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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 At a population of 1.2 billion people, Africa is currently the second most populous continent in the world, superseded only by Asia.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

Journey Wellness, an AI-Enabled, Personalised Healthcare Platform Launches in South Africa

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Journey Wellness Co-Founders, Dr. Jacques Ludik and Laura Wayburne (Image: Nomsa Mdhluli)

Journey Wellness, an AI-Enabled, Personalised Healthcare Platform set to Revolutionize Wellness & Healthcare in South Africa. The Platform will transform business employee benefits and medical schemes’ approach to offering wellness for employees and medical aid members.

A revolutionary new approach to offering Ultra-Personalised, Artificial Intelligence-Enabled Healthcare from tech-trendsetting company Cortex Logic is set to transform the way medical aid schemes, consumers and corporates offering employee benefits as part of their EAP (Employee Assistance Programmes) view their current healthcare offering.

The Journey Wellness platform is perfectly timed to coincide with the current global shift in Healthcare, as the focus moves from a disease-management model to one that encourages optimum health and disease-avoidance, targeting younger as well as existing members with a holistic, pro-active offering.

Corporates and medical schemes are realising that they need to offer their employees and members wellness and EAP benefits that move beyond expensive, reactive, chemical care to cost-effective, proactive preventative primary care.

“Globally, an ever-increasing portion of healthcare spend and focus is shifting to promote wellness and wellbeing, rather than responding to illness,” says Lara Wayburne, a respected Healthcare Actuary consulting to Cortex Logic and part of the development team of the Journey Wellness Platform.

“Healthcare analysts predict that over the coming decade the focus on wellness and wellbeing can reduce overall healthcare costs by as much as 30%.”

“Journey Wellness enables that future by empowering and engaging consumers to better understand the drivers that impact their health and therefore be more actively involved in managing their own health. By doing so, the Journey Wellness ecosystem encourages positive health seeking behaviour, promoting better physical and mental health,” says Wayburne.

The driving force behind Journey Wellness, Dr Jacques Ludik, Founder and CEO of Cortex Logic, who has also recently written a book called ‘Democratizing Artificial Intelligence to Benefit Everyone’, says that the Journey Wellness platform will provide more healthcare, to more people, faster.

“Essentially, Journey is a cost-effective, pro-active, personalised and engaged AI health companion that will improve health outcomes for everyone involved – the medical scheme provider, employers, employees, healthcare providers and ultimately the end-user consumer who will benefit from personalised, proactive healthcare with the added benefits of cost savings all-round,” says Dr Ludik.

Journey Wellness offers a number of benefits for Medical Schemes, Corporates and End-Users:

Employer Groups and Medical Scheme providers will benefit from the cost savings inherent in moving from expensive, reactive, chemical care to cost-effective, proactive preventative primary care for their members and employees. This will result in increased productivity, increased employee engagement, reduced absenteeism and cost-savings to all involved.

Healthcare Providers will benefit from having a 360-degree view of their patients that will improve wellness proactively without costly chemical intervention, usually at the reactive stage and will also empower patients with continuous self-care.

And, Consumers will benefit from a Holistic Wellness Solution and the reduced need for expensive healthcare options, improved wellbeing, rewards for engagement and ultimately having a personalised wellness coach on hand at all times to help them understand their health status and associated risks and better manage their health and improve quality of life.

“Overall, it’s a win-win scenario in which technology, data and analytics foster a collaborative and progressive healthcare environment, creating an ecosystem for improved wellbeing one step at a time that benefits everyone,” says Wayburne.

Journey Wellness has also made an exciting announcement around making the Platform’s Mental Health Module available for free to users from 1 September 2021.

“We realise that the current state of affairs globally, and in South Africa in particular, with pandemic lockdowns and economic uncertainty foremost on our minds, places an enormous amount of pressure on people. So, we’re offering free access to our Mental Health Module to users, where they can access an AI-enabled mental health companion 24/7,” says Dr Ludik.

The Journey Wellness Demo Platform for Corporate Employers and Medical Schemes is available at www.journeywellness.co.za, and for Consumers, the User App is available as a free download for Android and iOS devices at Google Play and App Store. Medical schemes and Employers looking to offer Journey Wellness to their members can interact directly with Journey Wellness by requesting a demo via the website.

