Africa’s growing population presents potential for investors, we’ve highlighted 3 lucrative sectors to watch out for in 2024.
Investing in African agri-businesses has become increasingly attractive as the continent experiences a transformative wave in its agricultural sector. With a growing population, untapped arable land, and increasing demand for sustainable and locally sourced products, Africa presents a myriad of opportunities for investors seeking to make a positive impact while securing promising returns.
Over here at Sharelovv International , our Mission is to Empower Africa by forging and building strong connections that will unleash untapped potential, providing new solutions for a changing continent.
In this article, we will explore three agri-businesses poised for significant growth in 2024, supported by practical case studies and figures.
1. Precision Agriculture Technologies
Precision agriculture is gaining ground in Africa, with innovative technologies reshaping farming practices. Case in point, Kenya’s UjuziKilimo , a pioneering precision agriculture company, utilizes data analytics and Internet of Things (IoT) sensors to provide farmers with real-time information about soil health, weather conditions, and crop-specific recommendations. By leveraging precision agriculture, UjuziKilimo has helped smallholder farmers increase their crop yields by up to 30%, contributing to food security and income growth.
Figures from the African Development Bank estimate that the adoption of precision agriculture technologies could generate an additional $2.3 billion annually in the African agri-food sector. Investors looking to capitalize on this trend can explore opportunities in companies developing and implementing precision agriculture solutions across the continent.
2. Agro-processing and Value Addition
In Nigeria, the agro-processing sector is experiencing significant growth, driven by companies like Flour Mills of Nigeria Plc . This conglomerate has invested in modern processing facilities with a high focus on sustainable practices for staple foods like rice, wheat, and cassava. Through value addition, they have not only increased their revenue but have also positively impacted local farmers by providing a ready market for their produce.
Figures from the World Bank indicate that agro-processing can contribute to poverty reduction by creating jobs and enhancing income opportunities. As of 2023, the agro-processing market in Africa is valued at approximately $267 billion, with considerable room for expansion. Investors keen on agro-processing ventures can explore partnerships with companies committed to innovation and sustainability.
3. Sustainable Aquaculture
In Egypt, a practical example of sustainable aquaculture success is the Arab African International Bank-supported tilapia farm. By adopting recirculating aquaculture systems (RAS), the farm has not only increased fish production but has also minimized water usage and environmental impact. This demonstrates the potential for sustainable aquaculture to thrive in Africa, contributing to both economic growth and environmental stewardship.
SImilarly in Nigeria, Afrifruits ltd, a leading company in agribusiness consultancy and project management is interlacing both sustainable aquaculture and value addition, generating and tilapia farms in advanced systems which control oxygen application and cleaning of water using bio-filters, once fertile, these fish are processed in fillets available to local supermarkets across Abuja.
Figures from the Food and Agriculture Organization (FAO) indicate that Africa’s aquaculture production has been steadily growing, reaching 2.3 million tons in 2022. With the demand for seafood projected to rise, investors exploring sustainable aquaculture ventures can tap into this lucrative market while promoting responsible resource management.
The case studies and figures presented underscore the tangible opportunities within precision agriculture, agro-processing, and sustainable aquaculture in Africa. These sectors not only align with the continents development goals but also offer investors avenues for socially and environmentally impactful and financially rewarding investments.
The above Highlighted Agribusinesses will be Discussed at International Conference on Business Models in Agriculture in Rwanda taking place in Kigali, Rwanda from March 25-28, these three agribusinesses will be among the seven main themes to be discussed. In a bid to promote sustainable agriculture development, this conference, which is set to take place in 2025 and 2026 in Kenya and South Africa respectively, will be a much desired platform for numerous actors in the agribusiness sector
As the world’s attention turns toward sustainable food systems, investing in African agribusinesses becomes a strategic move for those looking to make both economic returns and positive societal contributions.
