By: Shira Petrack

Estimated reading time: 4 minutes 

Now more than ever, companies need accurate and up to date market information that can guide them in adapting their strategy to a post-Covid world. While a lot of material can be found online, busy executives do not always have the time to sift through lengthy reports to find the data points relevant to their business. To make it easier for you to get the intelligence you need to enter or expand in the African market, we have put together this short list of highlights from the 2020 Investment Climate Statement on Botswana.*

Information for Investors:

• The Government of Botswana promotes foreign investment in specific sectors, including:
  1. 1. Diamonds
     2. Water and sanitation 
     3. Electricity 
     4. Transportation 
     5. Telecommunication infrastructure 

• Other sectors (not specifically promoted by GoB) with high investment potentials are:
  1. 1. Mining 
     2. Mineral processing 
     3. Cattle 
     4. Tourism 
     5. Financial services 

• Botwana’s Special Economic Zones Authority (SEZA) is currently working on developing eight special economic zones throughout the country to streamline investment in sector-targeted geographic areas.
• The Botswana Investment and Trade Center (BITC) 
  1. Was designed to serve as a one-stop shop for investors or entrepreneurs looking to set up a business or a business partnership in Botswana.
  2. Supports investment projects that will diversify the economy away from dependence on diamond mining and create jobs for, and transfer skills to, Botswana citizens.
  3. Foreigners who wish to operate a business in the country are required to register and obtain the relevant licenses and permits as prescribed by the Trade Act of 2008. 

Information for Traders: 

• Botswana, along with Lesotho, Namibia, South Africa, and eSwatini, is a member of the Southern Africa Customs Union (SACU) which is the world’s oldest customs union. These five states maintain a duty free trading area with a common external tariff.
• As part of its mission to promote trade with the country, the BITC also runs the Botswana Trade Portal, which centralizes all the official information that importers or exporters need to know when setting up their trading business in the country.
• With the exception of certain foodstuff, import permits are not required for goods entering Botswana from other SACU members.
• SACU has a free trade agreement with Iceland, Liechtenstein, Norway, and Switzerland through its agreement with the European Free Trade Association.
• SACU countries have signed reciprocal preferential trade agreements (PTA) with MERCOSUR countries (Argentina, Brazil, Paraguay, and Uruguay) that are in the process of being ratified.
• Botswana is a member of the Southern African Development Community (SADC) and follows its protocol on trade.
   
• Botswana has signed an interim Economic Partnership Agreement (EPA) with the EU, which provides duty and quota free access on Botswanan goods to the EU markets.
   
• Botswana and Zimbabwe have a trade agreement that provides duty-free access for goods within certain parameters.
• Botswana has signed the African Continental Free Trade Agreement (AFCTA), but it has yet to ratify the AfCFTA.

The Legal System: 

• The legal system is based on Roman-Dutch law and influenced by English common law. The legal corpus is made up of legislation, judicial decisions, and local customary law.
• The judiciary is largely regarded as fair and impartial.
• Botswana has a specialized anti-corruption court that handles all corruption cases.
• Some litigants have complained about the turnaround time for civil and commercial cases. To expedite the process and ensure relevant judicial expertise, the Government of Botswana is planning to build a corps of specialized commercial judges within the civil court system that will handle commercial cases.   

Property Rights:

• Botswana’s constitution prohibits the nationalization of property, and the government has never pursued a policy of forced nationalization in the country’s history. The only exceptions are 
  1. 1. Expropriation in exchange for market value within the parameters of the Acquisition of Property Act;
     2. Revocation of an independent power producer’s license and confiscation of the operations in exchange for compensation for public interest purposes within the parameters of the Electricity Supply Act.
• Of the three categories of land in Botswana – freehold, state land, and tribal land – only freehold land (approximately 5% of the land in the country) can be sold to foreigners.
• State land (about 25% of the land in Botswana) can be leased for 50 years for industrial and 99 years for residential use.
• All minerals in Botswana, including those found in private lands, are treated as the property of the state.

Tax Rates:

• Botswana has a 22% corporate tax rate. The Ministry of Investment, Trade, and Industry (MITI) can grant manufacturing companies a reduced rate of 15%. The withholding tax rate on distributed dividends is 7.5%.  

*The United States State Department’s Investment Climate Statements publishes yearly analyses of foreign markets that cover almost all countries in Sub-Saharan Africa. These reports can help companies make informed business decisions regarding their foreign investment and partnership. 

