Africa’s dependence on imports for its consumption is the highest in the world as a share of its GDP. The development of agribusiness is fundamental for Africa’s ability to ensure food security.
Upgrading to activities that add more value in agriculture often requires less advanced technology than in manufacturing industries. Compare the technology of producing spare parts for the automobile industry with that needed to produce tea bags.
Thirdly, agribusiness is attractive because there are ready markets for its output. Africa has vast local markets for food. Agribusiness producers can sell much of their output in local markets. Yet another reason to pay more attention to Africa’s agribusiness is that it is at the forefront of environmental challenges and global warming.
Drastic changes in rainfall and weather patterns change what can grow where, and increase the importance of efficiency of land use. It is important to understand the consequences of these changes so that they can be managed effectively.
Source : Africa
