Apart from the fact that rice is one of the most consumed foods in Africa, Africa has soil suitable for rice production. However, many African countries have failed to see the great economic potentials in investing in rice farming. For instance, billions of dollars are spent annually on the importation of rice into Nigeria.
I want to share the top 5 reasons why investing in African agribusiness is highly profitable.
1. Agricultural Land is Cheap in Africa
The World Bank reports that 50 percent of the rice, fertile and uncultivated Agric land of the world is in usable Sub-Saharan Africa—over 200,000,000 hectares! Perhaps, this is one of the reasons why African is referred to as the future food basket of the world. Apparently, the vast and abundance of fertile land in Africa make the world feel that Africa might be feeding the world in the nearest future.
2. The Demand for Agricultural Produce is High in Africa
Agribusiness remains one of the most lucrative businesses across the globe because the demand for foods and agricultural products will stop. All living humans eat food daily to keep themselves alive. The population of people in Africa is rapidly increasing, and at this rate, the population of Africans is expected to reach 2.2 billion by the year 2050. This means that many mouths will need to be feed in Africa.
Apart from the food industry, manufacturing and processing industries will always have a huge dependence on agriculture for raw materials to remain in production. As the African economy grows, the demand for raw materials will also increase; hence, creating more great opportunities for agriculture on the continent.
3. Increasing Acceptance of Modern and Improved Farm Practices
In the past, African farmers used obsolete and non-conventional farm practices. As a result, the yields were poor and they were unable to optimize their harvests. Furthermore, most of the crops and animals cultivated in Africa didn’t do well and are prone to drought, pests and diseases.
However, scientific and technological advancements in the field of crop and animal production have made it possible for farmers to get great and high-quality yields compared to what they had in the past. African farmers now have improved varieties of crops and animals that grow faster and better at lower costs, and are more resistant to drought, pests and diseases.
4. Agribusiness is Scalable
Agribusiness is a business that one can start with whatever he/she has. You can start small or at any convenient scale and expand as the profit increases.
5. Agriculture Creates Job Opportunities
This is a sector that has potentials to create many jobs and empower a vast number of Africans. Currently, 60 percent of the labour force in Sub-Saharan Africa is employed in the agriculture sector. This justifies that agriculture remains the top labor employer in most African countries.
Additionally, the value chain in this industry, food production, processing and marketing creates many opportunities for entrepreneurship and employment.