Five High-Growth Sectors in Sub-Saharan Africa Beyond Mining
Mining gets the headlines, but real value is emerging elsewhere. In DRC, Uganda and Kenya, agribusiness, fintech, renewable energy, digital services and logistics are delivering returns that can eclipse extractives. FG Capital Advisors breaks down why these five sectors deserve your attention.
1. Agribusiness & Agroprocessing
Africa’s arable land is a goldmine for value-added agriculture. In the DRC, palm-oil mills and cassava flour plants are scaling up to serve domestic and regional markets. Uganda’s coffee exports topped 4 million 60-kg bags in 2023, yet downstream roasting and packaging remain undercapitalized. Kenya leads with horticulture—flowers and fresh produce generate over USD 1.5 billion annually. Local processing creates jobs, boosts margins and cuts reliance on raw-commodity prices.
2. Fintech & Digital Finance
Mobile-first economies are rewriting finance rules. Kenya’s M-Pesa now handles more value than its banking system, with over 40 million active wallets. Uganda’s digital lending apps disburse millions weekly to SMEs that lack collateral. In the DRC, nascent mobile-money ventures are tapping a 100-million-strong unbanked population. Fintech firms earn fees on transactions, data analytics and credit scoring—often at 20–30% IRRs in early-stage rounds.
3. Renewable Energy Projects
Off-grid and mini-grid solar have taken off. Uganda’s rural solar home-system market grew by 40% in 2024, while Kenya’s pay-as-you-go firms attract both equity and debt finance. In DRC, hydro-mini-grids address chronic blackouts, unlocking industrial and service-sector growth. Investors target 15–18% project-level IRRs by blending concessional debt, donor grants and commercial off-takers under long-term power-purchase agreements.
4. ICT & Digital Services
Software and telecom demand is surging. Kenya’s tech hubs in Nairobi and Mombasa host startups in e-commerce, e-health and agritech. Uganda’s fibre-to-the-home rollout is accelerating cloud adoption. In the DRC, under-served urban centres see explosive growth in last-mile internet and B2B platforms. With SaaS metrics and recurring-revenue models, investors can back scale-ups at 5–7x revenue multiples.
5. Logistics & Supply-Chain Finance
Moving goods remains a bottleneck—and an opportunity. Uganda’s Standard Gauge Railway is slashing Kampala-Mombasa transit times, while DRC truck-fleet upgrades cut Kinshasa to Pointe-Noire delivery by weeks. In Kenya, port-finance platforms use container receipts as collateral for working-capital loans. Yields on short-term, asset-backed facilities range from 8–12%, with default rates under 0.5% thanks to perfected security and self-liquidating cash flows.
How FG Capital Advisors Can Help
These sectors are ripe—but complex. We provide market entry advisory, capital-stack structuring and project-finance solutions tailored to each jurisdiction. Whether you’re eyeing a coffee-processing plant in Uganda or a solar mini-grid in DRC, our local networks and cross-border expertise get deals done.
Disclaimers & Important Considerations
FG Capital Advisors offers advisory and arrangement services only. Sector returns, project viability and regulatory regimes vary—past performance is no guarantee of future results. Investors should conduct independent due diligence and consult legal, tax and financial experts before committing capital.
