Agriculture punted as a ‘viable’ African asset class
Food independence for Africa could be supported through investment by local institutional investors in the continent’s agriculture sector, for which the investment case is very compelling with significant investment capacity, says Old Mutual Investment Group.
Director of strategic projects Craig Chambers said at a recent briefing that food imports by Africa, with over 60% of the world’s arable land, were in excess of $25-billion a year.
Compounding the situation, a 70% increase in agriculture production was needed to feed the world’s population, which is expected to be more than nine-billion in 2025, of which 25% is estimated to reside in Africa.
On the positive side, UFF Agri Asset Management joint MD Duncan Vink, who also spoke at the briefing, advised that investors with a long-term horizon were looking to increase their allocation to real assets, such as farmland, owing to economic turbulence globally, a low interest rate environment and a search for safety as well as yield.
As global food supply demands increased, Africa was the greatest opportunity for profits in agriculture, he emphasised, adding that on the continent 39-million hectares of agricultural land were suitable for irrigation. However, only 7% of this arable land was irrigated, with 3.7% in sub-Saharan Africa.
“Agriculture in Africa is compelling for inter- national investors seeking stability and high risk-adjusted returns, as a result of the availability of low-valued, premium farmland and agribusinesses on the continent, and the shortage of locally available capital,” Vink said.
The case for bolstering Africa’s agriculture sector is also supported by retailers and traders increasingly looking to secure their supply lines. Consequently, the balance of power is moving upstream to the supplier of food – the farmer.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
