(Bizcommunity)–Africa’s dynamic agribusinesses are rapidly developing new markets for African food products across the continent through organic growth and global partnerships. Despite coming relatively late to large-scale food production and export, the continent has a number of advantages driving its ability to boost food production and access new global markets.
The world’s population is growing even as incomes are increasing. This is changing diets, driving the demand for food globally. Africa’s population and income are also growing, with increases in the volume and variety of foods consumed tracking middle-class formation in key regions across the continent. All this is happening at a time of investment in transport and logistics infrastructure supported by legislation alive to the benefits of developing competitive trade within Africa.
This is also all happening on a continent with 60% of the world’s unused arable land.
“Africa’s agriculture sector is undergoing rapid change. Advances in the scale of aggregation and investment in processing and associated industries is promoting the large-scale accumulation and movement of African commodities like grains, cocoa, pulses, sugar and edible oils amongst others, within African countries, between African regions and even globally,” says Junaid Jadwat, executive, agribusiness sector, consumer client coverage at Standard Bank.
Family-owned agribusinesses expanding
These changes are being driven by local family-owned agribusinesses expanding their processing, warehousing and distribution capabilities into neighbouring territories, or across regions. “Local companies like Bakhresa Group, Bidco Group, Export Trading Group, Mohammed Enterprises Tanzania Limited and Willowton, with local expertise and strong distribution capabilities, are expanding across borders in their home regions and diversifying across the consumer value chain into higher value FMCG processing,” adds Jadwat.
“The resilience and growing strength of Africa’s family-owned agribusinesses point to their strategic advantage in local knowledge and established relationships,” explains Jadwat.
Standard Bank, present in 20 African markets has worked with many of these family-owned businesses, often for generations, and shares many similarities with them. Standard Bank is focused on driving growth on the African continent, which they call home. The bank has people on the ground who understand their markets, the detail of their client’s businesses as well as the conditions under which they operate. Standard Bank also understands local legislation, along with the challenges of moving goods, managing money and providing liquidity across the continent.
Most importantly, however, Standard Bank along with many of its African agribusiness clients, “can see the opportunity that the continent presents for agribusiness and agri-trade – while providing the global infrastructure to leverage this opportunity,” says Jadwat.
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