Investments Worth a Look in 2024

Another year, another opportunity to make a better life. Part of making a better life is investing. This year presents another opportunity to invest and improve the quality of your life.

However, where should you invest this year? What industries and businesses are likely to have good returns in the year? 

In this article, we discuss some of the investment opportunities worth a look at in 2024.

Real Estate Market

Real estate as an investment is worth a look in 2024 since it was the third-largest contributor to GDP in 2023, and the industry registered growth throughout the year. This is even after the shilling was losing value, proving to be proof against inflation.

A real estate investment is an investment in land and in buildings that are on that land. The buildings can be used as residential spaces or commercial spaces. Furthermore, a real estate investment can include the crops, minerals, or water on a piece of land.

Investment in this industry involves buying, selling, and renting properties.

A real estate investment is relatively simple compared to other investments. Although it will depend on how you set up your investment, many real estate investments qualify as passive investments. The investment will not require too much of your time to manage them.

If, for instance, you own rental properties, they will not need you there every day. You only check up on the property from time to time.

Secondly, a real estate investment can be leveraged. You can use your real estate property as collateral for a credit facility. This gives you even more means to invest further.

In addition, a real estate investment holds value well over a long period. Such investments are long-term investments. Furthermore, land tends to increase in value, hence holding a piece of real estate over a long time is more likely to be profitable.

As you think about investments in 2024, real estate is worth a look. In real estate, you can invest according to your means. There are property companies that have favorable entry-level packages that you can start taking advantage of.

Agribusiness

Agriculture accounts for 25% of Kenya’s GDP and 65% of Kenya’s exports. Hence, agriculture is a key economic sector in Kenya.

Agribusiness, therefore, is the economic activity that revolves around farm products. These include crop production, crop processing, transportation, and distribution.

Agribusiness is a worthy investment to consider because of the potential it holds. With the sector being a key pillar of our economy, the opportunities to get into Agribusiness are endless. The growth potential is also there.

Secondly, Kenya’s population is growing. With a growing population, the demand for food also increases. Plugging yourself into the food production and supply ecosystem will likely be a good investment decision.

The government also supports the sector largely. The current government regime has since subsidized seeds and fertilizers for farmers to increase food production. This is an excellent opportunity to take advantage of. 

Secondly, the current government is pro-climate change, being at the forefront of the climate change bandwagon. This benefits farmers as the government is keen to ensure that farmers thrive because they help with food security, a driving factor of the climate change campaign.

As highlighted initially, agricultural produce makes up 65% of Kenya’s exports hence, the export opportunities are there in the industry. Furthermore, there are even more opportunities for the value addition of agricultural produce.

The agricultural value chain is extensive; you can plug in where you spot a gap and fill it. This industry is worth a look if you are considering investing in 2024.

Renewable Energy

Eighty percent of Kenya’s electricity is renewable energy. There is motivation to get this to 100 percent. Kenya is championing the climate change agenda and one of the efforts to achieve clean energy is using more and more renewable energy.

This impetus creates a gap in the renewable energy industry that you can take advantage of. 

Kenya Power and Lighting Company (KPLC) is also working with Independent Power Producers (IPPs) and buying power from them to fill in where the current grid falls short. This transaction opens it up for investors who can produce solar or wind energy and supply KPLC.

On the other hand, you can choose to invest in products that produce renewable energy. Selling solar is one such investment. You can also invest in companies that build with mills or that supply windmill-making products. 

Furthermore, you can invest in companies that integrate their products with solars so that they get charged during the day and used after they charge.

There are numerous opportunities to invest in the renewable energy space. If you are considering investing, this is an industry worth a look.

Crypto Currencies

Kenya holds Bitcoin worth $1.5 billion, equating to 2.3% of Kenya’s GDP. Moreover, over 6 million Kenyans own cryptocurrencies.

Cryptocurrencies appeal to Kenyans as they are considered a hedge against inflation. Hence, they safeguard savings and investments. Additionally, they are used in international trade. 

The perceived utility of cryptocurrencies provides opportunities to invest in them. Bitcoin has been on the rise for the last 6 months, increasing its value by 56%, and now stands above Ksh 6 million. 

The Bitcoin system has a cap on the number of Bitcoins on the market, whereas our currency does not have a cap. The currency that the Kenyan shilling is pegged on has been on a printing spree, significantly contributing to money losing its buying power worldwide.

Secondly, Bitcoin allows for transactional speed as you can send money across borders without regulatory bureaucracy that tends to slow things down. However, it is necessary to note that bypassing regulatory red tape also makes cryptocurrency the go-to currency for criminals and scammers.

Furthermore, in the past, cryptocurrencies have shown a trend of gaining value in a bull run and then crushing, creating some of the most catastrophic bear markets. There are stories of people who have lost their entire life savings in cryptocurrencies.

Nonetheless, if you want to invest in 2024, you can consider investing in crypto. However, you must educate yourself on the subject to have a good understanding of investing wisely. 

Stock Market

In 2023 NSE trading Umeme share price rose by 115%. Kapchorua tea rose 89%, while Kenya Orchads rose 87%.

These performances in the Nairobi Stock Exchange show the investment opportunities found in the stock market. 

Investing in stocks has been a traditional investment avenue and has proven to work as long as one understands the market and is patient enough. 

Nonetheless, stocks are a good investment since they are easy investments to enter and exit. Investing in stocks allows you to be liquid, allowing you to be swift with your money when needed.

Secondly, you are presented with various companies in different industries to invest in. The variety ensures you find an investment that suits your values and risk tolerance.

Additionally, some companies pay dividends. If you want to earn dividends, you can invest in companies that pay regular dividends.

Stock investing is a good opportunity to grow your money. It’s an opportunity worth your attention in 2024.

Technology and Innovation

Nairobi has been nicknamed Silicon Savannah because of the innovative technologies that have risen from Kenya. 

The Kenyan Innovation and Technology ecosystem is growing and poses great investment opportunities.

One way to plug into the ecosystem is by being an angel investor. There are several incubation and accelerator hubs in the country, and they are always looking for investors to help fund innovations and technologies being invented or applied. You can consider this as a way to invest.

You can also be part of the innovation and technology revolution by innovating. Find a problem you are interested in solving, then innovate a solution for the problem using technology.

Investing in innovation and technology enhances efficiency and productivity, addresses societal problems, and empowers people.

The innovation and technology ecosystem is vast; hence, there are many opportunities to participate by investing in 2024.

Wrapping Up

We have highlighted just a few investments you can consider in 2024. Every investment will require you to do your due diligence to ascertain its legitimacy. Also, it is wise to invest in something that you understand well, this reduces your risk of losing your money. Furthermore, remember investment is a risk and reward game. Understand your risk tolerance and invest in the way it suits you.