Supporting agribusiness in Africa means investing effectively in its development (Obara Capital)

(OBARA CAPITAL) – In 2013, the agro-industrial sector in Africa was valued at approximately $313 billion and employed 70% of the poorest people on the continent. The sector’s potential is so promising that international organizations are expressing their optimism that it could triple that value and create more jobs to lift millions out of poverty.

A report published by the World Bank in March 2013 confirms that such a prospect is not utopian. The document assures that African agribusiness has the potential to reach a trillion dollars by 2030. If this optimistic scenario pans out, African agricultural exports will largely dominate the world market, food self-sufficiency will be achieved, farmers on the continent will become more competitive and able to breathe new life into the economies of our states, which are already struggling with the global economic situation.

By 2025, Africa will be importing some of its food worth about $110 billion a year. Issues such as the coronavirus pandemic and climate change have left more than two-thirds of food insecure households at risk since June 2020. is rising food prices and population growth.

Therefore, the agro-industrial sector is now a priority not only for the states of the continent, but also for private entities. It is right that many strategic panels and roundtables such as « Food Insecurity: How the Private Sector Can Help Self-Sufficiency ” or ” Agribusiness Competitiveness in Africa were dedicated to the contribution of the private sector to achieve food self-sufficiency during the 8th African Leaders Forum, which was held from 13 to 14 June 2022 in Abidjan.

Among the hundreds of business leaders attending what is considered Africa’s largest private sector gathering was Bernard Ayite, Managing Director of OBARA Capital, Africa’s first hedge fund launched in 2018. African agriculture and the duty of every economic actor to support it in order to make food sovereignty a reality. ” We must change the paradigm regarding the agricultural sector, which todayfromtoday in most African countries is valuedhandlike a daughterere-sustenance. Outsidefood self-sufficiency, African states must realize their agricultural potential. To do this, they must identify their respective competitive advantages and make strategic investments, combining private investment and targeted public policies.are (with)land security, R&D, tax measures, etc.). This will allowAfrica will take part in the new global agreementostratusworld economy through agro-industrial excellence. he scored

3 agro-industry in africa is investing effectively in its development

OBARA Capital has raised funds in favor of several companies in the agricultural sector. In Benin in 2021, Société pour le Développement du Coton (SODECO), a leading African cotton gin company with 17 plants across Benin, has raised more than €250 million in three years to diversify funding sources with the support of OBARA Capital. The rigor of the company and the quality of the commercial relationships it was able to develop determined these important fundraisers. “This deal is in line withambitionOBARA Capital will provide financial resources to African champions, especially in the agricultural sector.eres on terms that allow them to compete with their international counterparts. » It hassaid the managing director of OBARA Capital following the company’s latest $80 million fundraiser.

In the same year in Ivory Coast, in particularly difficult conditions marked by the coronavirus pandemic, Kineden, an Ivorian cocoa trader, was able to enter offshore financial markets on the advice of OBARA Capital, raising a fund of 8.5 million euros from an international bank, which allowed her to fund a cocoa harvest campaign in 2021-2022.

This type of initiative and action creates value for African private investors in the agribusiness sector by offering them effective financial solutions tailored to their specifics; This contributes to the formation of a virtuous circle, which undoubtedly contributes to the food sovereignty of the continent.

Convinced of the need to invest in the agriculture and agri-food sector, African heads of state and government signed the Comprehensive African Agricultural Development Program (CAADP) a few years ago to eradicate hunger and reduce poverty through agriculture. The latter, by signing this agreement, agreed to invest at least 10% of their budgets in agriculture and increase the productivity and processing of agricultural products by at least 6%.

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