Digital business is the new oil well. The riches are now in the niches, so keep this in mind when considering profitable digital niches in Africa.

In this article, we’ll highlight the top 5 most profitable niche opportunities to consider. Whether you’re looking to launch a new digital business or expand your existing one in 2023/24, this comprehensive guide reveals all you need to know to make money from the internet.

Cherry on the top, this post is backed by expert data and is designed to supercharge your digital income strategy this year and beyond.

Let’s dive in.

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An Overview: A Look at the Top Lucrative Digital Niches in Africa

If you’ve ever asked yourself any of these questions: 

• What digital business is most profitable in Africa?
• What is the best business to start online or pivot to in 2023/24? 
• Is Africa a good place to start a business?
• What is the fastest business in Africa?
• What online business can I start with $100 in Africa? 

Then you are not alone. 

Lots of entrepreneurs and investors are looking to get in on the ground floor of Africa’s digital transformation, which is creating new opportunities for innovation and growth in a variety of sectors.

According to the latest Ericsson Mobility Report, Africa had around 570 million internet users as of 2022, representing about 43% of the continent’s population. Its number of smartphone connections is forecasted to almost double from 678 million in 2025 to 1.2 billion in 2028 — more than the projected number in North America and Europe combined.

These trends indicate there is a huge demand for digital solutions that can address the challenges and needs of African consumers and businesses. This claim is also validated by Selar, one of Africa’s leading e-commerce platforms for creators.

With more than 1 million users globally, including myself, and over ₦100 million in revenue, Selar has become one of Africa’s most successful and rapidly expanding e-commerce platforms since its launch in 2016. They are slowly becoming the go-to place for Africans to sell and buy digital products. 

So, I had a conversation with Selar, and they shared their data on the top five most profitable digital businesses in Africa.

As you know, my job is to observe marketing trends, research them, and share my findings with you so you can plan and execute effective strategies to launch, grow, and scale your business.

That’s why in the rest of this article, I’ll explain the details of each niche, why it’s lucrative in Africa, challenges to consider, and strategies to succeed in 2023/2024.

Top 5 Lucrative Digital Niches in Africa

1. Sales/Marketing 

The sales and marketing category is for businesses that sell or promote stuff to people, brands, or companies in Africa. Some examples are e-commerce, digital marketing, advertising, branding, and launching.

Why is sales and marketing the most lucrative on this list? 

Because it taps into a continent-wide issue: youth unemployment.

According to the World Bank, youth unemployment in Africa is around 12% in 2023. This means that millions of young people are looking for ways to earn income and support themselves and their families.

Many of them have skills and passions that they want to monetize, but they need to gain knowledge and experience in marketing and sales. This creates a massive demand for coaches, professionals, and individuals who can help them learn how to market and sell their products or services effectively.

What are some challenges associated with this niche? 

Based on my observation, research, and experience working with a wide range of online business owners from medium-sized corporations, coaches, freelancers, digital creators, and marketing enthusiasts, I believe these are the top 4 challenges associated with the sales/marketing niche. 

1. High competition

With the rise of online activity and digital media in Africa, a lot of entrepreneurs and businesses have jumped into the sales/marketing niche.

This means that there’s a lot of competition for customers, attention, and resources. To succeed in this niche, you need to have a clear value proposition, a strong brand identity, and a competitive edge over others. 

2. Invasion of charlatans

Unfortunately, not everyone who claims to be a sales/marketing expert is trustworthy or qualified.

There are many charlatans who prey on the ignorance and desperation of young people who want to learn how to market and sell their products or services.

These charlatans may offer false promises, charge expensive fees, or provide low-quality or unethical products/services. This has caused people to get more skeptical and cautious with whom they spend their money.

To succeed in this niche you MUST show proof of work, social proof, and defend your credibility. 

3. Bargaining power of buyers

The buyers in this niche are often millennials and Gen-Zs with limited income and resources. This is why they may be more price-sensitive and less loyal than other customer groups.

They may also have higher expectations and demands for quality and performance. This means that the sellers in this niche have to deal with the bargaining power of buyers who can easily switch to other alternatives or negotiate for lower prices.

To overcome this challenge and succeed, one needs to build trust, loyalty, and satisfaction among the buyers by providing value-added services, offering guarantees, and creating long-term relationships through a community. 

4. The role of financial institutions

If you ask 10 online business owners what they wished they had access to—which I did, by the way, the top thing they will cite is funding, and the second one would be ease of payment solutions in Africa.

Now more than ever, there is a huge need for African financial institutions to step up and provide access to capital, credit, and financial services that enable online entrepreneurs and businesses to start, grow, and scale their operations to cater to more Africans. 

To overcome this challenge, join us at 5 PM on 29th September 2023 for a conversation on the role of financial institutions in the African creator economy. We need your voice to share your insights, experiences, and suggestions on how to improve access to capital, credit, and financial services for business owners like yourself.

2. Relationships

The relationship category includes businesses that help people improve their romantic relationships. Some examples are relationship advice, matchmaking services, marriage counseling, coaching, and mentoring.

Why are relationships lucrative in Africa? 

One of my most successful clients is a femininity/transformation coach, and I can clearly see why she’s successful. Relationships are a lucrative niche in Africa because not only do they tap into a universal human need for love, connection, and fulfillment.

They also tap into the African belief that one’s identity and well-being depend on how well and quickly they can find a spouse.

Afrobarometer, a research group, backs this up. They surveyed people and found that 76% of Africans say having a good marriage or romantic relationship is EXTREMELY important to them.

