Helping Africa Feed Itself

Currently, African nations are a net importer of food supplies. While worldwide production has generally increased, in parts of Africa production has remained stagnant over the past 40 years. This is despite the fact that 70% of Africans are engaged in agriculture. There remains upwards of 250 million undernourished Africans throughout the continent. Traditionally, as explained in this article from Reuters, investment in Africa in the agricultural sector has been from philanthropic organizations and developed governments.

Recently, however, for-profit private investors have begun, with the help of nonprofits, to invest in mid-sized African farms, helping to develop infrastructure as well as improved farming techniques and advances in farming technology. Specifically, the article describes the TransFarm Africa Transformation Fund (FTA), a private equity investment aiming for 15% returns from aiding mid-sized commercial farmers in processing and distribution that include small farmers in their operations. There are many other private firms involved in similar investments, all of whom are attempting to avoid the typical stigma of “land-grabbing” associated with private investment on the continent. To do this, they are collaborating with local business groups.

While foreign government and foundation investment is critical, the scale of food shortages are so great that private investment is needed. Evidently, there are many opportunities for private firms, and specifically social entrepreneurs to invest in African agriculture, with the social mission of helping the malnourished of the continent, while still generating revenue to create a sustainable business. As time goes on, and food shortages become more and more of an issue, not only in Africa, but also throughout the world, the opportunities will only increase. In terms of the future of social innovation and enterprise, this sector is poised for major growth.

Do you see issues arising with the exploitation of small farmers with increased private investment? In addition, will there be enough space for social entrepreneurs to get in on the action, where it seems that perhaps traditional businesses are also interested? What other opportunities do you see for the future of social innovation on the continent?