Agri & food industry: invest in Africa

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Agri & food industry: invest in Africa

Opportunities and challenges in Ethiopia, Nigeria and Tanzania

Food demand in Africa is expected to grow in the medium term. Invest now to get your share of this rising market.

Deloitte Africa conducted a detailed agricultural sector analysis on which countries currently provide considerable agricultural investment opportunities. The specific focus is on the continent’s main food crops: wheat, cassava and maize.

Drivers and opportunities

Though most of its markets will remain complex in the medium to long term, Africa remains the only region yet to experience a “Green Revolution”. This presents vast opportunities Africa’s its territory for players in the agricultural sector.

  • Populations in Africa are rising, both in urban and in rural areas. As a result, food demand is rising fast, putting pressure on African food systems. Consequently, producers of major African food crops are expected to benefit from strong medium-term growth in food demand. 
  • Africa's middle class is growing due to improving consumer income levels. This is expected to create growth opportunities in every level of the agricultural value chain, as well as to create a demand shift towards value added, processed foods.
  • Global growth in food demand, combined with large areas of unexploited arable land provide significant opportunities for both agricultural producers and exporters.
Investment opportunities for agriculture in Africa

Investment areas

  • Wheat in Ethiopia - Rising income levels point toward increased demand for value added wheat products. This provides considerable future opportunities for processed wheat product manufacturers, as well as seed, fertiliser and pesticide producers.
  • Cassava in Nigeria - Growing popularity of cassava in many countries, combined with new technological developments creates vast opportunities to expand the Nigerian cassava industry. The most promising investment opportunities lie in the industrial production of cassava starch.
  • Maize in Tanzania - The opportunities in Tanzania’s maize value chain are both large and diverse. Both the domestic and the export market are expected to grow for locally produced white and yellow maize, as well as value-added products.

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Seize the opportunities, mitigate the risks

The full report provides more insight in the described opportunities, as well as associated risks and challenges.

Our team can help you assess the investment opportunities for your organisation. Please contact Patrick Schunck or Annelieke de Wit for more information (contact information below). For more information about the report, contact Carlton Jones (contact information below) or Hannah Edinger (+27 11 304 5463)

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