Andrew Shirley, London-based head of rural research at Knight Frank, said: “The rationale for investing in African agriculture is strong.
“The continent’s population is set to grow by 1.3-billion by the year 2050, meaning many more mouths to feed. More and more of these people will also be living in urban areas with higher disposable incomes.
“The World Bank predicts that the food and drink market in Sub-Saharan Africa will be worth $1tn by 2030, up from around $300bn in 2010.”
Food security is also driving investment into African farmland, points out Shirley. “According to an analysis of deals across the continent, investors from the Gulf states are already highly active in several countries, including Sudan.”
The report also notes that Sub-Saharan Africa has the biggest reserves of uncultivated land with agricultural potential of any world region.
Although agricultural opportunities exist across Africa, Susan Turner, MD of valuations and advisory, highlights five potential growth areas for investors in the report.
Four countries – Tanzania, Morocco, Tanzania and Zambia – offer immediate opportunities with government incentives available for investors. Zimbabwe and South Africa are “ones to watch”. “Although both countries are currently experience political and economic issues, their agricultural potential is too good to ignore over the longer term,” points out Turner.