However, many Africans face challenges and difficulties in their relationships, such as tribal differences, gender roles, communication barriers, infidelity, domestic violence, and divorce.

These challenges create a demand for businesses that can help people overcome their problems and improve their relationships.

What are some challenges associated with this niche? 

1. The “what would people say” factor

Many Africans are influenced by the opinions and expectations of their families, communities, and society at large when it comes to their romantic choices. This can leave them feeling they’ll be “found out” if they seek relationship advice or help online. 

To overcome this challenge and succeed, providers need to use their brand messaging to clearly highlight the benefits of online relationship support, the confidentiality and privacy of their services, and the success stories of their clients. 

2. Questionable qualifications of providers

The relationship niche is not certification-heavy. This means anyone can claim to be a relationship expert, coach, or counselor without the necessary skills, knowledge, or experience.

This can pose a risk for consumers who may end up receiving poor quality or even harmful advice from unqualified or unethical providers. Therefore to succeed in this niche, you must establish credibility and build trust with your audience.

3. The feminism vs. red pill debate(I call this the microphone debate)

This is a controversial and polarizing topic that has emerged in recent years, especially on the internet. It refers to the clash between two opposing views on gender roles, sexuality, and power dynamics in relationships. 

On one side, some feminists advocate for women’s rights, equality, and empowerment. On the other side, there are red pillers who reject feminism and embrace traditional masculinity, dominance, and intimate strategy. 

The debate has influenced many African men and women who are exposed to these ideas through online platforms, media, and social networks. Some of the effects of this debate include a growing distrust and resentment between men and women, leading to more conflicts, violence, divorce, a decline in marriage rates, and an increase in cohabitation, singlehood, and alternative forms of relationships. 

To succeed in this niche, one must invest in a substantial amount of educational content to get people to unlearn the harmful beliefs and biases fuelled by the feminism vs. red pill debate. 

3. Business

The business category includes businesses that provide solutions or support to other businesses. Some examples are consulting, social media management, implementation services, accounting, and legal services.

Why is the digital business niche lucrative in Africa? 

As the co-founder of a consulting/implementation firm, I am very well aware of the fact that the business niche is highly lucrative in the continent. About 99% of my clients are Africans, which can be attributed to most businesses being stuck in the stagnant growth stage. 

According to a 2022 report by Kippa, a Fintech startup, 80% of businesses under the Micro, Small, and Medium Enterprises (MSME) in Africa fail within the first five years of their existence. So to avoid being part of this statistic, most businesses are seeking out help from other businesses. 

What are some challenges associated with the business niche? 

Everything I have highlighted as a challenge for the sales/marketing niche also applies here. So remember to join the conversation on 29th September at 5 pm, where we have a conversation on how financial institutions can help with these challenges. 

4. Wealth/Finance

This category includes businesses that help people manage their money or access financial opportunities. Some examples are banking, insurance, investing, lending, and crowdfunding.

Why is digital wealth/finance lucrative in Africa? 

There are 3 primal things humans will always invest in until the end of time. Wealth/finance are part of them. This niche is lucrative because people are always looking for ways to save more, make more, and invest more.  

What are some challenges associated with this niche? 

If I were asked to choose, I’d say the wealth/finance niche is the most challenging one to operate in Africa. Mainly because of the lack of proper adequate education, regulation, and supervision. 

Just last month, a huge pyramid scheme was shut down in my home country, The Gambia. Even before it was detected, I was already shouting down the phone, “This is an obvious pyramid scheme.” 

But due to the lack of proper education, regulation, and supervision, many people fell victim to the scam and lost their hard-earned money. It saddened me. 

To thrive in this niche in 2023/24, my brother/my sister, you’ll need to do more than just offer innovative and convenient solutions. You’ll also need to build trust with your potential and existing customers, who may have been traumatized by previous experiences of fraud and scams. 

5. Content Creation

This category includes businesses and individuals who create, write, or distribute content for entertainment or education. Some examples are the distribution and sharing of educational content, ideology content, philosophical content, entertaining content, and value-based content. 

Why is content creation lucrative in Africa? 

This final niche is my favorite. I love to create. But this is not about me. This is about why content creation is lucrative in Africa. 

It’s simple. 

Statistics have shown that Africans face many challenges and distress due to financial and societal pressures. This data is why we now live in a dopamine-induced society more than ever.

Dopamine is a chemical released in the brain that makes you feel good. When people facing challenges and distress log on to their social media accounts, they want to feel good in those minutes and hours they’re logged on. And great content helps them with that.

What are some challenges associated with this niche? 

1. Oversaturation

With the growing demand for content, there are also more and more content creators competing for the attention and revenue of the audience. To succeed in this niche in 2023/24, you need to invest in a robust brand strategy that will make you stand out from the competition. 

2. Inadequate skills training

Another challenge that African content creators face is the lack of adequate skills training and resources to improve their craft. Content creation requires not only creativity but also technical skills such as professional script writing, video editing, graphic design, SEO, marketing, etc.

However, many African companies are not offering these services as one cohesive curriculum. To learn these skills, we mostly sought out international companies. To thrive in this niche in 2023/24, you’ll need to offer an ensuite content creation service that covers all aspects of creating and distributing content. 

Conclusively, if you plan to launch a digital business in Africa or pivot from your current business in 2023/24, this is an opportunity for you to carve your mark and earn your share of the growing African digital economy by leveraging these 5 lucrative niches. 

About the author: This article was written by Yai, a business and launch content strategist, and the creator behind Process Toolbox on Instagram. To learn more about her business, check out Yai’s website or visit her store to get her products.