Wednesday, November 29, 2017
5 Exciting Reasons Why You Should Start A Business in Africa’s Agribusiness industry.When most people think of agriculture in Africa, images of poor and overworked farmers with crude tools on a rural farm readily come to mind. Many, especially young Africans, still think that agribusiness is a poor man’s occupation. Nowadays everybody wants a white-collar office job in the city. Agribusiness is hardly on anyone’s mind. Did you know that since 2009, investors in the USA, Europe, Middle East and Asia have been buying and leasing millions of hectares of African land for agricultural purposes? Many people may not know it but there’s a trend of serious land grabbing by foreign interests for African land. Did you know that Foreign Direct Investment in African agribusiness was $10 billion in 2010 and is projected to reach $45 billion by 2020? Agriculture is taking a huge leap in Africa and investors want a piece of the action too. Did you know that Africa’s agribusiness industry will be worth $1 trillion by 2030! That’s huge! If this projection by the UN comes true, agribusiness will become the ‘new oil’ in Africa. Agribusiness is one of the best business opportunities in the world because food never goes out of fashion. People must eat food everyday! Currently, Africa’s population is just over one billion people. At its current growth rate, the continent’s population is expected to reach 2.2 billion by 2050. Now and in the future, Africa will always have a lot of mouths to feed. Africa currently spends billions of dollars every year to import grains, flour and all kinds of finished and semi-finished foods which it can produce locally. There is a huge opportunity for entrepreneurs who can provide cheaper and locally-grown alternatives to the food that Africa imports. It’s not just the food industry that depends on agribusiness. Several other industries, especially the manufacturing and processing industries, depend on agribusiness for a wide range of raw materials. As Africa’s economies continue to grow, the demand for raw materials will surely increase and create more interesting opportunities for agribusiness on the continent.