Africa Agribusiness to Hit US$1 Trillion by 2030

Africa’s agribusiness sector has been projected to hit US$1 trillion by 2030 with its vast agricultural potential.

This was arrived at in the just concluded Africa Investment Forum in Johannesburg, South Africa, where leaders of the continent’s top agribusiness companies shared their thoughts on the future of the industry.

They were also of the view that Agribusiness would become the “new oil” on the African continent.

“Agriculture is a key priority for the African Development Bank, through our Feed Africa strategy,” said Jennifer Blanke, the African Development Bank Vice President for Agriculture, Human and Social Development.

“Understand that by transforming Africa’s agriculture sector it will become the engine that drives Africa’s economic transformation through increased income, better jobs higher on the value chain, improved nutrition, and so on,” she said in her opening remarks at an Africa Investment Forum session titled, Agribusiness: Investment Conversation with Industry Leaders.

Some agribusiness leaders said there was a need to invest US$45 billion per year to harness the power of agriculture and move up the value chain to create jobs and wealth. At present, only US$7 billion is invested in the sector. Investments from the private sector, leaders said, would create an adequate environment and enhance the emergence of locally owned agro-processing industries, capable of creating jobs and increasing incomes in rural Africa. The continent could become a net exporter of agricultural commodities, replacing US$110 billion worth of imports, as well as doubling its share of market value for select processed commodities.