Why Africa Investment In Agriculture Has Not Been A Fast Mover

Category : Investing

Africa is a large continent made of 53 countries each with its own abundant natural resource to boast. From oil and petroleum products to metal and mineral deposits, an Africa investor has a wide array of choices to allocate his investments for. South Africa is the continents richest country based on GDP, yet only 3% of its gross domestic product came from the agricultural sector. It is just too glaring to see that most of the industries in this country are either in petroleum or mining. The agricultural investment in Africa on the other hand had been neglected.

There are several factors that were considered to have caused this slow growth in the agriculture department. It is not the fact that some African nations are experiencing drought and famine; most of these African nations though are inconvenienced by poor transportation systems. Because of this poor transportation system, around 40% of products that are produced do not reach the market. This is also the main reason why agricultural exports could not expand easily. A couple of famous farming nations are Nelspruit and Mpumalanga that have been surrounded my enough water resources and fertile soil.

The agriculture sector has been slowly moving and developing since the focus of investment in Africa is immediately directed to the oil and mining industry. Government budgets for agriculture and infrastructures have been neglected. Nonetheless, some African countries that have been popular sources of natural produce such as citrus fruits, corn, and wheat to name a few. One of the most famous citrus producer in Africa is Nelspruit which is also found in South Africa. Africa investor tactics tell us that there is still a preference in investing especially in South Africa due to its already rich and bountiful resources where establishing and expanding the business are just easy reach.

Truly, investment in Africa should now be focused on building reliable infrastructures for technology, roads, and other means of transportation to open the gate for better agricultural trade. The cost of distributing the produce is also one disadvantage found in most African countries due to the unavailability of good and affordable transportation alternatives. It is really a known fact that an African investor should weigh her options to what can really give her the best deal and perhaps a win-win situation for both parties. Investors should also focus in other growing industries such as the information and communications technology, healthcare organizations, and most especially agriculture.

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