10 Best Ways To Investing In Africa Agriculture

Investing in Africa Agriculture- Agriculture business in Africa is a robust and green business that seems untapped, and it’s a profitable business. Majority of Africans are farmers, but most are small scale farmers whose farming activity is not able to cater for the growing population in the continent. Several entrepreneurs and investors both local and foreign have spotted the agricultural sector as profitable business opportunities, and they are making a substantial amount of money from the farming business. There are several agricultural; business in Africa that you can invest in, therefore this article will provide information about the Top 10 ways to invest in Africa Agriculture.

TOP 10 WAYS INVESTING IN AFRICA AGRICULTURE 2020- STEP BY STEP GUIDE TO STARTUP

Foreign and local investors are showing great interest in the African agricultural sector and as such are investing heavily in the business. Investing in the agricultural industry requires patience. Below are several ways you can invest in Africa Agriculture.

1. Vegetable Business in Africa
2. Fish farming

Fresh Fruit Business
Poultry business
Dairy business
Sales and Supply of Agricultural equipment
Animal feed production
Fresh Juice Production
Cattle, Goat and Sheep Rearing
Snail Farming

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#1. Business Name: Vegetable Business
Startup Capital: $300
About Business:

Vegetable farming is a simple but profitable agricultural business, and one of the major farming activities carried out by farmers in Africa. Vegetables such as tomatoes, pepper, onions, leafy green, edible plant stems, marrow, etc. make a huge sale which accrued profits in African countries like Botswana, Ghana, Nigeria, Kenya, South Africa, Zambia, and Zimbabwe. It is essential to have at least some fundamental knowledge about how to plant, maintain and harvest your vegetables.

Profits: $417 daily
Pros: high customer base and does not require huge startup capital.
Cons: easily get spoilt if not sold in good time

#2. Business Name: FISH FARMING
Startup Capital:
About Business:

Fish farming is business entrepreneurs invest in Africa Agriculture, and they are earning a large chunk of income. There is high demand for fish and fish product in countries across the continent which has done the business to be profitable, and that is the opportunity entrepreneurs and investors need to grab. The most basic need for this business is to get a space and purchase fingerlings with their feeds and rare them for 4 to 6 months. These fish are sold to caterers, eateries, hotels, etc. at a very effective amount depending on fish’s weight and size.

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Profits: $12,000
Pros: fish matures quickly and sells quickly, and it is profitable.
Cons: easily get sick and chemicals used can be hazardous to the environment

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#3. Business Name: Fresh Fruit Business
Startup Capital: $9, 000
About Business:

Fresh fruit business is not too distinct from the vegetable business. This business involves the planting and selling of fruit or purchase from gross producers (large scale farmers) at a lower price and resells to consumers or companies that produce fruit drinks. There is no wastage in this business because you can also sell the by-products of the fruits, thus generating more income. If you are still looking for a means of investing in Africa Agriculture, then you shouldn’t overlook the fresh fruit business because more people show interest in totally natural products. You can either plant the fruits which take a longer time, or you can buy it from farmers and resell.

Profits: $12, 000
Pros: Year-round availability; broad customer base and little or no processing needed
Cons: cannot quickly detect an internal quality defect; get spoilt if not sold in good time and recurrence of high refrigeration cost.

#4. Business Name: Poultry Business
Startup Capital: $6000
About Business:

Poultry business is a popular business in countries across Africa. If you are vast about Africans, you’ll know they love eating meat. Poultry is a big-time business for investors or entrepreneurs interested in investing in Africa Agriculture. Against the belief that poultry meat is not too sterile due to the way they handled the meat, many entrepreneurs who have begun the business are earning big. Another aspect of poultry farming to invest in Africa Agriculture is Hatchery: The business involves starting an incubator for eggs and selling day-old chicks to poultry farmers.

Profits: $675 weekly
Pros: High yield return making it a profitable business
Cons: the high cost of feeds; mass death due to disease outbreak;

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#5. Business Name: Dairy Business
Startup Capital: Each cow ($1200-1$600); Land ($1000-$4000)
About Business:

Dairy products are an excellent business for local or foreign investors that want to invest in Africa Agriculture. A lot of people enjoy consuming dairy products because of their nutritional value and flavor. As an entrepreneur, you can take advantage of this opportunity by making cheese, cream or butter from the dairy products. You earn money when you produce dairy products and sell to large organizations. It is best to start this business with a minimum of 10 cows.

Profits: $970 daily
Pros: high-profit margin due to high demand; increase in the number of cattle
Cons: the high cost of feeding,

#6. Business Name: Sales and Supply of Agricultural equipment
Startup Capital: $14,000
About Business:

Majority of those that practice agriculture is especially farming in Africa still use the conventional tools for their farming activities. This is because the tools are expensive and not affordable to the peasant farmers. This is an opportunity for investors and entrepreneurs to grab and take advantage of. You can make this equipment (i.e., tractors, ploughs, sprayers, harvesters, and irrigation machines) available and lease them out at affordable prices or sell them to those that can afford to buy. Also, there is an increasing number of people practising agriculture in Africa due to the global recession, and many are a patronizing agricultural business.

