Ag Investment Opportunities in Africa By Yohannes Assefa, J.D. Director, Stalwart Management Consultancy Africa - In Perspective Africa, an improving brand May 2000 Dec 2011March 2013 Africa - Today and Tomorrow $2.01 trillion - Africas collective GDP in 2012, higher than India; $860 billion - Africas combined consumer spending in million - the number of mobile phone subscribers in Africa, 16.5 million in % - Africas share of the worlds total amount of uncultivated, arable land 52 - the number of African cities with more than 1 million people each 20 - the number of African countries with revenues of at least $3 billion $2.6 trillion - Africas collective GDP in 2020 $1.4 trillion - Africas consumer spending by billion - number of African households with discretionary income in % - the portions of Africans living in cities by 2030 Today Tomorrow Source: Mckinsey s Africa Report; E&Y Africa report Africas Growth Story The Economists Top Growers The Economists Top Growers Source: Economist and IMF forecast Where is the growth? Sector Estimated Annual Revenue by 2020 (billion$) Growth (billion $) Consumer Resources Agricultrue Infrastructure Rising commodity prices; Improved macro-economic stability; Capital inflows from India, China, Turkey; Sizeable infrastructure development investment; Remittances as a capital provider; improvement of regional trade; emergence of organized markets Emergence of African multinationals (MTN, Dangote) Increasing African consumer spending Source: Mckinsey s Africa Report Key Sectors for Investment Agriculture Areas of Agriculture Investing Up streamMid SteamDown Stream FertilizersHorticulture Vegetable & fruit processing PesticidesCereals Cereals processing SeedCash Crops Lives stock processing EquipmentLive stockBio fuels Other processing African food market Africas food import $313 billion now Expected to grow to 1 trillion by 2030 Nigeria -Population million -GDP 405 billion -Per capital income - $2,800 (PPP) -Food import - $12 billion per year Issues, myths and realities around the hype of land grabbing A look at few countries Ethiopia Population of Ethiopia 99 million 76 million ha arable land available 13.9 million ha cultivated 3.6 million ha given to investors Mozambique Population 25.2 million 37 million ha arable land available 5.6 million ha under cultivation 1.3 million ha given to investors Tanzania Population - 45 million 44 million ha arable land available 9.1 million ha under cultivation 80,000 ha given to investors Final Words Yohannes Assefa, J.D. Have we explored the opportunities sufficiently?