Reaping Africa’s $1 Trillion Agribusiness and Food Opportunity
Africa holds immense potential to harness agricultural innovation and investment to feed its growing population, drive economic growth, and supply global food markets. Current statistics paint a picture of both challenge and opportunity across African food systems:
- Food and agribusiness in Africa is projected to reach $1 trillion by 2030 (compared to $313 billion in 2010), with the fastest growth in livestock, dairy, fisheries, grains, and horticulture. (AfDB)
- Over 60% of the world’s unused arable land is in Africa, yet current yields are only able to meet 56% of current consumption demand in sub-Saharan Africa (SSA). (AGRA)
- SSA has 23% of children globally but accounts for half of child stunting cases worldwide, underscoring the need for nutrition-focused food system transformation. (UNICEF)
- Smallholder farmers manage over 80% of Africa’s farms, but face constraints from low productivity, lack of finance, market access, infrastructure, weather data, and extension services. (AGRA)
- Africa’s food import bill was $43 billion in 2019 but could grow to over $110 billion by 2025 without transformation of regional food systems. (AGRA)
Tapping Technology and Innovation
Powerful tailwinds are accelerating change across African agri-food systems:
- Digital tools provide smallholders precision farming advice, connect producers to lenders, track supply chains, and link farmers to buyers – reaching millions via mobile phones.
- Novel renewable energy applications support productive on and off-grid cold storage, irrigation, and processing – reducing waste.
- Seed system innovations boost climate resilience and nutrition (e.g. Orange Maize, N-Plex fertilizers).
- Youth ventures applying e-commerce, digitally-enabled distribution platforms, and new business models revitalize city-country links.
Policy Reforms to Unlock Private Investment
Compelling demographics underpin robust market outlooks, but enabling policy environments remain imperative to unlock inclusive agricultural transformation and agribusiness development at scale across Africa, including:
- Improving infrastructure – roads, storage facilities, distribution logistics
- Facilitating regional trade and harmonization
- Expanding agricultural finance products for farmers and agripreneurs with risk sharing
- Strengthening agricultural R&D, technology transfer, and extension systems
- Promoting inclusive, nutrition-focused food value chains with equitable links to smallholders
- Developing human capital via education, skills training, and entrepreneurship ecosystems
Private sector participants have much to contribute via sustainable, win-win partnerships, including:
- Tailored small farm contractual arrangements
- Inclusive last-mile distribution networks
- Localized equipment sharing platforms
- Farm data analytics for lending decisions
- Sourcing traceability using blockchain
- Farmerand youth livelihood programs
Africa has many breadbasket areas well positioned to supply regional markets based on comparative advantages. For example:
- Grains: Tanzania, Ethiopia, Mozambique, Zambia
- Horticulture: Cote d’Ivoire, Kenya, Morocco, Tunisia
- Fisheries: Uganda, Egypt, Ghana, Gambia
- Livestock: Botswana, South Africa, Kenya, Namibia, Ethiopia
- Cocoa: Cote d’Ivoire, Ghana
- Coffee: Ethiopia, Rwanda
Realizing $1 Trillion Potential
Inclusion will be central to ensure agricultural progress lifts all boats – empowering women, improving rural livelihoods, expanding agripreneur opportunities, addressing malnutrition, and bolstering resilience to climate change.
Strong projected GDP growth and fast-rising food demand across Africa mixed with ample untapped agricultural potential offer an opportunity for governments, companies, farmers groups, and entrepreneurs to collaborate on innovative solutions that catalyze broad-based rural development centered on sustainable agri-food system transformation.
Capturing just a fraction of the projected $1 trillion opportunity can positively shape Africa’s future while contributing to improved global food security. The time for action is now.