Browsing: Agri-tech

food inflation
    • Africa failing to meet the needed sustainable agriculture practices
    • Adoption of sustainable agricultural practices remains low across the continent
    • Digital development key to agro-development in Africa

Food inflation in Africa

Food inflation in Africa is worsening by the day, with the World Bank reporting that 5 of the World’s top 10 countries with the highest real food inflation rates are African countries.

The World Bank’s May 2024 “Food Security Update” highlights sustainable agriculture importance to Africa’s agri-food systems.

“The tenets of sustainable agriculture entail reconciling environmental and social equity with economic development in order to provide for the present without compromising the ability of future generations to meet their own needs,” reads the report in part.

Analysts suggest that sustainable agriculture practices seem elusive for Africa, given that Africa holds 60 per cent of the World’s arable land. Yet, it cannot feed itself, let alone the rest of the World.

It feels very appropriate to talk about investing in disruptive innovation at a time when all of our lives have been so seriously disrupted by Covid-19.  

Many investors are drawn to the “retail” investments peddled by banks and insurers. Huge amounts of money are given to East African governments in the form of Treasury Bonds and Bills that pay between 9% and 15% per annum before withholding taxes are applied. And post-Covid what will your KES, UGX, ZAR, TZS or RFR actually be worth? And how safe do you think East African government debt will actually be? The default investment for many East Africans has traditionally been property but in a damaged economy property looks like the most illiquid of assets – and a likely victim of a global correction in prices.   

Of course there is a place for retail investments – low risk, short and fixed terms, average