Unlocking Africa’s $1 trillion food economy: The role of global aid and sustainable technology

Unlocking Africa’s $1 trillion food economy: The role of global aid and sustainable technology

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  • Global aid with strategic investments can help address systemic barriers to achieving Africa’s $1 trillion food economy by 2030.
  • Two priorities for bolstering food in Africa are deploying technology-driven solutions such as solar-powered refrigeration systems and e-procurement platforms and improving physical infrastructure for food storage and transportation.
  • Multi-stakeholder partnerships that pool resources and expertise will empower African farmers and food businesses through access to digital technologies, financial services and market platforms.

Global aid is crucial to realizing Africa’s $1 trillion food economy. It can help promote sustainable growth by targeting obstacles, enhancing resilience and unleashing the continent’s agricultural capabilities.

Global aid is also vital for nurturing trade and economic integration, which are fundamental to Africa’s agricultural development agenda. The African Development Bank forecasts a potential surge in the food and agriculture market from $280 billion annually to $1 trillion by 2030.

However, to achieve that, this aid must be effectively and efficiently directed to tackle the root causes of food insecurity on the continent: infrastructure, logistical challenges and lack of access to finance and digital technology. Therefore, strategic collaboration and investments are needed to prioritize Africa’s agricultural transformation and sustainable development objectives.

The persistent conflict in Ukraine has substantially impacted Africa, disrupting agricultural production, increasing delays and heightening food security risks. The continent is in the grip of a worsening food security crisis. Shockingly, over 20% of the continent’s population, approximately 257 million individuals, are currently suffering from undernourishment.

Approximately one-third of the world’s food production is lost or wasted annually, resulting in economic losses estimated at $1 trillion. In Sub-Saharan Africa, this figure reaches approximately 37%, equivalent to 120-170 kg per capita annually. One of the contributing factors to this crisis is the challenges in infrastructure and logistical operations.

The Food and Agriculture Organization highlights another concerning reality: a significant portion of food produced in Africa – 30-40% – is lost before it reaches consumers.

With a continuous demand and increase in Africa’s exports and imports regionally and internationally, there is a pressing need for global collaboration to prioritize food storage and transportation infrastructure in Africa to alleviate the food security crisis.

Agribusiness Agritech Food