Africa is blessed with so many natural resources. It is the only continent in the world that is self-sustainable with the natural resource at its disposal. One of the key facets of her natural resources is the agricultural wealth of the continent.
Huge advances have been made by the government to encourage investors to put their money into this sector. Modern tools have given investors a means to add more value and create wealth. Are you considering joining the throngs of agro-businessmen? This article lists eight prime avenues for you to consider.
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- Rice Cultivation in Nigeria: Nigeria is Africa’s biggest economy. With a population bordering on two hundred million, you would be sure to make a fortune providing a staple. In comes rice. Seven million tonnes of rice is consumed by Nigerians annually. Currently, despite enhanced local production, there is still a 2.5 million tonnes deficit in meeting demands. With such a huge room for supply, Investors who make the requisite effort to fill this gap are in for a windfall. Getting the requisite input to set up a business shouldn’t be much of a problem.
- Cocoa value addition in Ghana and Ivory Coast: In recent years, these twin nations have been insistent on adding value to their cocoa beans before exporting. The recent declaration by President Nana Addo Dankwa Akuffo-Addo in Switzerland drummed home this determination. This move by both countries has thus created a niche for potential entrepreneurs to thrive. This will go a long way in enhancing agribusiness in Africa. Input suppliers, logistics agents, farmers, machinery service and maintenance personnel, etc. There is a huge opportunity for everyone.
- Industrialization of Cassava in West and East Africa: Cassava is ubiquitous across Africa. You would be hard-pressed to find a country in West or East Africa that doesn’t have it as a staple. For centuries edible derivatives of the tuber have been a mainstay of our dishes. This though is just a tip of the iceberg compared to the enormous potential cassava has on an industrial level. For the past two decades, governments in these regions have touted their vision of taking advantage of this potential especially with regards to Industrial starch. If an investor decides to venture into this, he/she would be certain to get ready cheap supply and the official backing. This comes with the guarantee of huge profits.
- Wheat in Ethiopia: Despite being a high grower of wheat, Ethiopia still has to rely on large imports to augment demand. The potential for wheat supply transcends just Ethiopia and extends across the continent. There is a huge demand for wheat for the production of many products that have become part and parcel of the daily lives of Africans. The Ethiopian government is making great moves to enhance infrastructural and intellectual capacity in the agricultural sector. This and continental agreements like the ACfta imply that any investor in this sector has an infinite platform to make wealth.
- Maize in Tanzania: Despite having the largest planted area of maize in both Southern and Eastern Africa, there is still a huge gulf in supply meeting external demand. This is because approximately 80% of its production comes from small-scale farmers. Maize import into Tanzania only makes up approximately three percent of its import volume. This means with just a little effort, the internal needs can be satiated. The international market needs maize not just for human consumption but the production of animal feed. With the right investment, a major investor in this sector would be able to make Tanzania a key exporter.
- Fish production: Most African nations rely on the importation of fish to meet the needs of their population. Take a country like Nigeria for instance. There is an estimated 600 million dollars worth of imported fish every year. This is a million-dollar market that a local investor can get a huge slice off. With the right inputs and guidance in place, an investor can set up efficient fish production and harvesting system to supply the market. There is also a huge market for the supply of canned fish products that is there to explore.
- Poultry farming: Just as it is with most African nations, the local production of poultry products has been able to supply the huge market that relies on it. The importation of frozen poultry from foreign nations such as Brazil and the U.S.A has thus been a mainstay for years. With phobia arising from pandemics such as the bird flu and the demand for “organic” food, an opening has been created for local producers to step up. Extension workers are readily available to render the needed assistance to potential investors.
- Input Production and supply: Most African nations are reliant on foreign nations for the production and supply of farm inputs. For a continent that has a huge say in the supply of key agro products to the international market, this shouldn’t be the case. As governments on the continent, seek a rapid industrialization drive, the production and supply of farm inputs is a relatively unexplored field that investors can make huge gains. There is a ready market for it and governments will certainly offer apt assistance.
The agricultural potential of the continent is infinite. These eight suggestions are just a tiny fraction of the many viable options that are possible on this beautiful continent. If you seek other options or suggestions on investment, our social media platform offers lots of article to guide you. Do not forget to pass your comments on our posts and engage other subscribers. Kindly do remember to also like and share our posts to create more awareness on these topics.
FAQ for Agribusiness Opportunities Worth Pursuing in Africa
Do African countries give financial incentives to investors?
Yes; most African nations offer a plethora of financial packages to investors. This is dependent on certain sectors or scale of investments. This may be in the form of tax breaks, duty-free imports, or credit with low interests. You can get such info by checking platforms like our website or the Ministry of Trade and Investment in your intended country.
Are there trade deals between African nations?
Yes; there are many trade deals made on the continent. The most glaring ones are those made on a sub-regional level; with the most popular of these being that of the ECOWAS bloc. Currently, the ACfta has been signed by A.U nations. This is going to ease the movement of persons and goods across the continent.
Are my assets secured in Africa?
Assets can never be fully secured in any country. There is always an attached risk. That is why we get insurance for our assets. The political stability and security of African nations have made gargantuan strides over the past few years. Most African nations are now thriving hubs of multi-party democracy.