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Agribusiness: Africa’s New Investment Frontier

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In the past decade, a stroll along the aisles of any African supermarket is revealing: there is a new wave of home-brewed brands that are fast becoming household names. Products like Dangote rice from Nigeria, Akabanga pepper oil from Rwanda and Tomoca coffee from Ethiopia attest to the gradual but persistent evolution towards greater agro-processing and value addition in the domestic agriculture sector.

Africa’s agribusiness sector is expected to reach $1 trillion by 2030, so there is certainly cause for optimism. Consumer demand for food in Africa is growing at an unprecedented rate. But what is fuelling this growth?

First, size matters. At a population of 1.2 billion people, Africa is currently the second most populous continent in the world, superseded only by Asia. According to United Nations projections, Africa’s population could reach 2 billion by 2030 and 2.5 billion by 2050. This means that one in five consumers globally will be African.

Second, quality counts. Sustained GDP growth rates in several countries across the continent have translated into rising incomes for some segments of the population. According to the African Development Bank’s African Economic Outlook Report, the middle-class population is expected is projected to reach 1.1 billion by 2060 which will make up 42% of the population. The average African middle-class consumer is becoming relatively more affluent, sophisticated and discerning in the food they choose to buy and eat. Concerns about price/quality trade-offs, convenience, nutritional content and food safety, amongst others, are central in their minds.

Third, concentration can be powerful. Although most growth poles are small to medium cities, megacities with populations of over 10 million inhabitants, such as Cairo, Lagos and Kinshasa, have gained increased prominence. These metropoles offer ripe opportunities for investment, as a result of the triad of high consumption, concentrated spending power, and agglomeration (i.e. lower and fixed distribution costs).

On the supply side, there is significant untapped potential. Over 60% of the world’s uncultivated arable land is in Africa.

Policy makers recognize the huge opportunities these trends present and are making concerted efforts to create and maintain an enabling business environment to attract both local and foreign investors. The African Development Bank is at the forefront of this coalition of the “ready” to transform African agriculture.

Under its Feed Africa Strategy, the Bank is supporting its regional member countries to address both demand and supply side constraints along agricultural value chains. Through initiatives like the Technologies for African Agricultural Transformation (TAAT), the Bank is boosting historically low yields in priority commodities such as rice, maize and soybeans. In Sudan for example, the TAAT-supported heat-resistant wheat variety has increased wheat self-sufficiency from 24% in 2016 to 45% in the 2018-2019 farming season.

At the same time, Special Agro-Processing Zones (SAPZs) are attracting both hard and soft infrastructure and creating value addition to increased agricultural produce. Together with partners, including Korea-Exim Bank and the European Investment Bank, the African Development Bank has invested $120 million in SAPZs in Guinea, Ethiopia and Togo, which will significantly expand local agro-processing activities along numerous agricultural value chains.

Along with these key investments in Africa’s agricultural value chains, the continent is starting to consolidate its wins. A case in point is regional integration, exemplified by the recent ratification of the African Continental Free Trade Area (AfCFTA), which has the potential to make Africa the largest free trade area in the world.

Agribusiness has already caught the eye of investors. Last year, it was one of the main attractions at the inaugural Africa Investment Forum conference, which is becoming the continent’s premier marketplace for global and pan-African business leaders, and an innovator in accelerating deals.

Also Read: Interview With Deborah Ogwuche, Founder Of Food Channel Africa

Agriculture was one of the nine sectors that attracted investor interest at the 2018 Africa Investment Forum. The sector held its own against big hitters like financial services, infrastructure, energy, and ICT. One such transaction was the Ghana Cocoa Board (COCOBOD) deal in which $600 million loan financing was mobilized from the African Development Bank and other investors to boost annual production of cocoa beans from 880,000 tons to 1.5 million tons. Within the next three years, the project is also expected to promote growth in the domestic cocoa value chain by increasing processing capacity two-fold from 220,000 tons to 450,000 tons per annum.

Africa’s expanding consumer base will undoubtedly lead to more spending on food and beverages on the continent. This should be enlightening for would-be investors in food processing and value addition ventures.

The front door to these opportunities is the Africa Investment Forum, scheduled for November 11-13 in Johannesburg, South Africa.

Mariam Yinusa and Edward Mabaya are Principal Economist and Manager, respectively, in the Agribusiness Development Division of the African Development Bank

AfDB

Press Release

Industry event co-location to boost science-based industry development

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Three industry trade shows across interconnected value chains for food, drink, water, waste and analytics

The future of South Africa’s key industry sectors – including food & drink, water, sewage and waste treatment – rest heavily on science, and never more so than now, as the COVID-19 pandemic highlights the importance of testing and analytics in assuring a compliant work environment and safe products.

Messe Muenchen South Africa, organisers of several of Africa’s major industry trade shows, have co-located food & drink technology (fdt) Africa, IFAT Africa and analytica Lab Africa to bring science and innovation closer to food & drink, water, sewage and waste treatment, for one-stop access to the interconnected value chains in these sectors.

analytica Lab Africa, food & drink technology (fdt) Africa and IFAT Africa bring to Africa the full spectrum of the science and technology laboratory technology, analysis, biotechnology and diagnostics behind consumer products and pharmaceuticals, food and beverage production, and water, sewage, refuse and recycling, water and waste management as environmental concerns and food security become a top priority around the world.