Profits: $1400 monthly
Pros: high demand for mechanical equipment due to farmers’ adoption of mechanizes farming.
Cons: business tend to be slow once harvest season is over; high cost of maintenance

#7. Business Name: Animal Feed Production
Startup Capital: $5,571
About Business:

Animal feed production is the process of producing animal food with raw agricultural product. With the increase of animal rearing (poultry, fish farming or animal husbandry) across African countries, there is a high demand for animal feed. These feed are mixtures of different varieties of nutrients that are healthy to the animals. As an entrepreneur or investor interested in investing in Africa agriculture, if you venture into this agricultural business and produce your feed (which will lower your production cost), you will generate a lot of income by selling it to farmers. But bear in mind that this business is capital intensive.

Profits: $1000 daily
Pros: high customer base with high yield return, reduce the cost of buying feeds in case you have livestock farm or poultry.
Cons: Environmental concerns require large manpower and machines.

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#8. Business Name: Fresh Juice Production
Startup Capital: $840
About Business:

Fresh juice is highly patronized in African countries, and you can’t go wrong if you invest in this business. Fresh juice production is another fine business an entrepreneur interested in investing in Africa Agriculture. There are a high number of people buying juice drinks daily, and this business is becoming a profitable agribusiness especially if you are planting the same fruits that you are selling juice from.

Profits: $6000 monthly
Pros: it is profitable and attracts a high number of customers.
Cons: it is capital intensive (purchase of fruit and maintenance of equipment)

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#9. Business Name: Cattle, Goat and Sheep Rearing
Startup Capital: $8000
About Business:

Cattle, sheep and goat rearing are an important business in Africa primarily for meat, dairy and hide and skin purposes. Africans love eating meat particularly those of cattle, goat, and sheep. During ceremonial occasions, celebrations or festive period these animals are ordered for in large quantity. Cates, in particular, serves as everyday meat for household and many restaurants that sell food. This is an opportunity to be grabbed by entrepreneurs interested in investing in Africa agriculture. If you are the leading supplier to most abattoirs, you will be counting gross income daily. Also, starting this business is relatively affordable, and the good thing is that they do not need a lot of maintenance. You can get wool, skins, sheep milk, and mutton and manure while you can get meat, dairy, hides, and manure from cattle and goats.

Profits: profit depends on your daily sales and how much you cost each animal
Pros: the market is highly profitable in Africa due to high demand from the increasing consumers
Cons: the high cost of feeding; the outbreak of disease among the animals

#10. Business Name: Snail Farming
Startup Capital: $835
About Business:

Snail meat is delicious and also healthy for the body and as such, people are beginning not to eat beef but seek other alternative sources of meat. Snail a new business in Africa’s agribusiness and rearing it is not an easy agribusiness but snail producers are sure to earn a substantial income. If you want to practice this type of farming, the rainy season is the best period to start snail farming. Sadly, snail farming is highly neglected animal rearing business in Africa.

Profits: $10,000
Pros: feeding is not too expensive; rapid reproduction.
Cons: takes time to mature into harvest size; time demanding and requires the utmost attention

Challenges facing Agriculture in Africa in 2020

Despite golden advancement and design of modern equipment and technological breakthrough to aid agricultural practice, agriculture in Africa is still lagging. There are many factors contributing to this challenge. Majority of those that are into agricultural practice in Africa are subsistence farmers. Some of the significant challenges faced include

Lack of information: information is power, and this is one of the significant threats to the agriculture sector in Africa. Majority of farmers are small scale farmers, and they settle in remote villages in rural areas. Thus, they miss out on any information that will help improve their agricultural practice. Also, even when they can get information some improvement methods or schemes established by the government, most of them are unable to understand due to the high level of illiteracy among farmers in Africa.
Poor financial support: financial commitment or budget towards the agricultural sector is quite weak and not encouraging. It as if the sector is not given any concern at all; therefore, lack of financial support to enable farmers to grow, maintain and expand their yields remains a challenge that needs quick attention. There are several agricultural schemes including microfinance banks that are established by the government in the various African countries, but a large chunk of farmers in Africa do not have access to them.
Poor transportation: transportation is still a significant challenge in Africa as a whole. The transport system is poor, and most of the farm produce end up been wasted and bring about loss due to the poor road network. Major markets are in the urban areas, and farmers who are in rural areas find it hard transporting their farm produce to the market for sale.
Poor markets: this has become a big issue for farmers in Africa. It is expected that once crops are harvested, it’s to be taken to the market and sold. But the reverse is the case in Africa because most farmers end up storing their harvested crops to be eaten rather than sell to make money because the market is not available.
Lack of access to fertilizer: in modern agricultural practice, the use of fertilizer cannot be overlooked. Be it organic or chemical fertilizer; they are essential to farmers. Fertilizers are quite expensive and worst of all they are not available in most rural areas.

Conclusion on Top 10 Ways Investing in Africa Agriculture 2020

Those are the top ten ways of investing in Africa Agriculture. As an entrepreneur, you can exploit these available means in the Agriculture sector to start earning income and as well increase the agricultural produce in the continent. There is more that needs to be done in Africa Agriculture, but only a few persons explore these options. This article will serve as a guide for entrepreneurs or investors seeking to invest in Africa Agriculture.

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