Energy and Healthcare: two strategic sectors for investors
Spora Vest • October 2, 2025
Investors looking for impactful opportunities in Africa focus on sectors that combine high growth potential with strong societal impact. Among these, energy and healthcare stand out as strategic areas where investment can drive both profit and progress.
Why Energy?
With population growth and industrialization, the need for reliable electricity is skyrocketing. According to the United Nations and other institutions, Africa’s population is expected to double, reaching 2 billion people. This highlights the urgent need to equip the continent with adequate infrastructure to support its growing population and future challenges.
Africa still faces significant challenges in access to electricity, with around 600 million people lacking access. The lack of electricity severely restricts human and economic development. It hinders schools and healthcare services, limits small businesses, and reduces safety and quality of life.
People become dependent on expensive, polluting energy sources, reinforcing poverty and rural–urban inequality. Providing electricity, even through small-scale solar systems, immediately improves education, healthcare, local economies, and security.
Many regions across the continent enjoy more than 320 days of sunshine each year.
The average solar potential exceeds 2,000 kWh/m² annually — among the highest in the world, and well above that of Europe. Countries such as Niger, Chad, Mali, Egypt, Morocco, and South Africa benefit from ideal solar radiation for developing large-scale photovoltaic or solar thermal power plants.
As a result, the continent has the potential to generate several times more energy than it currently consumes, solely from solar power. Solar, wind, and hydro energy offer sustainable solutions that attract both local and international investors. Access to reliable energy supports businesses, schools, hospitals, and homes, fueling overall economic growth.
Why Healthcare?
• High societal impact: Investing in healthcare directly improves quality of life and workforce productivity.
• Growing market: Demand for medical facilities, pharmaceuticals, and health technology continues to rise in urban and rural areas.
• Innovation opportunities: Telemedicine, mobile health solutions, and affordable diagnostics are transforming access to care, creating profitable niches for investors.
Benefits of investing in these sectors:
• Long-term growth: Both energy and healthcare offer sustainable, scalable opportunities.
• Community impact: Investments address urgent needs, improving lives while generating returns.
• Government support: Many West African countries offer incentives, tax breaks, and partnerships to attract investment in these sectors.
Risks to consider:
• Regulatory challenges: Navigating policies and permits can be complex.
• Infrastructure limitations: Energy and healthcare projects may face logistical or supply chain hurdles.
• Capital intensity: Both sectors often require substantial upfront investment before seeing returns.
Conclusion
Energy and healthcare are not just essential services—they are engines of development. For investors, these sectors provide a unique combination of growth, social impact, and long-term opportunity. By carefully assessing risks and leveraging local knowledge, investors can play a pivotal role in shaping a healthier, more connected, and prosperous Africa.
Each year, Africans living outside the continent send billions of dollars back home. These funds are primarily used to cover essential needs such as healthcare, education, and schooling. While these remittances are vital for households, they also represent a tremendous opportunity to stimulate broader economic growth in Africa.
Small and medium enterprises (SMEs) are the backbone of many economies, but securing investment can be a challenge. Investors are looking for businesses that are not only profitable but also well-structured and scalable. Structuring your SME properly can make all the difference in attracting the right partners and funding.