is redefining how goods move, how people shop, consume products and how businesses scale. It’s a signal that Africa’s growth is becoming more integrated, more digital, and more inclusive, and we must be ready to engage with this momentum.”

Dinesh Munu 
Head of Assurance, South Africa