By: Leah Ngari

Estimated reading time: 5 minutes 

In 2011, after 25 years of working in construction and property development in the UK, Simon Dixon wanted a change. He decided to leave England, join a volunteer group operating in a rural part of Kenya called Murang’a, and immerse himself in this new culture. 

A decade later, he is still in the country. In 2015, he took another risk by co-founding Kwangu Kwako, a social enterprise in Kenya that builds affordable urban housing. Aside from empowering people to live in secure, dignified, and affordable homes, Kwangu also creates jobs by hiring construction workers from the communities where it works. Kwangu has already built homes in Kibera, Kawangware and Kangemi, with plans to replicate the model across East Africa and beyond. 

Why Kwangu Kwako

Simon, like many other foreign visitors to Africa, first came to the continent to work in humanitarian aid. Two years into his volunteer work, Simon concluded that the private sector could offer more permanent solutions to the the problems that he was trying to solve as a volunteer. This realization led him to join Sanergy, an existing social enterprise that is building a sustainable sanitation network in underserved urban areas by creating a network of local entrepreneurs who run small-scale sanitation centers.

While Simon appreciates NGOs, he also believes that social enterprises are advantageous in some circumstances. According to Simon, “NGOs are very good for disaster or emergency response. For longer term recovery projects or social improvement, social enterprise can often be more effective and provide longer lasting solutions.” 

How Kwangu Kwako was Started

While working with Sanergy, a fire broke out in Mukuru Settlement, one of the neighborhoods they worked in, and wiped out hundreds of homes. All that remained were two toilets built by Sanergy. “We were getting it wrong,” he realized. The toilets were more durable than the houses! 

According to Kwangu Kwako’s website, an estimated 2 million people live in metal shacks in Nairobi alone. The Kenya Red Cross estimates that 10,000 homes a year are lost to slum fires. Simon, who has a construction background, recognized the social impact as well as the business potential of constructing affordable and durable homes for Kenya’s underserved urban population. He set out to design something that could provide tenants with comfort, security, and pride and truly improve the lives of those at the bottom of the pyramid in Kenya. 

 

Getting Past the Data Problem

To begin designing and building the homes, Kwangu needed market data, as would any other business about to start or expand its operations. Although Simon’s time at Synergy had already introduced him to a lot of people in the communities he wanted to serve, he still needed specific information about his target market’s housing needs and specifications. 

Unfortunately, the lack of pre-existing data is often a major roadblock for companies in Africa. To get around this issue, Simon tried to do as much first-hand research as possible. Both he and his co-founder, Winnie Gitau, spoke to numerous potential customers directly to understand their problems and find out what sort of product would help them most. You can read descriptions of their research on their blog.

Simon is keen to point out that having a co-founder was as critical to success in the company’s early stages as it is today. Winnie is very skilled in community engagement, and she has been essential in enabling Kwangu to get data from potential customers. Simon advises entrepreneurs to find local partners with complementary skills to co-create products and services that will be accepted by the end-user.

 

Getting Started in a New Country

Simon says that he received a lot of help in the initial stages of running his business, including access to office space while his business got on its feet. “There’s a whole network of social enterprises willing to help someone new,” he explains. Building a network early on can greatly ease the way, so Simon recommends co-working spaces and hubs like Nairobi Garage that bring together entrepreneurs from different fields. 

He also advises interested non-Kenyans to take the time to experience Kenya for themselves to create more empathy and understanding. “You are here to enable, facilitate and support,” he adds. Anyone who wants to break into the Kenyan market needs to understand that they can’t import an idea straight from their home market and expect it to work. The environment in every country and every city is different, and what works in one place won’t always work in another.

Registration and Working with the Government

Dealing with regulation is easier now, Simon observes. At the beginning, he spent a lot more time dealing with bureaucracy. Things are faster now, especially with the government’s online systems for registration and tax payment. Simon counsels entrepreneurs to plan ahead and make sure to get the paperwork together well before the deadline. “Don’t leave things for the last minute,” he advises.

Final Words

Simon came to Kenya to try something different for a short while. Ten years later, he is growing his business, making a difference, and fully settled into his adoptive country. “I came with two bags for two years and I’m still here,” he says.

Since he arrived in the country, Simon has seen Kenya develop exponentially. He notes the new highways and increased internet connectivity. Africa is quickly becoming a prime business hub. More and more people who previously considered the continent only as a humanitarian aid recipient are recognizing the value and potential of Africa’s growing private sector. Simon saw a problem that he could fix and built a business to implement the solution. 

He is excited to see where the country and Africa will be in the next five to ten years. “People are beginning to recognize the value that is here.” 

