Why Invest in Agriculture in Africa?
​Global demand for agriculture continues to grow rapidly due to population expansion, higher incomes, and changing diets. As more people move into the middle class - especially in emerging economies - their consumption shifts toward meat, dairy and higher-value crops, which increases the need for feed grains and agricultural inputs. Urbanisation further drives demand for processed and packaged foods, while new uses such as biofuels and bioplastics add additional pressure on crop supply. Together, these forces are pushing the agricultural sector to scale up in order to meet the needs of a larger and wealthier global population.
Population Growth Driven by Emerging Markets​
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The global population is projected to surge from 8.2 billion in 2025 to 10.2 billion by 2100 (UN DESA), with emerging markets driving the bulk of this growth. By the end of the century, over 60% of the world’s population will reside in less developed regions, creating unprecedented demand for food, water, and agricultural resources.
​​Increased Life Expectancy​​
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It is not just that there are more people today; people are living significantly longer than at any other point in history.​ ​In 1800, global life expectancy was shockingly low—averaging 29 to 35 years, even in high-income countries, while the majority of the world’s population lived just 25 to 36 years (Our World in Data, 2023). High infant mortality and infectious diseases were the primary causes of death. By the 1930s, we began to see the first sustained increases in life expectancy, thanks to advances in public health, sanitation, nutrition, and medical interventions such as vaccines. Over the following decades, life expectancy rose steadily across more regions of the world. By 2023, global life expectancy had more than doubled to 73 years, fueling massive population growth and increased demand for food.
A Tale of Two Worlds​
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The average person in OECD countries consumes roughly 801 kg of agricultural products per year, reflecting high living standards and diverse diets (FAO, 2022). Historically, OECD nations could offset domestic supply gaps by importing from other regions - but global population growth and rising demand are straining this model.
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By contrast, the average person in emerging markets consumes only 450 kg per year (FAO, 2022), leaving huge potential for growth. With emerging economies projected to account for more than 60% of global population growth by 2050 (UN DESA, 2022), the coming decades will see explosive demand for agricultural products, creating enormous opportunities for producers and investors.
Rising Meat Consumption​ Challenge
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Alongside rising food consumption and waste in emerging markets, per capita meat consumption in low and middle income countries is projected to increase by 25% over the next decade (OECD-FAO Agricultural Outlook 2025-2034).
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This dietary shift toward meat, particularly beef, is putting increasing pressure on agriculture. Producing just 1 kg of beef protein generates approximately 300 kg CO2-equivalent emissions, underscoring the signficenvironmental challenges (Wired).
How Much Food Will We Need?​
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Assuming convergence toward OECD consumption levels by 2050, the total demand for agricultural produce in emerging markets alone could more than double from 2.7 billion tonnes in 2025 to nearly 5.5 billion tonnes, contributing to a global demand increase of roughly 60–70%.
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The corresponding growth in meat production could also substantially increase greenhouse gas emissions, with meat-related CO2 emissions potentially rising by 30–35% relative to 2025 levels. This combination of all factors (population growth, increased life expentancy and dietary shifts) underscores both the economic opportunities in agricultural production and the urgent need for sustainable farming practices to mitigate climate impacts.
​​​Sustainable Development Goals in Agriculture Are Becoming Critical​​​
Adopted by all UN Member States in 2015, the 2030 Agenda lays out 17 Sustainable Development Goals (SDGs) – a global blueprint for ending poverty, reducing inequality, and protecting the planet (UN, 2015).​ ​What was once aspirational is now urgent to avert climate, health, and social crises threatening billions. Moreover, ​​​the UN and FAO have both highlighted that agriculture is the key priority in achieving the SDGs, as it addresses multiple global challenges, including hunger, poverty, climate change, and environmental degradation.
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Small consumer choices, like Meat-Free Monday or avoiding plastic straws, may feel good but barely move the needle. Real impact comes from how we produce food, not just what we eat (FAO, 2022).​ One of many examples are Norman Borlaug’s high-yield farming techniques which saved over a billion lives, curbed deforestation, and drastically increased global cereal yields. Without these advances, feeding today’s population would require nearly 1.8 billion additional hectares of farmland - more than Africa and South America combined (Borlaug, 2000).
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Agriculture impacts every SDG:
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Climate & Environment: Agriculture is a top contributor to climate change and consumes massive amounts of water resources (FAO, 2022).
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Land & Oceans: 40% of land is used for food (FAO, 2022); oceans are overfished (Marine Stewardship Council's 2025 report).
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Health & Nutrition: Millions are obese while millions go hungry; improving food systems addresses hunger, stunting, and inequality (WHO, 2023).
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Jobs & Equity: Agriculture employs over 1 billion people, mostly rural women and links gender equality, decent work, and economic growth (IFAD, 2023).
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The challenge is clear we must innovate in agriculture, empower farmers with education and tools, and produce smarter, not just more. Success in agriculture means success for people and the planet.
It Is Hard Work, But Doable​​​
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Achieving the objects just mentioned sounds like a daunting task- undoubtedly, it is. However, it is a doable task; it simply requires some out-of-the-box thinking and a tremendous amount of work.
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Examples of easy wins:​
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We provide working capital months in advance of planting. This enables farmers to prepare planting material better, resulting in higher turnout while simultaneously increasing the yield of a potatoes harvest by up to 3 tons per hectare. That translates to an additional is extra 180 tons (24 000 bags of potatoes) from a single crop cycle​.
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We purchase an additional 200 tons of fresh mangoes at the end of the season, when prices are low and transporting them to markets is not always economical. By placing the mangoes in cold storage, a mango drying facility can operate 12 months of the year instead of just 8.This creates permanent jobs and reduces food waste​.
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Strategically investing in agribusiness projects to increase profitability enables them to adopt more advanced technology. Precision farming reduces the need for fertilizer, decreases runoff into the oceans, and lowers energy demand, thereby reducing fossil fuel use. In addition, marginal land can be brought into production, easing pressure on existing farmland.
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Mispricing Of Risk Enables Us To Farm For Alpha​
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Despite its importance, agriculture remains underinvested by the financial services sector​. The lack of appetite for investing in this sector is largely due to unfamiliarity, the ​extensive knowledge and work it requires, and the perception of agriculture being too risky​. This perception results in the overpricing of risk, leading to mispricing and creating alpha opportunities.
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Those who do invest tend to focus on the 'safer' area of agriculture processing, which generally offers higher profit margins than traditional primary agriculture. However, primary agriculture is more vulnerable to event risks and volatile market dynamics. ​A single event affecting primary agriculture on a broad scale can just as easily devastate agricultural processing, as the availability of key inputs is disrupted. The fragility of such supply chains is rarely reflected in financial models, further contributing to the mispricing of risk.​
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​The solution lies in investing across the entire agricultural value chain and repackaging the risk premia into different investable formats. ​We are uniquely positioned to offer investors bespoke solutions to access opportunities throughout the agricultural value chain. ​​