subject: Agriculture Investors in Africa [print this page] The three F's that have been the focus of global business challenges in recent years are food, fuel and finance. The global race for food and resources has lead to a positive shift in perceptions regarding African agriculture projects. Africa is considered today the hub of natural resources.
The development of agricultural projects has been attracting foreign investors, still being aware of the risk posed by the land ownership issue. The growing trend of investors from rich countries buying farmland in Africa has been a source of dissatisfaction among campaigners, who consider local producers are going to be marginalised.
Only 3% of African cultivable land is currently being used and, in order to feed the entire population, this percent is far from being sufficient. Therefore, one of the key measures that are vital for the African countries' prosperity and progress is developing the agriculture and agro-infrastructure sector. For this purpose, entrepreneurs have been assisted by a large number of foreign agricultural research institutions.
The changing environment has caused higher demands on food quality, green technology and productivity improvements. About 90% of African agriculture depends on rain, meaning there is a growing necessity of water pumping systems to enhance irrigation facilities. Key areas of investment include agriculture engineering, fruit and vegetable, dairy and fish farming industry.
Some measures for improving the African agricultural system are dwarf plantations, natural insecticides, better seeds, less water crops. More agriculture scientists and practitioners are necessary to develop technology and raise awareness of IT in this sector.
Some encouraging news about African countries' recent and continuing development include Malawi, that has become a net exporter of maize, Tanzania, where smallholder farmers have been supported by the local government with vouchers, for purchasing fertilizers and seeds, Rwanda, with an increasing food production, Ghana, that has significantly reduced hunger levels.
How can international investors boost Africa's agriculture? First, they are supposed to buy land and that means approaching the government of the respective country. The second issue is the ownership of the land, with two options: a short-term or a 99-year lease on the land.
The first-ever West African fund dealing with investments in indigenous seed production companies was launched in July 2010 by The West Africa Agricultural Investment Fund ("WAAIF") and Injaro Investments Limited ("Injaro"). The WAAIF aims at the improvement of income and quality of life by providing high quality seeds to African farmers. These funds are the only opportunity so far for smallhold farmers to access improved seed varieties.
Agriculture Investors in Africa
By: Len Williams
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