By: Shira Petrack 

Estimated reading time: 4 minutes

The Covid-19 pandemic has caused a recession in Africa for the first time in twenty-five years. The World Bank calculated that the considerable drop in economic activity will cost the region at least $115 billion in output losses in 2020 alone.

Some worry that the restrictions affecting entrepreneurs and small businesses will affect the trajectory of Africa’s middle class for years to come. But the middle class also includes a large share of young people age 15-24 who drive consumer trends in food, entertainment, and connectivity. In the aftermath of Covid-19, this generation will exercise an even greater influence on Africa’s consumer demand trends. 

Covid’s Economic Impact 

In a high-frequency phone survey of Malawi, Nigeria, Uganda, and Ethiopia during May-July 2020, the World Bank found that 77% of households had lost income due to the pandemic. Business income represented the most common source of lost revenue in all four countries, although there were some disparities in the findings: Ethiopians reported significantly less wage income, farm income, and remittances losses than the other three countries. In all four countries, concern about the financial threat of Covid-19 was greater than worry over the virus itself. 

An SMS poll of Kenya, South Africa, Nigeria, Côte D’Ivoire, and Mozambique conducted by GeoPoll during June-July 2020 revealed similar findings: 76% of respondents reported income losses, with almost half (49%) stating that their income decreased “a lot.” In a follow-up survey conducted in November 2020 in the same five countries plus the DRC, the percentage of respondents who told GeoPoll that their income had decreased a lot since June 2020 had increased to 52%. Another 27% stated that their income had decreased a bit. All in all, almost 4 out of every 5 people surveyed experienced a loss of income during this period. Interestingly, although more people reported income losses in the November survey, only 65% of respondents were concerned with paying their expenses, compared to 71% in June. 

Africans are Spending Less 

A majority of respondents, including those who have not experienced a recent loss of income, told GeoPoll that they expect to spend less this holiday season. This thrifty attitude should change by next year’s holidays. A September consumer sentiment survey conducted by McKinsey in South Africa, one of the hardest-hit countries, found that 69% of respondents do not expect the financial impact to last more than a year.  

The younger generation (aged 15-24) is the most optimistic both about the length of the economic impact and their future income prospects. They were also the least likely to report that their income decreased “a lot.” 

Effect on E-Commerce is Varied

The pandemic’s effect on e-commerce has been mixed. The World Bank found that sales decreased for most specialized e-commerce companies, whereas most third-party online marketplaces saw increases in sales. In South Africa, McKinsey found a 90% growth in online purchasing on average across most categories, with online purchases of alcohol, snacks, personal care products, and groceries growing over 100%. GeoPoll, on the other hand, found an overall decrease in online shopping among its respondents, perhaps due to the general decline in spending. 

Small businesses all over the continent are joining digital sales interfaces for the first time. Savvy entrepreneurs are capitalizing on the increased demand by building e-commerce platforms or integrating them into their existing offerings. In March, SafeBoda, a Ugandan rideshare app with an emphasis on safety that matches passengers with motorcycle drivers, launched a food delivery service shortly before the country went into lockdown. Several days later, the company launched a delivery service for food, groceries, and essentials. Flutterwave, a payment platform, set up an e-commerce portal that allows merchants to set up virtual shops and receive payments through Flutterwave. 

Bringing more shoppers to these new online stores depends on improving connectivity on the continent and making it more affordable. Governments can enact regulations to encourage competition in the space. Since young Africans are more likely to use the internet than their older counterparts, their online shopping habits will shape the future of e-commerce in Africa.

The Restrictions’ Collateral Damage  

GeoPoll found that residents of countries that had enacted the most severe restrictions struggled the most financially and experienced the most emotional stress. In hindsight, the lockdowns’ economic cost may outweigh the benefits.

The region has surprised experts in its resilience to the virus. With the exception of South Africa, where over 28,000 people have died from Covid-19 to date, Africa’s average case-fatality ratio (number of deaths per diagnosed cases) is significantly lower than the global average. The continent as a whole has recorded a little under 3 million Covid cases – significantly less than the 250 million that some experts were predicting. While the lockdowns undoubtedly slowed the virus’ spread, many have attributed Africa’s success with the virus to the low median age in the region – the median age in SSA is 18.7 compared to 43.1 in Europe.

The overall public health benefits of the restrictions are also not yet known. For instance, the World Health Organization predicted that the Covid-related disruptions reducing access to treatment will lead to an estimated 20,000-100,000 increase in malaria deaths, depending on the extent of the disturbance, compared with the approximately 40,000 deaths in 2020 caused by Covid-19 in the region.

