Africa as a continent has a huge potential for future growth. Which makes it a favourable place for investment I.e If you plan on extending your business to this part of the continent. 

The research gathered by the UN Conference on Trade and Development between the year 2006 and 2017 reveals that Africa has realised an 11.4% rate profit for every foreign investment.

Also, Africa is so much populated with the youth, which is unfailingly the world’s market force if invested upon. Investing in Africa won’t just increase the wage rate for African countries it will also help reduce the rate of unemployment thereby increasing the workforce population.

Reasons to Invest in Africa

Africa is rich in resources and also ranked as number 1(one) in terms of economic growth. It’s a sneak peek that Africa is a favourable place not just to live but to also invest in and that’s why Shikana is a favourable place in East Africa(Tanzania) to invest in. 

They are a law firm that provides both legal and business solutions to investors to avoid going that aims at investing in Africa. Here are a few reasons why you should invest in Africa:

  • Increasing workforce population

It is no doubt that Africa’s workforce population is mostly dominated by the youth and middle class which makes Africa the top 7 continents that have experienced economic growth in the entire globe. 

That apart, there is a need for investors to invest in a viable continent like Africa because of the varied consumption rate by consumers here in Africa. 

Consumers here in Africa are mostly of the middle class with a taste for quality and diversity, which is a potentially high-income rate for any investor that can look beyond the risk of investing in Africa.

  • Technological change

The use of technology in Africa is gradually rising. And the mobile networks that started in East Africa popped the global economy open. With the current century, we are in I.e 21st century. It will be rare not to see someone that owns a technological gadget with companies inclusive. 

Many companies like Utiva now use technological gadgets to pass on knowledge to their students at their learning centres. Research done by Global system for mobile communications (GSMA) shows that there will be 475 million internet users in sub-Saharan Africa by 2025.

  • Slight debt levels

Compared to the other parts of the continent, the debt level of Africa is relatively low. Which makes headway for foreign investors. For instance, the UK’s debt level is about 70% while Africa’s debt level is about 16% which means that the taxes in Africa will be little compared to that of the Uk. 

Paying up little taxes as an investor is not only a good thing for the company, it extends to providing a quality life for the people in the African countries.

How to invest in Africa

For a while, Africa has been quite frustrated by the war and regime changes which have driven few foreign investors away unlike. Contrary to Europe and America, Investing in Africa varies from investing in America because of their regions and resources. 

For instance, South Africa is known for producing and mining raw materials like gold, diamond and platinum. For Northern Africa like Algeria, Egypt, Libya etc you will realise that they are known for the production of crude oil. 

The easiest way to capitalize in Africa is through the ETF(Exchange Trust Fund) and mutual fund. These are Us stock exchanges that are being traded on their platforms. The good thing about this is that the cost is relatively low compared to creating a portfolio with foreign stocks that trade on the foreign stock exchange platforms. 

Top 5 African countries to invest in 2021


In the past year, Mauritius has implemented 4 reforms to help investors have quality satisfaction when involved in investment. This includes: 

  • Outsourcing of sewerage structure and connection.
  • Facilitation of cross border trade.
  • Simplification Of ownership transfers with a reduction of transfer costs.
  • The beginning of a recourse device for the edition of service standards.

Over the years, Mauritius has built a formidable prestige, which has made Mauritius a credible investment platform for investors. Major sectors in Mauritius to invest in are the ICT, tourist centres, banking sectors and a few others. 

Why Consider Mauritius as a favourable investment platform 

  • Creating a new business in Mauritius is easy and swift. It can take a maximum of 4 days to create a new business.
  • International firms ensure the security of investors through the initiation of impressive taxation.
  • The government encourages foreigners to invest in their country through the provision of incentives and facilities to attract these foreign investors.


The beautiful thing about this country is the will to build a reasonable and wealthy nation regardless of its population density. They have collectively partnered with few football teams like Arsenal Fc and Paris Saint to market Rwanda as a centre for tourist attraction.

