The World Bank report that Africa as a continent is holding 45% of the world’s uncultivated agricultural land, combined with enough untapped water resources to support farming.
The rise of agribusiness in more industrialized countries is linked to characteristics of competitiveness.
- Innovation, trade agreements, and infrastructure.
- Broadly, agribusiness workers require skills and training to create products of value through businesses that adapt to change.
Economic growth could be improved by developing agriculture through investment across the continent.
Business Growth in Agriculture
Africa has a population of over 920 million people, 60% of whom are aged between 15 and 24 with less than USD $2 a day for subsistence.
As the youth bulge increases, it is predicted that by 2040, Africa will be home to the world’s largest working-age population.
Agribusiness offers potential employment and entrepreneurial opportunities to absorb this surplus labour force.
As it stands, agriculture accounts for under a quarter of African GDP but employs approximately half the labour force. Strengthening agro-processing by adding value to agricultural products through post-harvest operations, storage management, and distribution channels could strengthen its contribution.
Farm to Market
Innovation in technology is creating new methods of accessing information with the capability of developing farming businesses from the grassroots level.
These methods could facilitate drought resilience, crop protection, and yield to benefit all stakeholders in the value chain while creating exciting opportunities for the continent’s youth.
Moreover, post-harvest operations rely on communications and transport infrastructure for fluidity along supply chains.
Multinational stakeholders in the private sector possess the knowledge and capital that could springboard these methods of change.
Signs of development are beginning to show in a number of African countries with an expansion of innovative agricultural finance and associated policy reforms.
- Increased production.
- Yield-enhancing technology.
- A private sector allocating skills and capital.
Transforming commodity chains is projected to open markets worth USD $85 billion per annum by 2025. This will positively impact two of the UN’s Sustainable Development Goals (SDGs) relating to zero hunger and poverty reduction.
Vallis is committed to embracing new opportunities and have every intention of assisting agribusiness through an expansive geographical footprint.