Agriculture is the biggest and most important economic sector in South Saharan Africa and is estimated to account for around 14 per cent of the entire continent’s Gross Domestic Product (GDP), and as much as 50 per cent of the GDP for many countries. The number of subsistence farmers in Africa has been estimated to be around 60 per cent according to expert estimates.
Despite the lucrative financial opportunities which exist within the African agricultural sector, it is significantly underdeveloped and operates under-capacity. Most Sub-Saharan African countries are still unable to meet their own food needs and are major importers of more expensive, and often inferior, food products that have serious health and other economic outcomes.
The importation of foreign genetically modified seeds, while promising improved crop yields in the short term, has adverse consequences for the health of people and the quality of the soil.
The issue of food security is linked to the weakness of the African food industries. No nation or continent places itself at the mercy of potentially predatory outsiders, by their ability to control their food supply. Corruption also plays a role in this process, where foreign imports are preferred over domestic produce.
Given the history of the African continent and the lessons, it teaches us, the issue of food security constitutes a pressing priority. For this and many other reasons, Tehuti Investment Club has made the Sub Saharan African agricultural industry and producing high-quality food for domestic consumption its top priority for investment and business activity.
Despite the need for a strong agricultural industry and its potentially lucrative nature, which has drawn the attention of major international American consulting firms such as McKinsey and Company, among others, the total size of the Sub Saharan agricultural and food-producing sectors has been steadily declining according to the Oxford Business Group. An important reason for this decline is the lack of support for small, undercapitalized farmers, who lack the resources to fully exploit and develop their areas of activity. Unlike advanced western countries, where farmers enjoy the strong support of governments who understand the importance of a healthy agricultural sector, as can be seen in European Union countries, this does not appear to be the case in most of Africa. Developing good faith sustainable partnerships, with local African farmers, to provide necessary support is a critical element in any strategy to develop the Sub Saharan African agricultural industry.
Sources:
Winning in African agriculture | McKinsey OCP_Agriculture_Africa_Report_2021.pdf (oxfordbusinessgroup.com)
