Africa’s Food and Agricultural Industry Poised to Reach $1tn by 2030, says AfDB President

In a groundbreaking announcement at the Norman E. Borlaug Dialogue organized by the World Food Prize Foundation, the President of the Africa Development Bank (AfDB), Dr. Akinwunmi Adesina, revealed that Africa’s food and agricultural industry is projected to be worth an estimated $1 trillion by 2030.

Adesina highlighted the pivotal role of 34 African leaders who have given their endorsement to country food and agriculture delivery compacts. These compacts are instrumental in developing action-oriented plans with clear outcomes, aiming to ensure food security and unlock the full agricultural potential of the continent within a five-year timeframe.

“This development aligns perfectly with the central tenets of the Bank’s Feed Africa strategy, initiated in 2016,” Adesina emphasized, underscoring the Bank’s commitment to driving sustainable agricultural growth across the continent.

Since its inception, the Feed Africa strategy has provided vital support to over 250 million individuals, empowering them with enhanced agricultural technologies that have significantly improved their livelihoods.

Partnerships are playing a crucial role in this initiative, with pledges exceeding $70 billion in support of the food compacts. The AfDB itself is poised to contribute $10 billion over the next five years, further solidifying its commitment to the ambitious goals.

Adesina also highlighted the significance of the Dakar 2 project, which symbolizes the collective determination of African leaders to ensure the continent attains self-sufficiency in food production.

President Sahle-Work Zewde of Ethiopia, who was present at the Borlaug Dialogue, echoed the sentiment of African leaders, stating, “As African leaders, we are all committed to self-sufficiency in food production. Today, Ethiopia, for the first time in its history, is self-sufficient in wheat production and is a wheat exporter to its neighbors.”

Tackling the challenges

Despite these positive strides, challenges remain. Africa, possessing 65% of the world’s untapped arable land, still heavily relies on food imports. There is skepticism regarding the continent’s ability to achieve food self-sufficiency in the near future, given that nearly three-quarters of African governments have reduced their agricultural budgets while increasing spending on arms.

A report by humanitarian organization Oxfam International earlier this year revealed that in the past 12 months, over 20 million more people in Africa have been pushed into severe hunger, equivalent to the entire population of Botswana, Namibia, and Zimbabwe combined. Currently, a fifth of the African population (278 million) is undernourished, and 55 million children under the age of five suffer from severe malnutrition.

Fati N’Zi-Hassane, Oxfam in Africa Director, pointed out, “The hunger African people are facing today is a direct result of inadequate political choices. In a year marred with global inflation and climate disasters, African leaders should have stepped up to their responsibility.”

Chronic underinvestment in agriculture is identified as a key factor contributing to the widespread hunger experienced in 2022. Oxfam reported that 48 out of 54 African governments allocate an average of only 3.8 percent of their budgets to agriculture, with some spending as little as one percent. Additionally, nearly three-quarters of these governments have reduced their agricultural spending since 2019, failing to honor their Malabo commitments to invest at least 10% of their budget in agriculture.

As the global population is projected to reach nine billion by 2050, the urgency for Africa to enhance agricultural productivity becomes increasingly apparent in order to meet the growing demand for food. The AfDB’s ambitious plans aim to address this pressing need, positioning Africa as a leading force in the global food and agricultural industry by 2030.