Africa could be the breadbasket of the world, here’s how

Africa has long been touted as the next frontier for agricultural development, with its vast tracts of arable land and a growing population in need of food security. In a recent interview with CNBC Africa, Svein Tore Holsether, CEO of Yara International, discussed the immense potential that the continent holds in the food business. Holsether believes that Africa could become the breadbasket of the world, drastically reducing the continent's $1450 billion annual food import bill through increased agricultural productivity. Yara International, a global leader in crop nutrition solutions, has been operating in Africa since 1963. With a focus on soil health and optimizing crop nutrition, the company aims to help African farmers multiply their yields and create sustainable agricultural practices. Holsether emphasized the importance of creating scale in the agricultural sector to drive economic growth and employment opportunities across the continent. One of the key challenges facing the agricultural industry in Africa is the need for a more holistic approach to the value chain. Yara International has been working on innovative models that integrate inputs, production, and market access to create a sustainable ecosystem for farmers. Through partnerships with organizations like the World Food Programme, the company has been able to reach over 130,000 farmers and aims to expand its impact to 1.5 million farmers by 2022. Despite the clear benefits and opportunities present in the African food business, Holsether highlighted the importance of long-term predictability and supportive policies to attract more investments. Yara International has already invested over $100 million in Africa but envisions a deeper integration into the continent's agricultural sector. With investments in countries like South Africa, Tanzania, Kenya, and Ghana, the company is actively seeking out new business opportunities and partnerships to drive further growth. In addition to its focus on Africa, Yara International recently made significant investments in India, acquiring Tata Chemical's fertilizer business. This move signifies the company's commitment to expanding its global footprint and leveraging strategic partnerships to drive growth. Holsether also discussed Yara International's foray into mining in Ethiopia, highlighting the company's diversified investment approach to capture opportunities across different sectors. As Yara International continues to explore new investment opportunities in Africa and beyond, the company remains focused on driving sustainable agriculture practices and supporting farmers in achieving higher yields and economic prosperity. With the right strategies and partnerships in place, Africa's potential to become the breadbasket of the world is within reach, paving the way for a more food-secure and economically vibrant continent.