Why Grow in Africa
A new World Bank report says Africa has more than half the world’s fertile yet unused land. Africa uses only two percent of its renewable water resources compared to the global average of five percent Africa has the potential to create a trillion dollar food market by 2030 if it can expand their access to more capital, electricity, better technology and irrigated land.
[source: Hugo Ahlenius, UNEP/GRID-Arendal]
In the rush to allocate land for agribusiness, care needs to be taken so that acquisitions do not threaten people’s livelihoods and land purchases or leases are conducted according to ethical and socially responsible standards, including recognizing local users’ rights, holding consultations with local communities, and paying fair market-rate compensation for land acquired.
Africa’s food and beverage markets currently at $313 billion are projected to reach $1 trillion by 2030, bringing more jobs, greater prosperity, less hunger, and significantly more opportunity for African farmers to compete globally.
Africa’s agriculture and agribusinesses are underperforming. Other developing countries such as Brazil, Indonesia, and Thailand now export more food products than all of Sub-Saharan Africa combined. These adverse trends can be reversed through better policies, sustained public-private investment, and strong public-private partnerships backed by open, transparent procedure. Improving Africa’s agriculture and agribusiness sectors means higher incomes and more jobs.
Africa’s Agriculture and Agribusiness Markets Set to Top US$ One Trillion in 2030