I’m excited to share insights into a topic close to my heart — the transformation of Africa’s agriculture sector. In a continent marked by incredible potential and unique challenges, I’ve often found myself contemplating a key question: How can we harness the power of finance to elevate food security and become a force for good?

As we delve into the intricacies of Africa’s primary and secondary agriculture landscape, it’s clear that progress has been made, but there’s still work to be done. Despite a youthful and burgeoning population, inequality persists, heightened by global events like the Covid-19 pandemic and geopolitical tensions. This has led to volatility in food prices, making food security a pressing concern.

South Africa shines with a world-class agriculture sector, but the rest of the continent is characterized by countless small-scale farmers, creating a fragmented funding environment. Price volatility, currency fluctuations, and underdeveloped supply chains add to the complexity, turning financing into a high-risk endeavor. The turbulence of 2022 in the agriculture sector underscores these challenges.

Navigating trade on the continent presents additional hurdles, with Euro and Dollar liquidity issues complicating new capital projects, especially as borrowing costs rise. Agriculture, being capital-intensive, relies heavily on funders to create value beyond traditional investment banking models.

So, how do we tackle this?

According to the February article in the Daily Maverick the strategic focus lies in funding the import and export value chains, where deals of significant size and impact can be realized. It’s crucial not to view projects in isolation but to consider the entire ecosystem. The goal is to make a tangible and sustainable impact on the agricultural sector by identifying collaborative opportunities with key partners.

According to ABSA it is setting the stage by providing Kenya access to relevant information, coaching & mentorship, markets, and sustainable finance. Empowering various stages in the agricultural value chains addresses unique client needs comprehensively. As well as facilitating import lines in Mozambique, contributing to the processing of wheat, maize, and crude vegetable oils into edibles. The funding of a cashew processing facility in the Ivory Coast and a significant investment in a Tanzanian sugar production facility align with their commitment to transformative, long-term projects that impact food security and sustainability goals.

I view agriculture as a key growth sector on the African continent.