Lagos, Nigeria (PANA) – Africa has the potential to increase the value of its annual agricultural output from US$280 billion in 2010 to about US$500 billion by 2020, according to an African Development Bank (AfDB) report.
The report also said that Africa has the potential to attract US$ 880 billion investment in agriculture by 2030.
“Africa’s projected output is expected to impact significantly on its demand for upstream products such as fertiliser, seeds, pesticides and machinery.
“It is also expected to result in the growth of downstream activities such as bio-fuel production, grain refining and food processing,” the report said.
It noted that with credible public-private partnership and sound investment, both upstream and downstream markets could be valued at up to US$ 275 billion by 2030.
“One major challenge, therefore, is how to develop new institutional arrangements between the public and private sectors that foster private sector development without leaving smallholder farmers isolated during the transition.
“Currently, large investment opportunities still exist for viable agriculture and components of these investments will include expanding infrastructure across the agricultural value chain,” the report added.
It said if this is done, it will ease the movement of agricultural produce from farmers to markets, both locally and regionally.
The report said that untapped value addition in agriculture as well as improvements in the business regulatory environment and expansion across the continent’s “supermarket”, provided unique investment opportunities.
“Such market-oriented investments also promote rural employment, facilitate technology transfer, and build a sound foundation for sustainability and long-term sector transformation.
“Despite the recent global financial and food crises, the longer-term inclusive growth prospects of Africa’s agriculture are bright, especially if smallholders are assisted to specialise, add value and reach these growing markets ”, the report added.
In particular, the report said the surge in food prices in 2008 and the persistent food price volatility, provide a unique opportunity for African countries to increase their investment in the agriculture sector, to ensure food security and price stability.
Photo: Afric green media
