Why Sub-Saharan Africa Can Become a Key Contributor in Meeting Global Food Demand

In Africa, food insecurity continues to be a major problem. 30% of the population in sub-Saharan Africa is at risk of starvation. The continent also plays an essential role as a global breadbasket due to the diversity of its cropping systems. And yet, agriculture in this region is failing to thrive. Numerous problems require fixing before supply can keep up with demand, including a shortage of technology and the loss of processing opportunities.

The tide can be turned

Nonetheless, there are substantial prospects to be had across Africa. Nine of 44 sub-Saharan African countries will make up nearly two-thirds of the overall growth potential. Three nations in the form of Ethiopia, Nigeria, and Tanzania will then make up around 50% of the activity of these select countries.

Up to 840 million hectares of untapped agricultural land could be used to boost production across Africa. However, much of this land is in isolated regions, hinting that land expansion is unlikely to be a significant driver of growth. Instead, the rising production of smaller-sized farms will be the most considerable driver. For instance, there are fewer than 100 farms larger than 50 hectares in Nigeria while there is also a growing class of five to 100-hectare size farms across Africa.

“This suggests two primary categories of farmers emerging in sub-Saharan Africa. On one hand, there is a rising class of emergent farmers who often reside in cities, acquired their land later in life, and are relatively well educated. These farmers are typically already using inputs, have good access to market, and can influence agricultural policies in their countries. However, these farmers often fall into “a missing middle” and can have trouble obtaining access to loans or more sophisticated services to meet their needs,” McKinsey & Company shares.

“Many farmers in Zambia, (…) for example, had land sizes greater than ten hectares but struggled to secure sufficient financing to buy all the inputs they needed to farm their full plots. Financial institutions still considered them too small or risky. The larger farms in Nigeria—many of which were owned by individuals who sought to invest in agriculture after the oil-price drop in 2015 encouraged diversification in income sources—struggled to obtain the agronomic expertise and more sophisticated inputs required for them to achieve their productivity potential.”

The required changes

Nigeria has just undertaken the challenge of optimising agricultural prospects. Traditionally, the country's cashews were mostly shipped to other countries for shelling. The nation, on the other hand, has been incentivizing agro processing. Furthermore, other countries such as India are beginning to boost investment in order to enhance the technologies involved in processing within Nigeria. Agro processing will surely increase efficiency and assist in meeting customer demands.

In order to tackle supply challenges, Africa’s industry must:

·????????Better service to agro-traders

·????????Innovate regarding routes to market

·????????Grow and streamline distribution

·????????Look at more flexible payment agreements

Meanwhile, to meet demand requirements:

·????????Invest in farmer engagement via existing and modern initiatives

·????????Understand farmer segmentation more effectively

·????????Customise service to local preferences and requirements

Looking ahead

All in all, technology will drive the overhaul across the African continent. The likes of cryptocurrency, blockchain, cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) have already proved to be valuable assets to tackle challenges such as cybersecurity and travel operations. They will also play their part in the agriculture field. Notably, blockchain will help deliver secure and traceable transactions across nations and markets even in remote areas.

Thus, technological investment is a must in this next chapter. Soybean, cashew, sorghum, millet, coffee, and sesame are just some of the core commodities grown in Africa. Therefore, these growth initiatives will combine to meet ever-growing demand across the continents.

Sources: Statista, McKinsey & Company, KDHI Agriculture