Cotton

Yes, the cotton business can be profitable in Africa due to the continent's favorable growing conditions, significant production potential, and growing global demand. You can start setting up business in Africa's top industrial zones for tax exemptions and other benefits, including ready-made infrastructures for cotton processing and logistics. 

The cotton business includes segments such as cotton farming, ginning (processing cotton into lint), textile manufacturing, and garment production. Each segment offers distinct opportunities for investment and growth.

The top countries for cotton investment in Africa include Benin, Ivory Coast, Togo, Kenya, Cameroon, Mali, Burkina Faso and Tanzania. These countries have well-established cotton sectors and are key players in the global cotton market. Additionaly, other countries in Africa like Malawi and Chad are also raising their cotton production and infra, and you could also invest in cotton business in these rising African countries since they offer higher tax exemptions and first mover benefits.
 

Africa’s industrial zones offer benefits such as modern infrastructure, tax incentives, streamlined customs procedures, and access to regional and international markets. These zones help reduce operational costs and enhance business efficiency for cotton investors.

Investing in cotton processing and textile manufacturing may offer higher returns compared to raw cotton production alone. These segments allow for value addition and can capture more value from the cotton supply chain.
 

Profit margins in the cotton business vary by segment. Raw cotton typically has lower margins compared to processed cotton products. Cotton textiles and garments generally offer higher profit margins due to value addition.