Agribusiness

Brief overview:

AgribusinessAgriculture supports the livelihoods of 80 percent of the African population, provides employment for about 60 percent of the economically active population, and for about 70 percent of the poorest people on the continent. Agriculture is vital for the development goals of promoting growth and reducing poverty in Africa (source AFDB Group).

AAIC 2015 will feature Agribusiness break-out stream presentations from Australia and four regions of Africa in the following sub-sectors:

  1. Biotechnology
  2. Produce Beneficiation
  3. Produce Storage
  4. Irrigation Technology
  5. Agro-allied Business

AgribusinessAfrica Agribusiness Facts Sheet:

  • Agricultural land is roughly equally distributed across the various sub-regions of Africa (26% Eastern; 24% Western, 21% Northern; 15% Southern and 14% Central).
  • The top-ten land abundant African countries are Sudan, Nigeria, South Africa, Niger, Algeria, Ethiopia, Tanzania, Mali and Mozambique (FAOSTAT, 2012)
  • The total size of agriculture, including agribusiness, in sub-Saharan Africa was approximately USD 313 billion in 2010, and is expected to reach USD 1 trillion in 2030 (World Bank 2013)
  • The main commodities involved in the agribusiness investments in Africa are rice, palm oil, sugarcane (for sugar and ethanol) and timber
  • In Africa, the sugarcane market has links to electricity markets, given that bagasse, the sugar and ethanol bi-product, is increasingly used as fuel in electricity production
  • The high food prices of 2008 led the G8 to pledge USD 20 billion over the next three years to increased food production and China has pledged USD10 billion in public-private-partnerships in agriculture to help attain the NEPAD-CAADP objectives
  • AgribusinessHigh food prices have spurred foreign large-scale private sector investment in farming, which offers the potential for growth in rental income and out-grower schemes, as well as improved marketing and input/output supply chains
  • South Africa is the only RMC to have adopted genetically modified (GM) crops — mainly soya and cotton, but increasingly maize as well – on a large scale
  • In 2012, AFDB approved a USD 500 million fund-of-funds (a private equity that invests in other private equity funds) which is also focused on the agribusiness sector
  • International Finance Corporation (IFC) of the World Bank Group released about USD 1 billion in annual investments, out of which approximately half (USD 550 million) is invested in Africa (IFC 2013)

Source: Africa Development Bank Group

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