Africa’s food, agric market size will rise to $1trn by 2030 — AfDB
Africa’s food and agriculture sector is poised for transformative growth, with its market size projected to reach $1 trillion by 2030. This revelation was made by Dr. Akinwumi Adesina, President of the African Development Bank Group (AfDB), during the opening of the 2024 Africa Investment Forum Market Days in Rabat, Morocco.
Dr. Adesina underscored the continent’s vast investment opportunities, particularly in infrastructure, green energy, and critical minerals for the global energy transition. The Africa50 Infrastructure Acceleration Fund, under his leadership, has already secured $500 million, while the Alliance for Green Infrastructure has attracted $10 billion in G7 support.
Citing Moody’s Analytics, he debunked the myth of Africa being a high-risk investment destination, revealing that Africa has the lowest default rates on infrastructure investments globally.
Adesina called on investors to embrace Africa’s unique opportunities, including value addition in critical minerals and the burgeoning agri-food sector. “Population is destiny,” he emphasized, noting that Africa’s population is expected to double by 2050, driving unparalleled demand for food, housing, and digital services.
Source- Business Day
Expert Review for Agri-Food Stakeholders
The projection of Africa’s food and agriculture market reaching $1 trillion by 2030 signals immense growth potential for agribusiness stakeholders. For decision-makers, this insight offers a roadmap to align strategies with emerging trends in agri-food and green infrastructure investments.
Key Opportunities for Agri-Food Stakeholders:
1. Scaling Agricultural Productivity:
a. Invest in climate-smart agriculture to meet growing food demand while ensuring sustainability.
b. Promote value addition in agri-food processing to maximize returns on raw produce.
2. Leveraging Infrastructure Investments:
a. Capitalize on AfDB-driven initiatives like the Alliance for Green Infrastructure to enhance supply chain resilience.
b. Integrate digital tools and energy-efficient systems in farming operations to optimize productivity.
3. Tapping into the Green Economy:
a. Focus on Africa’s critical minerals for battery energy storage and electric vehicle markets, creating synergies between agribusiness and green energy.
4. Fostering Inclusive Growth:
a. Partner with private capital firms increasing allocations to African markets, particularly in agri-food sectors.
b. Encourage youth participation in agribusiness through targeted skills development and funding initiatives.
5. Lessons for Nigeria and Beyond:
a. With Africa’s population set to double by 2050, agribusiness players must prepare to meet the demands of a rapidly urbanizing consumer base.
b. Low default rates on infrastructure investments, as highlighted by Moody’s Analytics, reinforce the financial viability of African agribusiness ventures.
Call to Action:
Africa’s agri-food sector is at the cusp of a transformation. Stakeholders must seize the moment to innovate, invest, and collaborate. By embracing policies that support green infrastructure and sustainable farming practices, Africa can solidify its position as the global hub for agricultural and green economy growth.