Looking forward to 2021

It is always hard to predict the future – and it seems downright impossible to do so amid a novel global pandemic. However, one thing is sure: Africa’s youth will play a key role in Africa’s post-Covid economic recovery.

By: Leah Ngari

Estimated reading time: 5 minutes 

Africa’s consumer market is growing. Over the past twenty years, household spending in Sub-Saharan Africa has grown 150% faster than the population. Landry Signé at the Brookings Institution forecasts that total household consumption in Africa will reach $2.1 trillion by 2025 and 2.5 trillion by 2030*. African companies such as Azam and Bidco now include dozens of consumer brands sold across the continent. Large multinationals such as Kraft Foods, Johnson & Johnson, and Volkswagen have ramped up their presence on the continent to meet this growing demand.  

How Big is the African Consumer Class? 

While there seems to be a consensus among private-sector analysts and academic researchers that the African consumer market is growing, it is not always clear how this class is identified and measured. A globally accepted, general definition for the middle class* focuses on average yearly income. For example, the PEW Research Centre defines middle-income households as households that earn two-thirds to twice the national median income. Others categorize households as “middle class” according to total asset ownership or consumption patterns. 

None of these measures can accurately capture the magnitude and spread of Africa’s consumer class. First, data sets regarding income or purchasing patterns are often incomplete or unreliable. Many Africans derive a considerable portion of their income from informal work, which can skew official income statistics. And purchasing patterns mean different things in different places since consumer good prices vary significantly throughout the continent. A person in Lagos, Nigeria, can buy 10 liters of petrol at $4.60, while in Luanda (Angola), the same 10 liters sell for $11.50 – more than double. In eSwatini, 1 GB of Data can cost as much as $21.39, versus as little as $1.97 in Mozambique. These variations mean that consumption levels of specific goods do not necessarily indicate overall purchasing power. 

Second, measuring consumer capacity by looking at income or wealth ignores the fact that household income is often vulnerable to seasonal fluctuations. Many African middle-class members supplement their income with informal side jobs, so their income does not remain steady over time, affecting consumption habits. And for most Africans who still work in agriculture, income is affected by seasonal price fluctuations. As a result, a household’s consumption ability changes throughout the year and between years due to variations in weather patterns and commodity prices. Companies looking to build a long term strategy cannot create an effective African consumer market strategy by looking at income alone. 

Measuring the African Consumer Market

Some data consultancy companies have found ways to include income fluctuations, geographical differences, and consumption patterns when measuring the consumer class. Ipsos used the AfDB identification of the African middle class as people earning between $2-$20 per day as a starting point. Then, they added several criteria of their own to offset disparities and capture a more stable set of consumers. In their report “African Lions: Who are Africa’s rising middle class?” Ipsos suggests using the following consideration to categorize and individual as a “consumer”: disposable income (not spending more than 75% of income on groceries); productive occupation (that the individual is employed, runs a business, or is in further education); and education 

Other data consultancies have scrapped the income indicator altogether. In its report “Finding the Dynamic African Consumer,” Fraym adapted a method initially designed to classify consumers in India. This technique uses asset ownership data and educational level to identify consumers, with a higher educational level offsetting lower asset ownership and vice versa. Assets include durable assets, such as refrigerators and televisions, and household characteristics, such as piped-in water and agricultural land. 

This classification also allows for better cross-country comparisons without relying on unstable exchange rates or pricing discrepancies. Using its method, Fraym identified 330 million consumers in the region, 219 million in just five countries and 94 million in another fifteen countries. 

Why Consider the Consumer Market at the Continental Level 

Looking at the consumer market on a continental level allows companies to compare between different consumer markets in the region and strategize their growth accordingly. According to Fraym, 95% of the consumer class resides in just 20 out of the 54 countries. For example, Nigeria has about 52 million people in the consumer class, but Togo has fewer than 2 million consumers, presenting a very different market environment for investors and consumer-facing companies. 

These differences also present between cities. Lagos in Nigeria and Johannesburg in South Africa top the count with over 8 million consumers, and Kinshasa in the Democratic Republic of Congo and Luanda in Angola have more than 4 million. Since most African consumers live in cities, companies should focus their market research on cities rather than countries. 

