The 9 Best African Countries to Invest in 2022

It is no surprise that Africa is one of the fastest-growing markets in the world. With a population of over one billion people, there are plenty of opportunities to be had. As incomes continue to rise, more and more people are beginning to buy new products. Now with improved mobile connectivity, Africa has become an attractive market for e-commerce startups. With these nine countries at the forefront of growth in 2022, it's worth exploring where you might want to invest your time and money this decade.

1. Nigeria

Nigeria is the most populous country in Africa with a population of 199 million. With an internet penetration rate of just over 20 per cent, Nigeria has one of the world's lowest rates and the potential for future growth is huge.

With a population that owes its purchasing power to booming industries like agriculture, oil production, and telecommunications, Nigeria has the advantage of being able to tap into these key drivers of economic growth.

Some experts are predicting that by 2025 there will be more millionaires in Nigeria than anywhere else in Africa. The country has already shown its potential by becoming one of the top five largest economies on the continent.

2. Ethiopia

Ethiopia is one of the fastest-growing African countries that's projected to grow at an annual rate of 5.5 per cent between 2017-2022. With a population of 102 million people, Ethiopia is quickly emerging as an economic powerhouse in Africa.

The country has the fifth-fastest growing economy in Africa and ranks 54th out of 190 economies according to the World Bank's latest Ease of Doing Business report. The country also boasts the fastest internet connection speed in Africa (at 7.4 Mbps).

Ethiopia was ranked 148 out of 190 countries on the UN Development Program's Human Development Index (HDI). However, HDI statistics are based on 2005 data, so it's unclear how much progress Ethiopia has made since then.

3. Zambia

If you're looking for a great African market that is currently experiencing sustained growth, Zambia should be high on your list. With a GDP of $17.3 billion and a population of 13 million people, Zambia has plenty to offer entrepreneurs.

This country's e-commerce industry is growing at an impressive rate, with online sales expected to reach $103 million by 2021; this equates to seven per cent annual growth. To put this in perspective, this figure is more than double the rate it was in 2017 (three per cent).

Zambia's e-commerce industry is expected to grow even faster during 2022 due to increased access to the internet and mobile connectivity across the country. With the largest economy in Africa and a population that is set to grow quickly, Zambia is definitely worth exploring as an investment opportunity.

 4. Kenya

Kenya has the most developed e-commerce infrastructure of any African country. Kenya is ranked 61st out of 190 countries on the World Bank's Ease of Doing Business Index, which measures how business-friendly a country's regulatory environment is.

Kenya's infrastructure includes advanced mobile payment systems, an online credit bureau, and numerous e-commerce sellers. The high level of mobile phone penetration in the region of over 60 per cent allows for the swift adoption of digital commerce.

5. South Africa

South Africa has a population of over 55 million people and is the most industrialized country on the continent. With a GDP of US$711.8 billion, South Africa is ranked as one of the 20 largest economies in the world.

What makes this power player on the African continent so attractive to business owners? For starters, it has a relatively high literacy rate with more than 90 per cent of adults able to read and write which provides enormous potential for online commerce. Not to mention there are more than two million active Facebook users as of this past April.

With an average internet speed that's five times faster than America's, South Africa is primed for success in digital marketing. It also doesn't hurt that English is one of the main languages spoken across the country, making it easy for non-Africans to enter into e-commerce partnerships with local
businesses or websites.

6. Ghana

Ghana's economy is forecasted to grow by 3.1% in 2022, a growth rate that is the sixth highest out of any African country. The country benefits from a free-market system and a relatively stable political environment, which has resulted in an increase in foreign investment. In addition, Ghana's proximity to Europe and other emerging markets makes it an attractive market for international investors looking to get a foothold in Africa.

7. Rwanda

Due to its proximity to both the Indian and Asian markets, Rwanda is positioned as the gateway to East Africa. This country has a solid infrastructure for e-commerce startups, lower rates of internet fraud, and less competition for market share.

8. Tanzania

Tanzania is the second-most populous country in Africa. It has a GDP of $71 billion and an estimated population of 55 million. Tanzania's government has taken steps to make e-commerce easier for both companies and customers, with the Tanzania Communications Regulatory Authority (TCRA) announcing new regulations to enable online sales.

9. Uganda

Uganda is a country that has been given the nickname "Silicon Savannah." It's a telecommunications hub and its capital, Kampala, is home to many ICT-based companies. The majority of the population is under the age of 35 and has an increasing need for digital services. The country also ranks as one of the fastest-growing economies in Africa with a GDP growth rate of 5.8 per cent.