Profiting Post COVID: The Businesses That Would Thrive On The African Continent

In terms of resources, few continents are as robust and viable as Africa. From Nigeria to South Africa, from Ghana to Rwanda, Kenya to Mozambique, Egypt to Sierra Leone, there is a wealth of untapped human and natural resources all over the place. Much is made of the “developing status” of African countries but it is welcoming to note that more attention is being paid to the business potential inherent in the African soil and the African people.

Such is the viability of the business sector on the continent that a record-high $1.34 billion was attracted by African startups alone in 2019. According to WeeTracker, fintech alone received almost $700 million, solidifying the steady growth of the industry in the region. Over 75% of the 427 deals were in Nigeria (which had the highest amount of investment), Kenya and South Africa.

The implication is that the business ecosystem in the continent is continuing to gain visibility due to its potential for growth, expansion and high rewards. There are yet untapped industries all over Africa which have the potential for huge profitability for individual investors and group enablers.

Much is made of the IT industry and all tech-enabled industries because of the seeming ease with which capital is sourced. However, the individual service industry all over the continent is still a growing one and remains insufficiently tapped. The knowledge industry for one is a thriving one but only in parts of Africa, like Nigeria, South Africa and Ghana which continue to lead the way on the business fronts where the continent is concerned.

In the midst and aftermath of the COVID-19 pandemic, there are reasons for the conviction that several businesses are primed to thrive as a direct implication of the pandemic and the resulting disruption to the economy of all nations of the world.

If properly harnessed, budding entrepreneurs can quickly make headway into business in any part of the continent and lay the building blocks to rapid success. While tech-enabled ventures will continue to lead the way in startup growth, these four services are certain to see an increase in patronage in the post-COVID period, which is now.

Tax and Income Planning Consultancy

Due to the depletion in income sources for both businesses and governments, tax and income planning advisory services are already witnessing a boom and will experience an even greater boom in the coming months.

Businesses are in desperate need of guidance in balancing their books. This means planning income strategies and maintaining fiscal compliance with regulatory bodies simultaneously. Tax advisory firms and independent tax consultants ought to be ready to plug into the increasing need in this niche.

On a large scale, big firms like KPMG, PwC and Grant Thornton may be best placed to gobble up the big firms in need of fiscal advisory services. However, independent service providers cannot overlook the opportunity of being available for small and medium enterprises all over the continent who require the same services. This is a good time to dress up and show up. Many independent consultants will be required in this post-COVID era just to get the books of medium scale businesses in order. But where the great need will be is in income planning and strategy.

The lockdown across the globe forced many businesses in Nigeria and Ghana, as with most parts of Africa and the world too, to lockdown permanently. The surviving ones need guidance to navigate their way through this uncertain period, lest they sink in the sea of reduced and uncertain revenue. And guess who will be willing to pay top dollar for advice that will fetch them top dollar?

On a different note, all governments will have felt the pinch of the pandemic which forced all nations on the African continent to shut their doors. After effectively shutting their economies, governments will be in desperate need for money to make up for lost revenue. The World Bank estimates that Africa is set to lose around 79 billion dollars in output alone and the continent may fall into recession.

As a combative measure, it is expected that governments will pursue aggressive taxation and revenue collection policies that will affect businesses significantly. Indeed, countries like Sierra Leone, Democratic Republic of Congo, Liberia, Kenya, Nigeria and Uganda have been partnering with the World Bank in recent years to implement strategies that will increase domestic tax revenue. Those strategies are only going to get more aggressive. For businesses, not running foul of tax laws is the name of the game. Again, guess who will be willing to pay top dollars for sound advice that will save them serious money in taxes?

Coaching Services

The coaching industry is predicted to generate around 250 million dollars by 2022, in the United States alone! In Africa, the industry continues to grow from strength to strength.

In the post-COVID era, this industry is going to witness a boom. The boom is evident already. Given the state of affairs across sectors of the economy, competition for relevance is going to be extremely fierce. And the demand for high-performing businesses and individuals will skyrocket.

Enter the coaches. Coaches are essentially people who offer one-on-one or group capacity-building strategies, ensure accountability, guide, counsel, motivate and encourage and extract high performance from individuals and businesses.

Many businesses are bereft of ideas on how to move forward from the wreck of the pandemic. Executives, entrepreneurs, solopreneurs and all forms of business owners in between are desirous of coaching on how best to navigate these murky waters of the post-pandemic era. This means that proper and efficient coaches will be in high demand from this point forward.

Considering that coaching services exist in all spheres of life, then the industry is built to excel now. Life coaching services, career coaching, business coaching, marriage and relationships coaching, growth coaching, leadership coaching, strategy coaching, finance coaching – there is coaching for everything. And right now, everyone needs a coach especially a career, life and business coach to redirect the focus of their lives and/or business.

Although the market is yet to be fully developed or saturated in East Africa and parts of West Africa, this is the period when it will likely take-off as more and more individuals desire coaching. Coaching is different from consultancy, which is quite popular all over the African continent. Nevertheless, coaching is still not regarded with the same seriousness as the consulting industry.

As a consultant/coach myself, I found that between March to May 2020, business owners I worked with were more interested in coaching first and foremost, before general consultancy services on their businesses. I find that it is important for the drivers of businesses to be equipped with the right mentality and tools to run their businesses before being guided on strategy development. Are you equipped to start a coaching business? Now is the time to start.

Remote Work Technology

For as much as it bears repetition, tech-based services and businesses are thriving even more in this season of uncertainty. Where big-bucks are likely to be made in the tech sector is in the development of technology that will aid remote work. Organisations are coming to terms with the fact that remote work is the new business order and whatever technology can make that method of working more seamless will be expensive.

The meeting and conferencing platforms like Zoom, Google Meet and Microsoft Teams have witnessed a huge spike in user activity since March (2020), and that is set to stay the same. Programmers and SaaS developers that can create disruptive alternatives to the aforementioned remote work tools stand a good chance of penetrating the market in Africa at this time. The likes of Microsoft and Amazon, despite their extensive reach and rich functionality of their remote work tools, retain a foreign feel. A local alternative will be more affordable and will provide easier support for indigenous organisations. The likes of Paystack and Flutterwave did the same to the fintech industry and have enjoyed massive success since then.

And it is super important for freelance service providers to take advantage of the freelance boom across the globe. Preparation is key, and being equipped with the right knowledge and information is a game-changer. Here’s a resource to equip anyone who wishes to position themselves for a career in the freelance industry.

Digital Education

While the lockdown has had a direct impact on all sectors, the education sector is very badly hit, especially at primary and secondary levels where technology is not a norm in public and private schools across the continent. At the tertiary level, the situation is not much different.

More and more people turned to online learning platforms during the lockdown period and such platforms experienced a boom just as meeting and conferencing platforms did. Post-COVID, education is likely to become more digital – accessible at one’s fingertips, in the privacy of one’s bedroom. Again, technology comes into play here but there is an opportunity for African edutech solutions providers to design microlearning platforms for African students using approved curricula of recognised education regulatory bodies so that studying becomes democratised, much like in an open university format but with emphasis on microlearning.

In like manner, any technology that will aid schools in seamlessly transferring their content to digital formats and delivering the same content to students will be popular. Of course, the slim hope is that governments around the continent will invest in digital education for their younger citizens especially. If this is the case, then indigenous solution providers stand a good chance of benefitting.

Julius Omokhunu is a Brand & Marketing Strategist. He helps organisations and their owners accelerate sales goals through a blend of attraction marketing and brand-building. Follow him on Instagram (@juliusomokhunu) or connect with him via emailme@juliusomokhunu.com.