Using Data to Inform Strategy

Companies cannot rely on generalized income levels or spending data to assess the current magnitude or future potential of consumer demand in Africa. Businesses that want to serve Africa’s growing consumer base should use the data on the continental level to identify the cities where they could grow and invest resources to study consumers’ behaviors and characteristics in that city. The lack of readily available, reliable, and comprehensive data sets should not deter companies looking to grow in Africa from making informed strategic decisions based on realistic projections. 

*A note about Covid’s impact and terminology

Most of the projections quoted in this article pre-date the Covid-19 pandemic. Although the specific numerical forecasts need to be adjusted in light of the contraction across the continent, the considerations regarding the best ways to measure consumer demand on the continent remain.

The term “consumer class” and “middle class” are used synonymously.

By: Shira Petrack

Estimated reading time: 4 minutes 

African farmers have been growing cannabis in Africa for centuries. Nevertheless, consumption of the plant for either medical or recreational purposes is banned almost everywhere on the continent. Recently, however, the growing global demand for medical cannabis has caused several African countries to rethink their cannabis cultivation laws. 

Indeed, as more and more countries worldwide legalize marijuana consumption for medicinal and even recreational purposes, the market for legal cannabis is exploding. The global market for legal cannabis is expected to reach almost $43 billion by 2024. By 2027, the demand for legal cannabis in Europe alone should hit $37 billion, up from $3.5 billion in 2019 – an almost 30% CAGR.

Legal Cannabis Cultivation is Growing in Africa 

In 2017, Lesotho became the first country on the continent to grant an administrative license for the commercial cultivation of marijuana for medical and scientific purposes. Since then, several countries have followed suit, including Zimbabwe, South Africa, Malawi, eSwatini, Zambia, Uganda, and Rwanda. Ghana has also authorized cannabis production, but only for varieties with THC (the plant’s psychoactive ingredient) levels of 0.3% or less.

Some of these countries, such as Malawi and Zimbabwe, are major tobacco exporters. Policy makers hope that cannabis can replace tobacco as the country’s top cash crop, given tobacco’s destructive environmental footprint. 

While most countries that allow cultivation also authorize the consumption of cannabis for medical purposes, Uganda and Rwanda are currently growing the plant strictly for exports. 

In other countries where cannabis production is still illegal, such as Tanzania and Kenya, large amounts of the crop are still grown and exported. The economic incentives to legalize the already existing cannabis trade might mean that these countries’ regulations could also change. 

What Makes Africa Particularly Suited for Cannabis Cultivation? 

Most of Africa’s climate is favorable to cannabis cultivation. The plant likes warm and sunny weather and does not do so well in the cold. Certain cannabis strains can also thrive in extreme heat. Some growing techniques such as dry farming allow farmers to grow the crop using mostly rainfall with minimal additional watering if the climate conditions are right. Drip irrigation is also a cheap and efficient way to water cannabis crops in Africa. 

The cannabis plant grows in stages. First come the initial germination and seedling. Then, the plant enters the vegetative phase and produces most of its leaves and branches. After several weeks, the plant can enter the flowering stage. If the plant is a male plant, it will grow pollen sacks. If it is a female plant, it will produce flowers (“buds”) that can be smoked or processed into tinctures and oils. 

The plant switches from the vegetative phase when the days begin to shorten and the nights last at least 12 hours. Even though cannabis needs 12 hours of darkness to bloom, prolonged and continuous sunlight (up to 12 hours) will produce the best flowers. Thus, most of Africa is optimal for cannabis production since almost the entire continent lies within 35 degrees of the Equator, where the days never get too short. 

While many areas of the United States are suitable for outdoor cannabis cultivation, most of Europe lies north of the 40th parallel and so does not receive enough sunlight during the winter. The plant cannot flower in the European summer either, since the long summer days keep the plant in the vegetative phase. Of course, European growers could grow their crops indoors using artificial lights, but this requires a tremendous amount of electricity, which is costly both in terms of money and environmental toll. 

Global Potential of Africa’s Cannabis Market 

Africa, with its favorable climate conditions and proximity to Europe, seems well placed to cater to the growing European market for medical cannabis. The continent’s warm weather, rich soil, and abundant sunshine can help it compete against established cannabis powerhouses. Unlike Canada or the Netherlends, where the cold climate requires cannabis to be grown in resource intensive greenhouses, cannabis in Africa can be cultivated outdoors in open fields. Indeed, several American and Canadian companies have already set up or expressed interest in setting up farms and processing plants on the continent, despite the flourishing cannabis cultivation industry in their home countries. 

