Why Africa is the Next Big Hub for Agribusiness Growth: Top Opportunities in Agriculture Investment and Innovation
Africa’s lucrative agribusiness sector is predicted to reach $1 trillion by 2030, as the African Development Bank reported. The yearly growth demonstrates a clearer picture of how the continent is evolving with the help of innovative cutting-edge African agriculture technologies and agribusiness solutions. In this blog, we will find out why it is a must to expand your agribusiness in Africa.
The world's next breadbasket is growing in vast arable land, population, and overall consumption of food. Governments of all 54 countries are supporting their agriculture sector for a reason - and that is to make Africa a major food producer of the world.
Africa’s Agribusiness History
Africa’s GDP largely depends on agriculture. The reason is that it had 1173 billion hectares of fertile land in 2022. You can read the report here - Click Here
In all these years, Africa’s agribusiness has seen many ups and downs. The external forces and changing eating patterns of people living on the continent have heavily contributed to what we see today - the evolving landscape of the agriculture sector there.
3 Reasons why the Agriculture sector in Africa presents a lucrative opportunity for investors, entrepreneurs, and farmers are as follows,
1. Fertile Land - 37 % of global large-scale agricultural investments occur in Africa, according to the report. Africa has more than 60% of the world’s remaining uncultivated arable land, and receives almost throughout the year fresh water and sunshine. The government is taking its steps forward in making the agricultural industry tall and strong in order not to lose foreign exchange to imports.2. Lucrative Entrepreneurial Opportunity - Economic and agricultural policies, Undefined Infrastructure, Growing Population and Urbanization, and many other factors have contributed over many years to the fact that Africa imports a significant percentage of food.
Some of the best business ideas in African agribusiness markets are as follows,
● Agro Processing
● Organic Farming
● Value-Added Agricultural Products
● Distribution and Trade
The government needs cost-effective agricultural technologies and solutions that could support Africa's agricultural vision of transforming this lucrative sector into a more business-driven, standardized, and sustainable one that can feed the continent and potentially export food.
3. Huge Government Support - The African government collectively is engaging in attractive agricultural projects and various profitable initiatives.
● AGRA (Alliance for a Green Revolution in Africa) The Alliance for a Green Revolution in Africa (AGRA) came into existence in 2006 and is headquartered in Nairobi, Kenya. This African-led organization aimed at transforming agriculture by supporting smallholder farmers through improved seeds, fertilizers, climate resilience, and policy reforms across 11 focus countries, prominent ones being agriculture-rich countries like Nigeria, Ethiopia, and Kenya. AGRA is into creating better policy for small-scale farmers by attracting private investment.
● Africa Agriculture and Trade Investment Fund (AATIF) The Africa Agriculture and Trade Investment Fund (AATIF) is an impressive public-private partnership that is dedicated to uplifting Africa's agricultural potential. Key focus areas include strengthening food security, inviting foreign investments, and protecting the interests of the farmers.
● Africa Vision 2030 - Africa's Vision 2030 for agriculture aims to uplift the African agribusiness sector into a global leader in sustainable and productive farming, so that imports are minimized.
Read about the Why Should You Invest in Kenya's Agribusiness Market?
Moreover, addressing food security, climate change, and economic growth, it is working towards achieving,
- Food Security and Nutrition
- Climate Change Adaptation
- Mitigation
- Technological Innovation
- Digital Transformation
- Economic Growth
- Job Creation for Youngsters in Agribusiness
Feature your agriculture technology and solutions at Africa Agri Expo’s 9th Edition - because this is not just a regular agriculture expo, this is your BUSINESS DEVELOPMENT platform.
CLICK HERE to book your booth now or register as a visitor at the 9th Africa Agri Expo and position your brand at the heart of agricultural transformation.