A World Bank report states that agriculture and agribusiness in Africa have the opportunity to grow to a trillion-dollar market by 2030.The report titled “Growing Africa: Unlocking the Potential of Agribusiness” calls for the need to increase access to capital, electricity, technology, and irrigated land to allow for better and increased farming. World Bank Director for Financial and Private Sector Development in Africa Gaiv Tata comments that “a strong agribusiness sector is vital for Africa’s economic future.”

Currently, the size of Africa’s food and beverage market is at $313 billion. This number is projected to increase more than three-fold to $1 trillion by 2030. This growth in the agriculture industry in Africa could lead to an increase in jobs and growth, a reduction of hunger and poverty, and the ability for African farmers to compete better globally by exporting surplus crops.

The report stated that as of now African agriculture and agribusinesses are underperforming with many other developing countries such as Brazil, Indonesia, and Thailand exporting more than all of Sub-Saharan Africa combined. The import of food products is still rising as exports are falling, a trend, the report says, that can be reversed through good policies, and public-private investment and partnerships.

Much of Africa’s land and water is left underutilized. More than half of the fertile yet uncultivated land in the world is in Africa. And only two percent of Africa’s abundant water resources are made use of compared to the global average of five percent. Africa is the leading importer and consumer of rice in the world with $3.5 billion spent on importing rice from other countries. Though much of Africa is suitable for dairy production, Kenya is the only country to have established a competitive dairy industry.

The report emphasizes that agriculture and agribusiness should be the main prerogative in the development and business agenda in Africa. African agriculture and agribusiness is now being recognized as a powerful and imperative driver in the continent’s growth, accounting for nearly half the continent’s economic activity. More investment through irrigation expansion and increased research into crop varieties would further strengthen the agro-economy. Additionally, when governments effectively work with farms to link them to consumers, they create a more sustainable and dynamic food market rather than only maintaining a reliance on food imports. A strong agriculture and agribusiness market in Africa is key to greater prosperity and a better future for Africa.

“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, World Bank Vice President for African Region.

– Rafael Panlilio

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