De-risking and accelerating agribusiness investment in Africa

Africa's agricultural sector is on the brink of a transformative period, with its population expected to be the fastest-growing globally by 2050. This growth poses a significant challenge in terms of sustainable food production but also presents a monumental opportunity for innovation and investment. CNBC Africa recently had the privilege of speaking with Adesuwa Ifedi, the Senior Vice President of Africa Programs at Heifer International, to delve into the key strategies and initiatives driving agribusiness investment in Africa. The conversation centered around the critical role of scaling technology, leveraging historical wisdom, and implementing smart financing solutions to propel the agricultural sector forward. One of the primary themes that emerged from the discussion was the importance of planning for scale from the inception of an idea. Ifedi emphasized that scaling is not an afterthought but rather a core consideration that should be integrated into the initial stages of any agricultural initiative. She highlighted the pivotal role of technology in this process, asserting that without leveraging technological advancements, achieving scale would remain a significant challenge and could hinder impactful outcomes. The integration of technology, therefore, emerges as a fundamental driver for realizing sustainable agricultural growth in Africa. In terms of financing, Ifedi shed light on Heifer International's diverse funding streams aimed at ensuring long-term financial stability and addressing investment gaps in the agri-tech sector. With a legacy of over 80 years in Accotia and 50 years in Africa, Heifer International combines grant financing with commercial capital support through initiatives like Heifer Impact Capital. By embracing a blended finance model, Heifer International aims to de-risk the sector and attract a broader range of investors to drive sustainable financial models for young agri-tech businesses. This approach underscores the organization's commitment to fostering innovation and sustainability within the agricultural value chain. Policy framework also emerged as a crucial component in promoting sustainable practices in agriculture. Ifedi underscored the significance of supporting entrepreneurs as the catalysts for transforming the African agricultural landscape. By partnering with governments and advocating for policies that enable job creation and enterprise growth, Heifer International aims to facilitate an enabling environment for young innovators in the sector. Policy alignment with the goal of creating 30 million jobs in the agricultural sector by 2025 underscores the collective commitment to harnessing agriculture's potential as a driver of economic development in Africa. Climate smart agriculture was another key focus area in the conversation, with Ifedi emphasizing Africa's unique position to combine technological innovation with historical best practices to address climate change challenges. Leveraging the inherent sustainability practices of smallholder farmers across the continent, while integrating new technologies, forms a cornerstone of Heifer International's approach to promoting environmental consciousness in agricultural practices. By blending traditional knowledge with innovative solutions, the organization seeks to create a sustainable agricultural ecosystem that is resilient to climate change impacts. The discussion concluded with a reflection on the return on investment in agribusiness innovation. Ifedi highlighted the social return for Heifer International in investing in local entrepreneurs and innovators, emphasizing the long-term sustainability and impact of supporting business-driven initiatives. By empowering smallholder farmers with affordable services and products, innovators play a pivotal role in enhancing productivity and improving livelihoods in rural communities. Ultimately, the collaboration between investors, innovators, and organizations like Heifer International not only generates financial returns but also drives social impact and sustainable growth in the African agricultural sector.