FOOD & AGRICULTURE
New investments will give Africa the lead in agri-development
SOLA DAIVID-BORHA AND LINDA MANDA
At a time when the rest of the world is re-thinking its approach to commercial agriculture , Africa has a clear opportunity to refresh its approach to the sector and become an emerging force . Big shifts are already happening in food production , land and water use , and the integration of agri-tech and product tracing . If African firms take an early lead during this transition , they will be well placed to compete globally by building enduring assets and commercial advantages beyond primary production .
The financing of new investments in agriculture has always relied on a healthy financial eco-system : active banks , sound insurers and lively futures markets . The next set of gains will come from new platforms that allow small and large firms to connect to each other and to their shared stakeholders . Reciprocal exchange of market data will make smaller , efficient players more visible to large buyers .
“ Without continued advances in agricultural productivity , the whole project of African advancement is at risk ,” according to Linda Manda , Sector Head Agribusiness , Corporate and Investment Banking at Stanbic Bank ’ s parent company , Standard Bank . “ The stakes are high for all of us ”, says Ms Manda , “ because communities in Africa rely on the agriculture industry for much more than food : employment , investment and infrastructure development are all part of the deal .” Over half ( 52 %) of all people in Sub-Saharan Africa are employed in agriculture ( 2019 ).
THREE RECENT DEVELOPMENTS : HIGHER VALUE INCENTIVES
Three recent development milestones suggest that African firms are ready to move beyond low-margin primary production while remaining active in agriculture . According to Sola David-Borha , Chief Executive of Africa regions at Standard Bank , “‘ higher-value economic activity is even more likely if finance , technology and trade
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