Passive income in Africa – The complete guide 2024

Passive income in Africa - The complete guide 2024

Passive income in Africa – The complete guide 2024

What is a passive income?

Passive income is money you can earn from other sources other than your regular employment or activity. Unlike a day job, you do not have to be actively involved to earn a passive income in Africa. For example it can be coming from rental properties, from a business that you don’t run yourself, from savings yielding interests, sponsored content on a blog, affiliate marketing, paid surveys, etc. It is often combined with another source of income, such as regular employment or a side job. 

Here, we will go over 5 passive income business opportunities in Africa.

How to earn a passive income in Africa?

Although it is commonly believed that passive income is easy to acquire, even this requires work. The setup phase necessitates work, and continuing activities are required to sustain and expand the revenue stream. These duties may include periodic maintenance, monitoring, reinvestment, or other work. 

Before you can begin monetising, each sort of passive revenue demands a different amount of initial work. However, not all types demand particular skills or a significant amount of time every day.

What are the steps to follow to make money in Africa?

  • Find the ideal opportunity: According to the time you can spend on it, the resources you have at your disposal, choose the opportunity that works best for you. Make some research to learn how others have made it work. 
  • Learn how to make it work: It is very important to learn about the opportunity that you chose. Having all the keys before starting is the best way to make it work for you. You can try to talk with other people that chose the same topic as you.
  • Expand and grow your business: At this stage you may need to invest money and complete different tasks repeatedly for some time before seeing money come in. Then, you will be able to make the process more hands-off.
  • Reinvest: You can grow your business by adding employees to cut down on your personal time expenditures or by making more money from your current assets. You might also redistribute your money by purchasing actual passive income-producing assets elsewhere, such as stocks, real estate, or companies. This is a good idea if your business is profitable but requires a lot of work.

5 easy forms of passive income

1. Paid surveys

You can make money by taking online surveys with SagaPoll, the African survey app. Download the app on Google Play and register by providing personal information such as your name, email address and date of birth. It’s free! 

You will receive notifications for surveys that match your profile. You will receive points for participating in this. The points you will earn will depend on the length and complexity of the surveys. Once you have 5,000 points, you can redeem them for cash or mobile data/call credits. Payment is usually made within 7 business days of providing your banking information.

2. Peer-to-peer lending

Peer-to-peer (P2P) lending, also known as debt crowdfunding, connects lenders with borrowers, bypassing traditional banks for better rates and quicker decisions. As a lender, you have the opportunity to earn through interest payments. However, unsecured loans carry default risk. You can reduce that risk by: 

  • Distributing investments among several loans 
  • Using borrower data to make informed choices. 

P2P lending makes funding more accessible, especially for those with lower credit scores who might struggle to get traditional loans. The flexible criteria P2P platforms open up opportunities for a broader range of borrowers. The reduced interest rates are one of the main advantages. Furthermore, investors have a choice in who they lend to on certain P2P platforms. This implies that lenders might give a personal touch to their investments by assisting companies or persons they support. But, P2P lending requires close attention to investment monitoring and rigorous borrower evaluation. Income can be increased by reinvesting interest, although default risks might rise during recessions.

3. Dividends-paying stocks

You can buy stocks from companies that pay out dividends, a sum of money paid regularly by a company to its shareholders out of its profits or reserves. Since dividends are paid out per share of stock, you need to own a sizable amount of shares before you can start realising profits. Due to the fact that it only involves financial commitment, this is one of the most passive ways to make money in Africa. Choosing the correct stocks is the hardest part. Also, keep in mind that stocks can be very volatile and so move down consequently in a short period of time (this was the case during the COVID-19 pandemic, for example). Again, it is crucial to conduct research before deciding where and how to invest. It can be very different from one person to another, according to where you are living and your financial resources. 

4. Affiliate marketing

One way to make a passive income as an African is through advertising the products or services of other businesses through affiliate marketing. Affiliates must work to increase traffic since they are paid a fee for every sale that is made via their referral links. By adding links to third-party products on their websites or social media accounts, bloggers, social media influencers, and website owners can promote these products. 

Sites like TikTok and Instagram are well-liked for product promotion and follower growth. Since commissions usually vary from 3 to 7 percent, a big amount of traffic is necessary to generate a significant amount of revenue. However, a large following or a lucrative niche can result in considerable income. 

Even though affiliate marketing is thought of as a passive income idea in Africa, it demands attracting readers who will click on the links and make purchases. It might take a while and be difficult for new affiliates to develop a following and create content because there is a chance that followers will switch to other influencers or trends.

5. Renting out equipment or property (e.g., cameras, drones, parking spaces)

Do you possess any underutilised assets, such as equipment, additional space, or parking? Renting them out can be a profitable opportunity. Whether it’s party supplies, storage space, or a parking spot near a performance venue, these assets can generate passive income. 

High-demand locations, especially those close to workplaces or event spaces, can be particularly lucrative. For instance, renting out a parking space in a commuter-heavy area could provide a reliable source of income. While the risks are generally low, ensure you comply with local regulations and include liability disclaimers if necessary. 

Beyond parking, you can also earn additional revenue by renting out cars, audio equipment, furnishings, and more. Each type of rental has its own set of challenges and rewards. Some may require a substantial initial investment, while others might only need your time and expertise. Identify what suits you best and dive into the opportunity.

The five passive income opportunities in Africa mentioned in the article are just a few examples. There are countless other opportunities out there waiting to be explored. To discover more ways to earn passive income, consider researching online or speaking with individuals who have successfully created passive income streams. They can provide valuable insights and ideas that align with your interests, skills, and resources. Whether it’s paid surveys with SagaPoll, peer-to-peer lending, participating in affiliate marketing, or renting out equipment and property, exploring diverse avenues can lead to discovering the right fit for you. Embrace the journey of exploration and learning to uncover opportunities to earn a passive income in Africa.


The information provided in this article about passive income opportunities in Africa is for general informational purposes only. While we strive to provide accurate and up-to-date information, SagaPoll makes no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. Any reliance you place on such information is therefore strictly at your own risk. SagaPoll cannot be held accountable for any errors, omissions, or any outcomes related to the application of the ideas and strategies discussed in this article. Always conduct your own research and consult with a professional advisor before making any financial decisions.

FAQ – Passive Income in Africa

Is there a source of passive predilection income?

This will depend on the amount of money you can invest, your aptitude and level of interest in the field and the amount of time you can invest. Choosing a topic with little competitors is the best way to succeed in making a passive income. It is also important for you to choose a subject in which you are good and interested.That way, it will be easier to stay motivated especially in the early days.

Is it possible to make passive income with no money?

It is possible, however you will have to invest more of your time until you build some funds. Also, in that case it is even more important to choose an area where you are an expert. You can also focus on an opportunity that demands time and work such as creating online courses or becoming an influencer for example. In this manner, you can use your time to make up for your lack of capital until you have enough to increase your opportunities.

Is it necessary to have more than one income stream?

The number of revenue streams you have depends on your financial situation and aspirations. However, starting with a few of them is a good idea. But be careful not to have too many and risk reducing your time and attention on those you already have. Try to find the right balance to start small and gradually your business by choosing the right opportunities for you.