The Opportunity

African Agriculture – The Emerging High Growth Opportunity

Africa is positioned to be fastest growing agricultural region

McKinsey ** Doreo Analysis, FAO *** FAO, World Bank

 

There are three key reasons why Africa is positioned to be the fastest growing agricultural region:

  1. Majority of the Worlds Uncultivated Arable Land: Africa has the majority of the world’s uncultivated arable land. In addition, the continent has a significant amount of land currently cultivated and utilized sub optimally. Nigeria for instance has over 15 million Ha utilized to produce low yielding varieties of sorghum and millet.
  2. Demonstrated High Growth in Yields: Due to limited investment in R&D, yields in Africa are still relatively low. However, as demonstrated with Soybeans in Nigeria, with innovations developed and driven by the International Institute of Tropical Agriculture (IITA) headquartered in Nigeria, yield growth can dramatically outpace the worlds average growth. Currently Nigeria’s annual yield growth rate for soybeans is 5X faster than the world average.
  3. Significant Opportunities for Irrigation: Africa has vast water resources, however, due to low investment in irrigation, these resources are still yet to be tapped for agricultural purposes. With the right investment Africa can unlock millions of hectares of additional capacity and reduce weather associated agricultural risks.

 

Case Study on Primary Crop Production† – Nigeria vs. Thailand

With similar climatic conditions and four times the agricultural land, Nigeria is poised to go through a similar agricultural revolution as Thailand, a leading agricultural economy with over $30 Billion in exports annually and one of the world’s lowest unemployment rates, below 1.4%.