 

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Investment

Chaka secures $1.5M pre-seed round to power digital investments and wealth management opportunities across Africa

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Chaka CEO, Tosin Osibodu at a press briefing (Image & Press Release: Chaka)

Chaka is thrilled to announce its $1.5M pre-seed funding round led by Breyer Capital, a global venture firm focused on catalyzing growth in high-impact companies like Spotify, Facebook, and now, Chaka. Other participants in the round are 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures.

Chaka is a technology solutions company on a mission to enable every business and person in Africa to access borderless digital investment and wealth management opportunities. The team combines investment expertise and best-in-class technology to provide reliable digital Investing, trading and wealth management solutions that are easy-to-use and easy-to-integrate.

Their mission is to enable digital border-less investing for African businesses and individuals. They’re powering the digital investment landscape in Africa through partnerships with asset managers, financial technology firms, and regulators with whom we have a shared mission. We achieve this by providing trading solutions that are easy to use and easy to integrate.

With this capital, they will focus on the goals to build a roster of formidable partners and accelerate expansion to other markets within West Africa. This investment also enables them to hire top talent and integrate more advanced functionalities into our investment and wealth management solutions.

Jim Breyer, CEO of Breyer Capital, shared his view on this investment and it illustrates their shared vision: “We are proud to align ourselves with a company that is leveling the investment playing field for Nigerians (and Africans at large). We’re confident in the value Chaka provides through its digital tools, and we look forward to playing our part in supporting Tosin, Bo, Olaolu, and the Chaka team.”

This is a significant milestone for Chaka and could not have come this far without their users, partners, early investors, and a talented, achieving team of Champions.

They see digital investments as a means to boost economic transformation in Africa, and we’re very keen to bring this vision to life.

 

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Manufacturing

Emmanuel Penneh set to lead the Ghanaian team that will re-assemble the first Nissan Navara made in Ghana

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Emmanuel Penneh (Image: Lusawovana Pius- edelman) 

Emmanuel Penneh arrived back in Accra this week, ready to start the next phase of a journey that’s taken three years so far and still has an intensive eight months to run. On Thursday 3 June 2021, the married 44-year-old father of three graduated with his team of 11 Ghanaians from an intense eight-week course at Nissan South Africa’s Rosslyn manufacturing plant outside Pretoria. That was just the first step for them. Now the hard work begins, getting Ghana’s brand-new Nissan assembly plant in Tema, outside Accra, ready to begin re-assembling the first ever Nissan Navaras to be built in Africa early in the New Year.

The graduation is a critical milestone in a process that began back in 2018 with the signing of the landmark Memorandum of Understanding between Nissan and the Government of Ghana, followed by the drafting and promulgation of Ghana’s automotive development policy the following year and then the appointment of Japan Motors Trading Company (JMTC), as Nissan’s preferred partner last year to ensure that the new facility will be 100% Ghana owned and run.

Penneh is up for the challenge. Speaking at the special graduation ceremony held at the Rosslyn, SKD plant, he said he and his team were proud and honoured, excited and delighted. “This is a historic evolution for Nissan Ghana, Nissan South Africa and Nissan worldwide. This is the plant where the Nissan Navara is being made for the first time in Africa, by Africans for Africa, now we are going home to re-assemble the first Navara made in Ghana for Ghana by Ghanaians!”

Penneh will be the plant manager. It’s a feather in the cap for the 10-year JMTC veteran. Before being approached to lead the team, Penneh was service co-ordinator for the group’s aftersales operations, overseeing five workshops across Ghana. He’s been in the automotive industry for 14 years, with four years at Man Truck Ghana before he joined JMTC.

“It’s exciting,” he says, “it gives a new dimension to my career. After concentrating on the after sales aspect, I’m now coming into the industry that actually builds the vehicles.”

The eight-week training that the team underwent in South Africa had been gruelling, he said, they had no idea what to expect. “It was challenging coming fresh into this industry and discovering so many processes and rules and mastering them, but it’s been exciting.”

He’s exceptionally proud of the team he led to South Africa and the way they’ve conducted themselves. “This (the creation of a Nissan assembly plant in Ghana) is going to be a game changer for ourselves, but also for our country, creating jobs, upskilling people and creating opportunities for local brand ownership.”

 

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