They also have worked towards building a formidable African country through the African Continental Free Trade Area(ACTA). Rwanda has so many other sectors you can invest in. They include mining, ICT, Agriculture and a host of others.

Reasons to invest in Rwanda

  • Entry to open platforms

With the high population density in Rwanda in cooperation as with the increase in economic growth. It is easy to gain entry to the markets in Rwanda especially for the countries sharing borders with Rwanda.

  • Like I earlier talked about Mauritius, the same applies to Rwanda. Creating a business in Rwanda is easy and swift.
  • There are so many untouched business opportunities in the following areas like agriculture, energy, ICT, infrastructure, education, tourist centres and few others.
  • There is no doubt that risk is associated with starting up a business. Although the risk associated with starting up a business in Rwanda is relatively low.


Kenya, an African country with huge potential for investment by foreign investors. Their consistent improvement is driven by both the government and the private sector in the industry environment. In 2019, she delivered the greatest number of business reforms on the African continents as stated by Adan Mohammed, Secretary of the industrialization cabinet. 

Among other sectors to invest in is electricity, the country has greatly invested in the distribution of lines and transformers. Additionally, they have also created a power station that resuscitates power as often as possible which have increased the productivity of the banking institutions in Kenya.

    Key reasons to invest in Kenya

  • Kenya has lifted bans that prevented the free flow of trade and investment from private sectors.
  • Kenya is a key part of several trade-related decisions.
  • Kenya constantly brags about the number of intellectuals and skilful workforce that have been produced in and within their country.


Tanzania is a beautiful developing country with so much potential for foreign investments. One of the major reasons Tanzania is so high on this list is due to the government’s readiness to support investors by enacting laws that favours the growth of foreign investments. 

Its Global sophisticated tourist attraction centers include (Serengeti, Kilimanjaro, Ngorongoro, and the islands of Zanzibar) provide investment opportunities for foreign investment. Aside from this, there are a few other sectors to invest in Tanzania, which includes:

  • ICT

Due to an increase in the use of technology. This sector remains a potential investment that will increase the economic growth of the country. Currently, they have been an extension and development of towers to boost the mobile networks in Tanzania. 

Mobile banking in the Tanzania markets is yet to reach its full potential. However, if investors look into these sectors, there is a possibility of matching the mobile usage of Kenya in the next few years.

  • Real Estate

As the price of the currency increases, it becomes a struggle for local investors to buy properties. However, few foreign investors are gradually moving towards this sector to invest in it. 

The good thing about investing in this sector as a foreign investor is that you could partner with the Shikana law group. They provide solutions to investment-related issues in Tanzania.

  • Agribusiness

Due to the high need for vegetables, meat and dairy. The revenue has increased in which most commercial traders have a great deal keeping up with. And so, if this sector is open foreign investors to dive into. The GDP growth will increase by 5.5%.

Reasons to invest in Tanzania

  • The government policy respects the variety of opinion and also guides investment activities in Tanzania. According to Tanzania policy, 1997(No.26 of 1997) the policy is an act to guide investment-related activities in Tanzania to provide favourable conditions for investors.
  • Occurring investors are ready to enlarge their business as represented in the research conducted by the Tanzania investment centre (TIC) and the National bank of commerce (NBS).


A Northern African country that has maintained its position in the second-best category of countries in terms of ease of doing business in the world. The safety and stability of the country have made foreign investors effortlessly invest in the country.

Furthermore, the growth rate has been on the increase since its inception to date.

If you are, however, confused about deciding among the best top African countries to invest in, in 2021. 

I believe this article will guide you and if you are ever in doubt of a firm to provide you law and business solutions in investment-related matters then Shikana group is the go-to firm in East Africa. 

Tell us in the comment section which of these countries you’d like to invest in and we’ll take you from where you are to where you want to be.

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