Although only 6% of the large land mass is available for farming, agriculture remains the backbone of the second-largest continent in the world. Agriculture will remain a central focus for Africa, considering the population will grow to about 2.5 billion people by 2050. This growth presents vast Agribusiness Opportunities in Africa, making the sector a critical driver of economic development and food security.
But it’s not just the population that’s pushing the growth of agriculture on the continent. In 2024, the African food and beverage market was valued at approximately $5.95 billion and is projected to hit $8.57 billion in 2031. A significant jump brought about by the growing population’s preferences, urbanization, and technology.
There are several agribusiness opportunities in Africa for entrepreneurs, and now is the perfect time to take advantage of them.
Agribusiness Opportunities in Africa: The Current State and Future Prospects
Agriculture and agribusiness is a major contributor to Africa’s economic growth. It creates more than 60% of jobs in West Africa alone and employs a large portion of the continent’s labor, accounting for two-thirds of the working population. In addition to employment, agribusiness contributes 30-60% to various countries’ GDP. In some regions, its contribution to the manufacturing sector’s GDP can reach 64%.
A complementary benefit of this is that due to its major contribution to providing employment and making up a large percentage of the continent’s GDP, it is also helping to eradicate poverty and empowering the citizens financially.
Some of the primary agricultural produce on the continent include corn, wheat, rice, cassava, and sweet potatoes. You can also find fruits and vegetables like bananas, pineapples, oranges, dates, tomatoes, and onions, with South Africa being the leading producer of citrus fruits, grapes to be precise.
Cash crops are not exempted. Cocoa Beans are produced predominantly in West Africa, especially in Côte d’Ivoire and Ghana. Cashew nut is another cash crop in Nigeria and Tanzania. You can also find oil palms with large plantations in Nigeria and Côte d’Ivoire.
Still, the World Bank thinks the Agriculture and Agribusiness sector is underperforming. Why is that? Several challenges still need to be addressed, which are the very opportunities investors and entrepreneurs can take advantage of today.
The Biggest Challenges Facing Agriculture and Agribusiness Opportunities in Africa Today
As business-minded individuals, every entrepreneur knows that wherever there are challenges, there are also opportunities for people willing to create solutions to the problems for the people and continent.
Below are some of the key challenges facing Agriculture and Agribusiness in Africa.
Limited technological adoption
There are several reasons why farmers are not adopting technology in their farming processes and activities. One top reason is the inability to access the Internet. As a result, many subsistence farmers in rural areas do not have access to important information that can make them better farmers or help them produce better farm yields.
This is an opportunity for entrepreneurs to focus on making modern technology accessible and affordable for farmers.
Deficient Infrastruture
The poor condition of roads leading to markets and urban centers from the farm is at the top of the list of deficient infrastructure. As a result, farmers spend more money on transporting their goods from farm to market. Those who would rather not are left at the mercy of middlemen. There is also the issue of adequate storage facilities for harvested produce.
Post-Harvest Losses
Similarly, the inability to access markets and urban centers after harvest leads to high post-harvest losses. The lack of proper storage systems for harvested crops leads to waste and the inability to make a profit for affected farmers.
Restricted Market Access
Tied closely to deficient infrastructure is restricted market access. Because farmers cannot access markets and urban centers, they rely on middlemen who exploit them and offer low prices for produce. In the end, the farmer is the least paid for farm produce compared to final prices.
Limited Access to Finance
Many farmers in Africa are subsistence farmers, contributing about 70% to food supply on the continent. As a result, it is understandable that they need capital support to invest in essential inputs like tools, fertilizers, and irrigation systems. The limited access to capital hinders productivity and prevents farmers from adapting to climate-friendly farming practices.
Lucrative Agribusiness Opportunities in Africa for Entrepreneurs
We have taken at some of the unique challenges of agriculture and agribusiness in Africa. What are the opportunities open to entrepreneurs and investors across the value chain? Let’s take a look at them.
AgricTech Solutions:
Many forward-thinking entrepreneurs are already building digital platforms, bridging the gap between farmers, buyers, and ready markets. A good example is Nigeria’s Zowasel, a digital marketplace that connects African farmers with national, regional, and global markets.
Another example is Ghana’s TroTro Tractor. TroTro tractor links farmers in need of tractors or other mechanized farming tools with tractor operators. On the platform, farmers can request, schedule, and prepay for tractor services.
Sustainable and Organic Farming
Entrepreneurs can open up Africa’s agribusiness to the world by engaging in sustainable and organic agribusiness models that are climate and environmentally friendly. And this doesn’t mean we have to move away from traditional African practices. Many eco-friendly farming practices have been lost throughout history.
The Zai ancestral agricultural technique from Uganda is a good one. The technique helps soil regain its fertility for better yields. Yacouba Sawadogo used this technique to reforest tens of hectares of desert land by growing more than 90 species of trees.
Agro-Processing & Value Chain
Entrepreneurs interested in agro-processing can focus on converting raw agricultural materials into finished products. Agricultural produce can be processed into packaged foods, juices, and dairy products, creating more value and revenue and reducing post-harvest losses.
Export & Supply Chain Management
Export and supply chain management are other lucrative opportunities that entrepreneurs can explore. You can focus on bridging the gap between farmers and international markets. This can also cover storage facilities and transportation.
Zambia’s ZAMBIA Fresh market aims to improve supply chain efficiency for fresh produce by “offering local farmers a central market infrastructure to bring their crops to market and offer consumers products that are traceable and meet international quality standards.”
Rwanda’s Afri Foods exports fresh produce and processed agricultural products to the United Arab Emirates, the United Kingdom, Belgium, Germany, France, and the Netherlands.
Agribusiness, although underperforming, is the future of Africa’s economic transformation, offering limitless opportunities for entrepreneurs. Entrepreneurs can tap into the growing demand for food and agricultural products by leveraging technology, sustainable practices, and innovative business models.
Now is the time to invest in agribusiness and contribute to the continent’s food security, economic growth, and job creation while enjoying significant returns on investment.
