As project sponsors, borrowers, lenders and investors gathered at the Africa Investment Forum to make deals on investment opportunities, leaders of the continent’s top agribusiness companies shared their thoughts on the future of the industry.
With its vast agricultural potential, Africa’s agribusiness sector is predicted to reach $1-trillion by 2030. Agribusiness will become the “new oil” on the continent, African Investment Forum participants believe, fueling the motor of inclusive growth.
“Agriculture is a key priority for the African Development Bank, through our Feed Africa strategy,” says Jennifer Blanke, the African Development Bank vice-president for agriculture, human and social development. “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.”
Some agribusiness leaders said there is a need to invest $45-billion per year to harness the power of agriculture and move up the value chain to create jobs and wealth. At present, only $7-billion is invested in the sector.
Investments from the private sector, leaders says, 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.
The continent could become a net exporter of agricultural commodities, replacing $110-billion worth of imports, as well as doubling its share of market value for select processed commodities.
“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,” Aliko Dangote, president and CEO of the Dangote Group.
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.
Shamsuna, Nigeria’s Minister of Finance, urges investors and development partners to adapt their policies to accommodate more participants in the agriculture value chain,
“I want us to eat what we grow and consume what we produce,” Shamsuna says.