Private equity investors can help Africa to feed itself
The private sector has a greater role to play in socioeconomic growth in Africa than ever before
The agriculture sector employs more people in Africa than any other industry and it also accounts for almost half of the continent’s GDP. Yet inefficiencies in the sector have held back production in the sub-Saharan African region, hindering the sector’s growth and stymieing the industry’s ability to achieve cross-border trade and long-term food security. This represents a fairly significant socioeconomic challenge, but it also provides private equity investors with an opportunity to support one of the continent’s biggest industries while contributing to job and wealth creation. For investors, returns from the farming industry can be enhanced through investment and implementation of modern farming techniques. In turn, successful agribusiness investments stimulate growth through the access to new markets and the development of a vertically integrated supply chain in the form of food processing, packaging and assembly, transportation, distribution and retailing. Most importantly, well...