Africa represents significant economic growth potential. Investing in agriculture in Africa, after the energy sector, attracts the most attention from investors, who predict glorious days.
Developing agriculture in Africa: from trials to mixed results
Under the leadership of Madagascar, the whole of Africa, through government officials, have set up a study tour aimed at setting up instruments whose ultimate goal is to reduce poverty, while strengthening security. food. The objective being also to attract investors, the observation of Asian trends suggested that parks, agricultural areas, corridors and agropoles were tools for developing agro-industry and enhancing agricultural production. primary.
However, corridors and agropolises have not performed well in Africa, notably accused of excluding small producers by promoting land grabbing while undermining food security. These are things to take into account when thinking about investing in agriculture in Africa. The context around the sector has its degree of complexity, but nevertheless remains a boon for anyone with flair and wanting to get started.
African agricultural potential: an immense wealth that must be exploited
Africa’s agricultural potential, especially in terms of agricultural products and commodities that can be produced and marketed locally and internationally is immense. Besides that, the diversified nature of this potential does not allow us to envisage a general solution to the question of agricultural development on the continent as a whole. It is therefore important to consider, in your quest for agricultural investment in Africa, the characteristic conditions of each agro-ecological zone, while taking into account the socio-economic situation of rural households in African countries.
There is thus, in Africa, a large variety of agro-ecological zones. We go from areas with sparse dry and arid vegetation watered once a year, to areas marked by two rainy seasons, the rain forests. This is both an asset and a challenge for anyone wishing to invest in agricultural development in Africa.
Investing in agriculture in Africa: countries with massive programs
African governments are now open to private investment to boost agricultural development. Programs such as agropoles already exist or are under development in some twenty African countries (2017), supported by international organizations such as the AfDB or UNIDO. These countries where local policies, in agreement with international organizations, have initiated agricultural development programs, could represent good breeding grounds for investors wishing to get into agriculture. We find there;
2. Burkina Faso
Agriculture in Africa: “massive” forecast growth
FAO and OECD forecasts place the growth of agricultural production, in sub-Saharan Africa in particular, at 30% for crop production, and 25% for meat production, by 2027 (report “Agricultural Outlook 2018-2027); which is strong growth, but which nevertheless remains insufficient to guarantee food security in the area. The other crops with significant upward forecasts are cotton (+ 33%), sugar cane (+ 18%), and fish (12%).
The efforts of local government institutions to stimulate agricultural development in Africa are evident. For example, a bank dedicated to the agricultural sector has been set up in Burkina Faso, a godsend for a country where 80% of the population lives in the rural world and is engaged in livestock and agriculture. Benefiting from upstream only 15% of traditional bank financing, such an initiative is suitable for boosting the agricultural sector. The capital of this bank is more than 14 billion CFA Francs.
We realize that a real dynamic is underway to develop agriculture in Africa, in particular through public and private investment. What else do you have to do? Find your niche and get started body and soul!