AGRIBUSINESS IN AFRICA: A CONTEXTUALIZED MANUAL FOR TERTIARY INSTITUTIONS AND DEVELOPMENT

Abstract

This book is concerned with the status and potential of agribusiness in Africa. Studies by the World Bank (2013), United Nations Industrial Development Organization (UNIDO) (UNIDO, 2011), Food and Agriculture Organization (2011) demonstrate that agriculture and agribusiness have been Africa’s largest economic and fastest-growing sectors since the mid-1990s. It is estimated that Africa now earns an average of 24 per cent of its annual growth from its farmers and their commodities (FAO, 2007; 2011; World Bank 2013). The sectors accounts for 30 to 40 % of Africa’s total GDP and almost 60 % of its total export earnings (FARA, 2014). It is also estimated by the World Bank (2013) that agriculture and agribusiness together could command a US$ 1 Trillion in Africa’s regional economy by 2030. The World Bank further predicts that agriculture and agribusiness in many African countries could trigger the kind of economic transformation seen in many emerging economies in other regions of the world such as Thailand, Indonesia, Brazil, Colombia, and Ukraine. As we strive to concretize agribusiness as one of the key economic drivers and pillars of Africa’s growth, it is imperative to analyze successful case studies of agribusinesses to provide us with valuable lessons for building a sound agribusiness sector in Africa. Although Africa’s agribusiness potential is still largely unexploited, there are positive indications that Africa will play a very important role in global food and agricultural markets given that Africa has more than half of the world’s uncultivated, but agriculturally suitable land, and has scarcely utilized its extensive water resources. Moreover, Africa’s agribusiness development prospects are set to be driven by the growing population, incomes, urbanization and cities, and development of domestic markets. These factors are already resulting in the setting up of agricultural-based industries that can address the needs for employment as well as food security issues in Africa. This book therefore aims to provide a solid foundation for students and practitioners in agribusiness to understand and develop systematic solutions to complex agribusiness management challenges in both strategic planning and operational execution within the Africa business, economic and social environment.