The format of the trade shows and their peripheral events are designed to spark knowledge transfer, showcase global trends and solutions to Africa’s challenges, catalyse business and facilitate introductions that support collaboration and economic growth.

Also Read: Women in Tech: Interview With Ellen Fischat, Founder Story Room and Inspiring Fifty SA Ambassador

The industry response to co-locating analytica Lab Africa with fdt Africa and IFAT Africa has been resoundingly positive, with up to 10,000 visitors and nearly 400 exhibitors from across Africa and around the world converging at the events to network, share knowledge and explore multi-sectoral business opportunities. Suzette Scheepers, Chief Executive Officer of Messe Muenchen in South Africa, said the synergies between the three sectors were immediately apparent, and gave visitors an opportunity to learn about trends, innovations and opportunities across sectors.  Together, the events occupied 17,000 square meters in four halls of the Gallagher Convention Centre.

In 2021, IFAT Africa, food & drink technology (fdt) Africa and analytica Lab Africa will be staged at the Gallagher Convention Centre from July 13 – 15.

analytica Lab Africa is the only trade fair for laboratory technology, analysis, biotechnology and diagnostics in South Africa. The show features both local and international market leaders, addressing visitors in South Africa and Sub-Saharan Africa. The first analytica Lab Africa, in 2019, featured solutions by 148 exhibitors from 15 countries, as well as a strong supporting programme including a forum and demo area with practical presentations on food safety, laboratory applications and topics such as laboratory safety.

food & drink technology (fdt) Africa  is a biennial trade fair held in Johannesburg, South Africa. The trade fair and its accompanying programme (including a high-quality exhibitor forum) is the third successful offset of Messe München’s drinktec, the world’s leading trade fair in the beverage and liquid food industry. In 2019, approximately 65 exhibitors from 13 countries presented custom solutions for the African market: from innovative developments for resource conservation to raw materials, through to processing, filling and packaging machines.

IFAT Africa is the leading trade fair for water, sewage, refuse and recycling in Southern Africa.

In 2019, the show welcomed 172 exhibitors and recorded an 83 percent increase in visitor numbers from 2017, with 3,302 visitors from across South African, Botswana, Cameroon, Cote d’Ivoire, Mozambique, Swaziland, Tanzania, Tunisia, Zambia and Zimbabwe. In 2021, the show will again feature a high-calibre forum programme addressing various trends, challenges and solutions from the water, sewage, refuse and recycling sectors, bringing together public and private sector, solution providers, academics, practitioners and decision-makers for three days of valuable knowledge sharing. Highlights of the event also include focused masterclasses hosted by the Water Institute of Southern Africa (WISA) and Institute of Waste Management of Southern Africa (IWMSA) the 3rd edition of the University Challenge, product demonstrations and interactive corner.

Issued by ITP Communication

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Black Mamba- Changing the world one chilli at a time

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Black Mamba, the HOTTEST African brand is on a mission to bring sustainable, freshly made products to the world, that taste good, look good and do good. In this exclusive chat with Claudia Castellanos who is the Co-Founder and Managing Director at Black Mamba, Claudia shares her African story with Alaba Ayinuola of Business Africa Online. Excerpts.

Black Mamba is a fair trade producer of gourmet chilli products, based in the African Kingdom of Eswatini. Founded in 2010, and manufactures a range of chilli sauces, pestos, pickles, chutneys and jams, all made with natural, fresh ingredients, and no artificial flavours or preservatives.

Currently Black Mamba exports its products to South Africa, the U.K., Germany, Norway and the US, amongst other markets. And their premises posses a FSSC22000 food safety certification, one of the strictest in the world.

(Image credit: Claudia Castellanos)

This business was started by Claudia Castellanos and her husband Joe Roques who both share their love for chillies with the passion for development of communities and sustainable farming. From the beginning, while stirring a pot of chilli sauce from the back their house, they believed that it was possible to make a high quality, distinctively delicious product with a 100% sustainable value chain that would benefit those involved and the environment.

Black Mamba works in partnership with a local NGO called Guba, whose mission is to improve the livelihood of communities in Eswatini through the use of permaculture practices. Black Mamba and Guba have a symbiotic relationship where Guba develops the farmers and their farming skills, and Black Mamba provides the marketplace for the Guba-trained farmers to sell their organically grown products.

To date, Black Mamba provides a sustainable income to 60 farmers, mostly women, that are part of this initiative. Over 1000 individuals are directly impacted as each farmer has in average 6 dependents and shares their knowledge with 11 members of their community.

Chillies (Image credit: Claudia Castellanos)

Claudia said; “We have established ourselves as a cult brand locally, and envision growing this worldwide, connecting chilli heads and ethical foodies across the world to generation of growers, providing proof that planet and people matter.”

