As the low level of productivity of African agriculture has great economic potential is often underestimated. Not only international capital that is Africa’s own funds are often invested in other areas of the national economy, rather than for land and agricultural inputs.

However, with the gradual global increase in food demand, agriculture seems to have become the continent of Africa on one of the most attractive opportunities, which is Africa’s share of global trade, a unique opportunity to get important, is worthy of the “green gold” . At the same time, investment in land in Africa for international investors in food safety and value-added agricultural businesses have significant opportunities.

It is estimated that in the next 40 years, world population will increase by 2.5 billion, up from the current 6.7 billion to 9.2 billion in 2050. The population growth in the global distribution is uneven; most of the population will be located in emerging economies. At the same time, these countries will be very strong momentum of economic development. Population growth and the middle class rising number of consumers, making the demand for food is more diverse and complex, this to include China and the United Arab Emirates (both net importers of food), including a variety of markets has brought enormous pressure on .

Agricultural sector in Africa needs the most powerful, should come from China. China has always been agricultural production, consumption and trade of the global drivers, consumption of wheat, rice and maize total resources, accounting for 16% of the world, 30% and 20%, and half the world’s soybeans are exported to China. China’s population is 18 million per year rate of increase, while corn, sugar, palm oil and soybeans, the per capita consumption is also growing. As income levels increase, the Chinese people on high protein diets with vegetable oil and more demand is significantly increased, these trends are likely to continue. To meat, for example, China’s current per capita meat consumption is only about half of Singapore.

Shows that the developed world’s growing need for Africa to establish, mature, transparent and reliable commercial agriculture, investment in agriculture and agricultural business in Africa and therefore has a growing appeal.

However, while the agricultural sector in Africa is facing a huge challenge.

Although China and other parts of the strong demand for agricultural products provides opportunities for Africa, but so far the capital of African agriculture is far from being achieved. Although severe shortages in food supply last century’s Zhihou 80, over the past decade in Africa’s agricultural output has been enhanced, Dan Shi Sheng Chanli Shuiping still low: grain yield per hectare Pingjunzhiyou from 300 to 500 kg, compared to the U.S. grain average yield of 2,500 kg per hectare.

Now, with the focus of industrial policy, the city continued to tilt, can be said that the whole of Africa largely ignored agriculture. The lack of investment, has become an obstacle to agricultural development throughout the continent a key factor. Compared to Asia and the Middle East, Africa, less than 17% of the arable land in cultivation.

Today, Africa is still dependent on rain-fed operation, the use of chemical fertilizers and pesticides the low level of and infrastructure, little investment and a generally poor investment climate, have exacerbated the problem of low productivity. Modernization of agriculture seem distant.

In addition, the production of a large number of food have been wasted, farming pests cause crop losses during the period from 15 to 25 percent, In addition, storage facilities and infrastructure and the lack of crops after the harvest will be reduced by 15% to 20%. Africa, many farmers can not get this type of loss can reduce the infrastructure and materials.

In the context of low productivity of African agriculture is not surprising that very few international investment. But now the trend is slowly changing. Global investment in Africa, agriculture and agricultural business, rising interest, especially in Asia.

Worldwide cross-border agreements on the use of farmland acquisition and growing, Africa is becoming the focus of this global trend. Since 2006, Africa, the host country at least 12 countries with 14 state-owned or private investment transactions to complete a number of transactions.

Foreign investment in Africa, the trend of expanding investment in land, may will speed up the agricultural infrastructure facilities in the development process,local employment Ji Hui and improve technologies and dissemination. All of these can bring transparency to the sustainability of the local community benefits. In fact, it has gone beyond the issue of food security itself. For example, there are many foreign private sector investment in biofuels.

As long as the international policy environment conducive to the direction towards sustainable development and bring significant benefits to local communities, then the agriculture and agribusiness operations in Africa in international investment opportunities to be growing.

With population growth, the global food commodity prices could continue to rise, so, Africa needs to seize this opportunity to develop their productive capacity of the agricultural sector. Agricultural production and enhance the agricultural business, the sustainability of the entire African continent’s economic development is essential, will become Africa’s economic strategy and investment in the center pillar. Similarly, the current African agriculture is undervalued international investment opportunities, which provide for the future development of important economic driver.

We have every reason to believe that the 21st century in Africa, will be the agricultural investment and the key to global food security.

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Category: World Affairs
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