Despite Africa having approximately 60% of the world’s uncultivated arable land, the continent still spends up to $50 billion annually importing food, while up to 40% of its harvest is lost post–harvest due to poor storage and other logistics reasons. The question arises: Why is Africa unable to feed itself despite having enough resources to make the continent the food basket of the world?
Africa’s agricultural sector has the potential to power the economic growth of the continent while supporting millions of livelihoods and contributing significantly to the continent’s GDP. With the right investments and strategies, this sector can unlock new opportunities, drive prosperity, and ensure a brighter future for Africa.
On the global scene, talks of renewable energy, Artificial Intelligence, and Fintech are shaping the future of the global economy, and not to be left behind, African countries are keying into the opportunities that these new trends present. However, no meaningful development can take place on the continent without first achieving food security, which is the foundation of any thriving economy.
Attaining food security will not only enhance the well-being of Africans but it will also create millions of jobs across the continent, save the continent tens of billions of dollars annually, and present the continent with an opportunity to earn hundreds of billions of dollars more for Africans from food exports to the rest of the world.
Apart from the fact that 60% of the arable land in Africa remains uncultivated, studies have shown that about 80% of the food produced on the continent are produced by smallholder farmers who practice subsistence farming with very little yield compared to when modern farming techniques are implemented.
Depending on various factors, farm yield can increase by between six and tenfold per hectare when modern farming techniques are used as opposed to subsistence farming. Effectively speaking, the average African farmer can increase his or her yield by at least six fold if modern farming techniques are used.
However, the problem doesn’t end with increasing yield, as we noted earlier, up to 40% of harvested crops are lost post-harvest due to poor storage and logistics issues, so the problem doesn’t end with increasing crop yield, but investments must be made to build access roads and rail lines to evacuate the harvested crops. Conducive storage facilities must also be built, while adequate investments must be made in local processing industries to not only preserve the harvested crops but also to add value to them.
Due to the challenges of storing milk sourced from cows, in rural areas in Nigeria, a major player in the Nigerian dairy industry, Sebore Farms Limited decided to invest in milk collection centres across the North Eastern part of the country to ensure adequate supply of fresh milk for its 150,000 litres per day capacity factory in the region of the country. To ensure that the milk remained fresh, cold storage facilities were built in 78 collection centres across the region, along with solar power infrastructure to ensure uninterrupted power supply, which is necessary to keep the milk collected fresh.
While the investments made was quite substantial, it has not only created a steady source of income for small holder cattle owners who now generate daily income from their milk, it has reduce the problem of famer/herder conflict in that region of the country as cattle herders are now becoming more sedentary instead of roaming their cattle across vast distances as they don’t want to roam too far away from the milk collection centers where they generate revenue from their daily milk sales.
While Sebore’s farms initiative is novel in Nigeria, it promises to help Nigerian cattle farmers focus more on milk production and increase daily milk yield per cow from less than 1 litre per cow as it presently obtains to up to 5 litres per cow when best practices are implemented using modern dairy farming techniques. While a daily yield of 5 litres is small compared to the global average of about 15 litres, a fivefold increase in milk generated by the cattle owners is a considerable boost to their revenue.
Effectively speaking, to fully benefit from investments in the agricultural sector, it is necessary to enhance products’ market value through processing, packaging, and branding to stimulate economic growth and promote food security. There are also opportunities to tap into international markets to generate foreign exchange earnings to boost the continent’s economy.
Leveraging technology, such as precision agriculture, remote sensing, e-commerce platforms, and mobile applications, can also improve productivity and market access, while implementing technologies like drought-resistant crops and precision irrigation systems can help farmers adapt to the challenges of climate change.
By investing in the agriculture value chain, Africa will not only accelerate GDP growth and improve food security, but employment opportunities will also be created, particularly for youth and women, contributing to poverty reduction and economic empowerment. By increasing food production and availability, inflation will also be reduced, while social issues like banditry across the region will be curtailed, thus promoting a more sustainable development.
While a lot is still left to be desired in the agricultural output of the continent, in 2024, Africa reached new heights in agricultural production, with record results in coffee, cocoa, maize, rice, and palm oil production. The sector supported over 120 million direct and indirect jobs, contributing 25% to Africa’s combined GDP. Countries like Côte d’Ivoire, Ethiopia, and Burkina Faso have been able to make significant strides in transforming agriculture into a cornerstone of economic development and poverty reduction.
To fully unlock the potential of Africa’s agricultural sector, investments are needed in basic Infrastructure such as roads, rail lines, ports, and power supply, while irrigation systems are needed to improve crop yields and reduce water waste. Improved seeds and fertilizers are also needed to increase crop productivity and resilience, while extension services should be made readily available to farmers across the continent. By prioritizing agriculture and investing in these areas, Africa can create a more resilient and prosperous future, driving economic growth, improving food security, and reducing poverty.
Oshobi, a development economist, management consultant, and author, writes from Lagos, Nigeria.