Stakeholders in Africa’s agricultural sector, particularly top players in the agribusiness sub sector, have projected that with adequate policy support and more conducive investment climate for enterprises, the continent’s agribusiness sector could reach US$1 trillion by 2030.
According to them, with adequate government policy support, the agribusiness will become the ‘new oil” and engine of growth on the continent.
These were some of the fallouts of the participants’ discussions at the just concluded African Investment Forum in Johannesburg, South Africa.
In her opening remarks during one of the sessions with the title ‘Agribusiness: investment conversation with industry leaders’, the African Development Bank (AfDB) Vice President for Agriculture, Human and Social Development, Jennifer Blanke, said that “agriculture is a key priority for the African Development Bank, through our Feed Africa strategy.
“Understand that by transforming Africa’s agriculture sector it will become the engine that drives Africa’s economic transformation through increased income, better jobs higher on the value chain, improved nutrition, and so on”, she added.
Some agribusiness leaders said that there was the need to invest US$45 billion annually in order to harness the opportunities in agriculture and enhance the value chain to create jobs and wealth.
Currently, only US$7 billion is invested in the sector. Investments from the private sector, leaders said, will create the adequate environment and enhance the emergence of locally owned agro-processing industries, capable of creating jobs and increasing incomes in rural Africa.
According to the participants and industry leaders, the continent could become a net exporter of agricultural commodities, replacing US$110 billion worth of imports, as well as doubling its share of market value for select processed commodities.
Speaking during the full capacity session which features representatives from multilateral financial institutions, pension funds, sovereign wealth funds, government officials and private investors, the President of Dangote Group, Aliko Dangote, harped on the need for more research and capacity building for youths in order to optimize the potential of agriculture for Africa’s benefits.
He said: “We need to do the research to produce the right solutions to the issues we might face along the value chain. Youth are particularly involved in this aspect as they know how to develop tools addressing issues such as water management and release.”
He explained that agribusiness can also promote industrialisation and urban employment, break the ‘productivity gap’ of development, and improve the quality of life for all Africans. Attendees said Africa’s agricultural potential needs to be unlocked.
In her remarks at the three-day event, Nigeria’s Minister of Finance, Zainab Ahmed, urged investors and development partners to adapt their policies to accommodate more participants in the agriculture value chain,
In closing the session, Manager of Agribusiness Development at the AfDB, Edward Mabaya, highlighted the vast investment opportunities in Africa’s agribusiness including seed, fertilizer, mechanization, processing and storage
