Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. Passive income is widely used as a way of getting out of poverty.
The rise of the internet, and of technology has created new business opportunities, and innovative ways to earn passive income even in underdeveloped countries in Africa.
1. Self publishes an ebook:
Amanda Hockings, an American author of paranormal fiction sold a million copies of her self published ebooks in the space of a year. On her blog, she detailed how she went from earning barely minimum wages, and little formal education to selling millions of books over the course of a year. She published nine books from March 2010 to January 2011.
Printing traditional books are very costly and also distribution is a major problem. With the popularity of the Internet and mobile phones, there will be a good potential for an ebook in countries in Africa.
Writing a book will take a lot of your time and a fair amount of skill. Once it is done, however, it can earn you income.
Getting started: Intermediate
Funds required: Low
The effort to maintain income stream: Low
2. Develop an app:
Apps are another way of making passive income. You design your app and then upload it to Playstore or Apple Appstore.
How you are remunerated will depend on your revenue model. Some apps you pay to download, some apps free and use a freemium model, and some free apps simply display Ads to make money.
Making an app will require quite a lot of coding skills and time, but you can learn them from Youtube nowadays. You will also have to pay a one time $25 fee to have your app listed on google play store or $99 a year to have it available on the Appstore.
Making a successful app is not easy. There are about 2.4 million apps on the store and in order to differentiate yourself with the applications, you will need to come up with something truly original. However, there are still plenty of opportunities for localized apps in Africa
Getting started: High. Good coding skills are required.
Funds required: low to Intermediate
The effort to maintain income stream: High
3. Automatic Fare Collection Operator for Buses
Shortage of cash notes, fraud, and fake money have been a problem for bus companies in under developing countries. However, nobody wants to invest or to finance any fare collection system for old buses.
By following a proven financial model based on charging a minimum deposit on each passenger stored-value card, it will be a big money-making business with minimum or no investment.
Operating as an Automatic fare collection operator independent from the bus company, you can have a positive cash flow of investment over USD 1 million, and earn about USD 1 million every year for a population of a million passengers.
Getting started: Intermediate
Funds required: Intermediate
The effort to maintain income stream: Intermediate