Zimpapers Logo

Natasha Chamba, Business Reporter
AFRICA’s agri-business sector is projected to reach US$1 trillion value by 2030 if its vast agricultural potential is fully exploited to make agribusiness a “new oil” of the continent.

This emerged during the just ended Africa Investment Forum held in Johannesburg, South Africa and hosted by the African Development Bank (AfDB).
The meeting has been described as a success with delegates saying there was a need to invest US$45 billion per year to harness the power of agriculture and move up the value chain to create jobs and wealth.

AfDB vice president for agriculture, human and social development Mrs Jennifer Blanke said agriculture was a key priority for the bank and as a continent the US$1 trillion value can be achieved.

“Agriculture is a key priority for the African Development Bank, through our ‘feed Africa strategy’. By transforming Africa’s agriculture sector it will become the engine that drives Africa’s economic transformation through increased income, better jobs and improved nutrition. The US$1 trillion mark can be achieved by 2030 making agri-business the new oil of the continent,” she said.

“At present, only US$7 billion is invested in the sector. Investments from the private sector will create the adequate environment and enhance the emergence of locally owned agro-processing industries, capable of creating jobs and increasing incomes in rural Africa.”

Mrs Blanke said the continent could become a net exporter of agricultural commodities, replacing US$110 billion worth of imports, as well as doubling its share of market value for select processed commodities.

The bank has stressed the need for youth involvement in the sustainability of agriculture on the continent given their capacities on issues such as water management. The bank believes that agribusiness can also promote industrialisation and urban employment that will break the “productivity-gap” of development and improve the quality of life for all Africans.

Recently, AfDB launched a US$500 million credit insurance scheme aimed at supporting business development across Africa. In addition, at the beginning of the year, AfDB, through the African Development Fund, extended a US$4,1 million grant to Zimbabwe and part of it was used to reform three State-owned enterprises. — @queentauruszw