Africa provides you with the endless business and investment opportunities. It has something to offer to almost everyone, looking for investing or trying to establish business. One such propitious opportunity is the leasing business, which has strong growth prospects on the continent. There are countless options if you are looking to get into this line of business. Some of the promising leasing sectors could be agricultural machinery, construction equipment, commercial real estate and vehicles. Your line of business directly depends upon your capital.
Leasing business has proved to be a fruitful venture not only for the business holders, but also for businesses which are dependent upon them. Africa is constantly striding in terms of growth and development in the region and African governments are working hard to promote development in the field of agriculture and infrastructure. This makes the future of this business even more promising.
Agriculture machinery
Most of the African economies are agriculture based. African governments are continuously putting efforts to develop their agriculture sector by improving the prevalent agricultural practices. As Africa’s population continues to increase, the demand for food will increase rapidly. This gives rise to an interesting business opportunity to support African farmers with farm machinery under flexible, short-term arrangements.
One of the biggest obstacles in the development of the agriculture sector and its productivity is poor and obsolete mechanization. The reason behind the prevalent use of conventional manual farming is the poor affordability of automated and mechanized tools. Most of the farmers are poor and thus could not afford the modern agriculture machinery. The majority of the farmers continue to use the traditional manual methods of land cultivation. It subsequently leads to poor and insufficient productivity, hence creating a profound impact on agribusiness.
Fortunately, with the agriculture machinery leasing business, farmers have the option to lease the agricultural machinery. They can get all the agriculture related machinery on rent basis. A single tractor can plough more land in far less time and more efficient manner as compared to a group of laborers using manual tools.
Agriculture machinery business provides a safe sphere to invest in. Though the investments here will be huge, but it promises safe and steady income flow. Now is the right time to invest in this line, so that you could yield fruitful results in the future.
Construction equipment
Africa is getting urbanized with more and more people shifting to the cities in search for good jobs, better sanitation and health facilities. With the expected huge population influx in the African cities, large number of construction projects have started to meet the expected huge housing demand. Angola, Ethiopia, Ghana, Kenya, Lesotho, Mozambique, Nigeria, Tanzania, Uganda and Zambia are some of the countries which are witnessing rapid expansion in the construction sector. It’s pretty obvious that these countries will need the enormous supplies of construction equipment.
There are several construction companies and contractors who can’t afford to own the construction equipment due to the heavy costs involved. Due to the large number of constructions going on as the part of the expansion process, everywhere in Africa, the demand for construction equipment would certainly be increased by the construction contractors in future. Some of the frequently demanded equipment include bulldozers, excavators, dumpers, tankers, stone crushers, concrete mixtures and drilling machines, etc.
These equipment have huge demand round the year and owning these equipment could be fruitful as it definitely offers rewarding and remunerative opportunities.
Real estate
Only the big companies own the commercial space for their office. But the majority of the medium and small companies hire the commercial space on rent. This is a cheaper option as compared to purchasing and owning a space. In the cities like Nairobi, Johannesburg, Lagos, Addis Ababa and Accra, the demand for commercial space is increasing rapidly as these are the most preferred business destinations across Africa.
With African governments’ increasing interest in developing the economic activities, the demand for commercial space will indeed bloom up in the coming years as the result of increasing trade and associations with foreign companies. Owning a commercial space might be an expensive affair, but the money making opportunities it propounds are worth considering. If invested in purchasing commercial space is done, one might certainly get prosperous returns in the future by leasing this space on rent.
The key to success
The leasing business might be an expensive segment to invade in, but it is one such sphere which has a bright and certain future. The developments pertaining to the African economies will boost up the demand of leasing equipment. But nothing comes without hassle, in order to prosper in this business, there are strict measures to be adopted.
One might come across fraud commitments and contracts as well so it is always advisable to maintain transparency by mentioning clear terms and conditions in the contract. The commitments and the expectations from both the parties should be specified. Your equipment are the means of earning livelihood and bread and butter. You can always extend your benevolence towards your equipment by taking regular care of them. Patience is the key to success, nothing comes overnight. If stepped in with patience, caution and profound knowledge and study of the market ecosystem, this domain could provide you fortunes worth millions.