Social Impact

  • 14 full-time employees, 12 of which are women and the main breadwinners of their households in average 5 dependents.
  • 60 farmers, of which 50 are women- in average 6 dependents and sharing knowledge with 11 members of their communities.
  • Current impact over 1000 individuals Possibility to engage up to 180 farmers with a potential impact on 5000 individuals.
  • Access to work and sustainable income.
  • Welfare programmess: Peer education on health and gender topics, mobile clinics (general checkups, breast and cervix cancer, HIV) and savings programmes for employees
  • The farmers have also learnt how to grow herbs for medicinal use, other crops to sell to their communities, healthier food and firewood.

Growers (Image credit: Claudia Castellanos)

Also Read: Chynna Morgan – helping brands create memorable experiences using sound + music with GIF Out Loud

Environmental Impact

  • Improved soil structure.
  • Diversity of ground cover crops.
  • Reduced erosion.
  • Improved use of water resources.
  • Improved biodiversity at homestead level.
  • Packaging material: glass and cardboard.
  • 90% of our waste gets recycled or composted.
(Image credit: Claudia Castellanos)

Visit Black Mamba Foods

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CEO Corner

Biography: Remi Duyile- RemiSpeaks, Career and Impact

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Remi Duyile: Author | International Speaker | Empowerment Coach | Strategic Consultant

About Remi Duyile

Dr. Remi Duyile is a Nigerian-born and accomplished author, founder of Legacy premier foundation, a business leader with expertise and extensive experience in the financial sector, government and corporate strategy and communication , an eloquent International Keynote speaker who is intentionally  in the Diaspora and abroad impacting the next generation and being a business bridge to Global Investors. She is an insightful legislative advocate and trusted community leader. Remi Duyile wears many hats, the one that she wears very proudly is being a devoted wife, and mother to three awesome children.

Dr. Duyile is an example of how faith, hard work and diligence can lead to numerous exposure and growth, she is passionate about seeing others succeed, it’s no doubt she was honored by the Governor of Maryland in the United States of America for her matchless efforts to better humanity. She has made it her life’s purpose to empower others to recognize their own strength, skills and abilities.

Early Life and Education

Dr. Remi Duyile was born and raised in  Ondo City and Lagos State, Nigeria. where she learned the thesis of discipline, hard work, commitment and staying true to oneself. With this strong foundation, she relocated from Nigeria to the United States over 30 years ago with just one purpose: to shatter the glass ceilings which she fulfilled, is still fulfilling and will continue to fulfill.

As a fervid believer in the power of education as the key to unlocking opportunities, Dr. Duyile enrolled at the University of the District of Columbia between 1982 and 1987 where she earned a bachelor’s degree in Business Administration and a Masters’ of Business Administration in Finance and Business Economy.

Career

Dr. Duyile started her corporate career at one of the nation’s most revered banking institutions, Bank of America(one of the largest financial institutions in the United States). It was here that she shattered glass ceilings when she was promoted to  Vice President of Retail, Premier, and Mortgage Banking. Dr. Duyile served in these roles managing over 600 financial portfolios of high net-worth clients for several years, until she decided that it was time to step into her true calling as a serial entrepreneur and empowering others in her community.

Impact and Philanthropy

Dr. Duyile founded Premier Mortgage Solutions (a mortgage solutions business), Image Consulting Group (an international consulting firm), and Legacy Premier Foundation (a non-profit providing mentorship and financial literacy for women and girls. She’s also the founder of RemiSpeaks. RemiSpeaks is a Coaching, Speaking and Training Platform for Management, Emerging Leaders and Entrepreneurs in quest of sustainable growth with Global Relevance. Under the umbrella of her companies, she has become an empowerment mentor, community mobilizer, certified trainer, as well as an international key note speaker.

She has spoken throughout Africa, Europe, and extensively within North America (Canada and the US) teaching financial literacy, offering entrepreneurial development, and encouraging emerging leaders to engage in the Diaspora and beyond.

Also Read: Erica Tavares: Passionate About A Greener, Better Future

Professional Memberships, Affiliations and Boards

  • Member Continental Who’s Who
  • Member, World Trade Center Institute
  • Member, National Black MBA
  • Advisory Council Member, Leadership Initiatives
  • Member, Wambia Capital
  • Advisory Board Member, Mentoring International
  • Member, National Speakers Association-DC
  • Member, Les Brown Platinum Speaker Network
  • Member : NCBW 100 of Prince George’s
  • Member: LPGA Golf Female Executive Member
  • Board Chair: Pan African Diaspora Women Association
  • Board Member, Sisters 4 Sisters Network, Inc.
  • Member, Jesus House, DC
  • Chair, Census 2010 Complete Count Committee.  2009 – 2010
  • Member, Maryland Democratic Party, Continental African Leadership Council
  • Member of  the National Coalition of  100 Black women 

Nomination and Recognition

  • Top 100 MBE award winner 2009
  • 2010 Smart CEO Award
  • Honorary Doctor of Humane Letters, 2013

Connect with her on socials: Facebook , Twitter, LinkedIn, Instagram

Websites: Remi Speaks, Legacy Premier

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