Setting Up a Cannabis Operation in Africa 

There are a lot of factors to consider before setting up a cannabis operation in Africa. First and foremost, you need to decide on the country. Some countries have legalized medical cannabis cultivation but not processing. Others authorize processing but have already granted long-term exclusive licenses to major companies. Your target market will also affect your choice since different countries have different export agreements with off-continent partners. 

Once you’ve decided what country you want to work in, getting the legal license can pose a new set of complications. And after you receive your license, you will need to build your operation, hire the right people, and set up your local supply chain. 

That’s where we come in. Empower Africa’s Agriculture Solutions and Consulting Services combine the world’s top agronomy experts, industry-leading technology, and tailor-made business-oriented solutions. We can walk you through the process to help you build the most efficient and profitable version of your African cannabis operation.

Contact us, and let’s grow your business.

By: Shira Petrack

Untapped business opportunities abound in Africa’s agriculture sector. Beyond the profits, however, investing in African agriculture offers the rare chance to catalyze growth in a sector that employs more than half of all working people in Sub-Saharan Africa and to move the continent towards food sovereignty. 

Today, despite the considerable human labor working on some of the most extensive tracts of arable land left in the world, agriculture accounts for only around 15% of SSA’s GDP. What is more troubling is that continent is still not growing enough food to feed its population. 

Most Food on the Continent is Imported – and It’s Still not Enough

Instead of attaining food sovereignty through the farmers’ agricultural efforts, Africa imports most of its food. The continent’s already sizable food import bill increases year after year and is expected to more than triple from $35 billion in 2017 to $110 billion by 2025. 

The low agricultural yields are largely due to the lack of investment into basic efficiency raising measures such as irrigation systems, mechanization, and adequate storage facilities. Up to 70% of farmers cultivate parcels of less than two hectares manually using hoes. 

Even with the imports, there is still not enough affordable food for everyone. Around 1 in 5 people on the continent are classified as severely food insecure, and over half the population is moderately food insecure. Thirty-three percent of children under the age of five are considered stunted. 

These statistics translate to over 224 million people on the continent who live in households where at least one person during the year has reduced the quantity of the food, skipped meals, gone hungry, or gone a whole day without eating because of a lack of money or other resources. At least 610 million people live in households where at least one person was forced at times during the year to eat low-quality diets or reduce the quantity of food they would normally eat because of a lack of money or other resources. And Africa is the only region in the world where the number of stunted children has risen in the past twenty years.

Building a Strong Agricultural Sector – What Will it Take?

Affluent countries, multinational organizations, and international foundations have been sending commodities and other types of international assistance to Africa for decades. Unfortunately, food aid is too low and too sporadic to bring real food security to the continent. 

Instead, sustainable food sovereignty on the continent will most likely come through the private sector. Companies and individuals who want to make a difference need to realize that investing in agriculture in Africa is not just a moral imperative – it is also a savvy business decision. In the short run, investments in irrigation, mechanization, storage facilities, and modern inputs will allow farmers on the continent to grow enough food for them and their communities. In the long term, these same farmers will be able to produce and store surpluses and sell them throughout the continent and internationally. The world’s population is increasing at a dizzying pace, and with the right investments, Africa can become its breadbasket.  

By putting their “skin in the game,” international investors and agribusinesses will be more motivated to continue investing in African agriculture year after year. And since Africa has such large tracts of underutilized arable land, investors will be able to reap significant rewards by giving local farmers the means to obtain the most from their fields. 

In the past decade, private equity investments into agriculture have risen globally, with most investments going to Africa. But a much larger investment is still needed. According to a study by McKinsey & Company, Sub-Saharan Africa requires an investment of $8 billion for improved storage and $65 billion for irrigation to achieve its agricultural potential. In terms of inputs, farmers across the region need eight times more fertilizer and six times more quality seeds to reap the most from their soil.

How to Start Investing in African Agriculture 

If you are an agribusiness executive or investor reading these lines, you might realize the opportunity – but you don’t know where to start. When it comes to Africa, it is much harder to use the web to obtain even basic market data, and many seasoned businessmen lack the connections necessary to find the right local partners. Even after such partners are identified, conducting due diligence can be nearly impossible. 

That’s where we come in. Whether you are an international investor looking for the right local partner, an agribusiness executive considering expanding into or across Africa, or a local farmer wishing to increase your yields, we can help. Empower Africa’s Agriculture Solutions and Consulting Services combine the world’s top agronomy experts, industry-leading technology, and tailor-made business-oriented solutions to help you build the most efficient and profitable version of your African agriculture business. 

Contact us, and let’s grow your business.