Agriculture

Huge challenges present massive opportunities. Agriculture

Ivory Coast imports more rice from China than any other country. One-fifth of the world’s imported rice goes to West Africa. With Africa’s population expected to double to two-billion by 2030, these are perhaps not such surprising facts. But there was a time when many African countries were net exporters of food and the amount of land available for agriculture on the continent suggests that Africa should be able to feed itself.

A quarter of Sub-Saharan Africa’s population is undernourished and yet agriculture is often the biggest contributor to GDP. In GuineaBissau the sector accounts for over 90% of exports, nearly 85% of employment and just over 45% of GDP.

Agriculture is the second-largest contributor to the continent’s GDP, after mining and quarrying. South Africa, Egypt and Kenya have thriving agricultural exports, but most farming on the continent is on a subsistence basis. Roughly 6% (or 13-million hectares) of land is irrigated which means that the vast majority of farming relies on rain, AGCO has new African headquarters. Sector Insight

a risky undertaking. In countries such as the DRC and Tanzania, only a small fraction of arable land is farmed.

Access to appropriate storage, good transport and reliable power supplies are all constraints on African farming. High input costs for fertiliser, pesticide and seeds are additional problems. Access to good seeds has been sporadic.

The Food and Agriculture Organisation (FAO) of the United Nations has warned that if things don’t change, Africa will in 2050 be able to feed only 13% of its population.

The scale of the problem actually holds the seeds of the solution. While demand is driven by a rising population and a more demanding middle-class, this is creating a market for agri-business which is expected to reach $1-trillion by 2030. This makes agriculture an investable sector.

There is enough arable land in Africa for the problems to be solved, and for Africa to become a net exporter. Although 20% of Tanzania is suitable for farming, only 5% is currently cultivated. The World Bank calculates that Africa could farm on 202-million hectares of arable land.

Access to new technology

also gives hope that progress can be quick. Smart phones, drones, hydroponics, improved genetics and precision farming equipment could be part of renewal strategies.

Industrialisation

If Africa can scale up and make agricultural production more efficient, the ramifications for the broader economy will be profound.

Ethiopia cut poverty by 33% in just over decade, driven largely by annual agricultural growth of close to 10% (World Bank). The African Development Bank (AfDB) has flagged increased agricultural production as one of the keys to improved economic growth in countries which don’t have minerals. The 2019 African Economic Overview highlights the growth of Senegal, Rwanda and Ivory Coast and points out that increased agricultural production, if it is accompanied by an expansion of the value chain and development of processing facilities, can lead to the creation of manufacturing enterprises and ultimately play a role in industrialisation.

Countries that currently rely too heavily on fossil fuels are looking to diversify into agriculture. Nigeria is increasing the contribution that agriculture makes to GDP. By contrast, Kenya’s recent oil discoveries are a welcome break for a country very reliant on a small basket of exports, tea and flowers chief among them. About two-thirds of employment is in agriculture.

Plans and policies

There are many people and organisations looking for agricultural solutions in Africa and investors are among them.

In 2018 American agricultural company AGCO opened an African headquarters in Johannesburg. With global sales of $8.3-billion, the company already has an African parts warehouse, the AGCO Future Farm and Training Centre in Zambia and an Algerian joint venture to produce tractors.

OLAM is a Singapore-based company that is increasing its African footprint, concentrating on developing capacity all along the value chain of selected foods.

One of many non-governmental organisations working on practical solutions is the Alliance for a Green Revolution in Africa (AGRA). Started by the Rockefeller Foundation and the Bill & Melinda Gates Foundation, AGRA’s goal is to improve food security for 30-million farming households in 11 African countries by 2021.

AGRA, whose field officers are shown in the picture, promotes better seeds, new crop varieties, fosters small business and works to improve soil health.

In Kenya AGRA has highlighted the plight of potato farmers who have been short-changed by bad packaging. The crop is grown by about 800 000 smallholder farmers and contributes more than $500-million to the national economy.

The AfDB has a unit called the Agribusiness Development Division and funds the Technologies for African Agricultural Transformation (TAAT), which aims to radically transform the sector through technology. TAAT works on soil fertility management, water management and training. It also advocates for supportive seed technology policies.

Investment into agri-processing is promoted via Special AgriProcessing Zones (SAPZs). Ethiopia, Guinea and Togo have such zones which the AfDB, together with other investment banks such as the European Investment Bank and Korea-Exim Bank, has helped establish.

The African Union (AU) has set up the Comprehensive African Agricultural Development Programme. The CAADP Compact has been signed by 44 countries to allocate 10% of their national budgets to agriculture and 39 countries have formulated national agriculture and food security investment plans. ■

Alliance for a Green Revolution in Africa: www.agra.org Food and Agricultural Organisation UN: www.fao.org Comprehensive African Agricultural Development Programme: www.nepad.org/caadp International Food Policy Research Institute: www.ifpri.org Technologies for African Agricultural Transformation: www.taat-africa.org Online Resources

Africa Biomass Company

Offering wood-chipping solutions across the continent of Africa.

Since 2004, Africa Biomass Company has been at the forefront of the development of biomass processing such as wood chips, biofuels and more in Southern Africa.

Under the mentorship of Johan du Preez, the co-owner of Môreson Grondverskuivers, known for service excellence in the agricultural industry since 1924, we established ourselves as market leaders of recycling agricultural wood waste over the past 10 years.

Africa Biomass Company offers a viable, costeffective solution for our customers to recycle this unwanted woody biomass into usable forms.

Towards the end of 2008, the need and demand for the chipping of orchards increased to such an extent that the strategy of hand-fed chippers was switched to that of horizontal grinders, fed by a mechanical loader.

In collaboration with Môreson Grondverskuivers, we now offer a full range of services.

Our vision

Africa Biomass Company is your caring family, founded in faith, trading as world leaders in the recycling industry.

Our mission

To provide a worldwide service and infrastructure that is sustainable and above par, taking into account the unique requirements of each client, without deviating from our policy of innovative service and high ethical standards. Company Slogan

Our values

Human dignity; Integrity; Quality; Pro-trademark resolution; Innovation; Transparency; Individualism

Africa Biomass Company services and products

Contracting • Orchard • Windbreak recycling • River rehabilitation • Recycling of waste wood • Tree (orchard) replanting (Eastern Cape) • Mulch spreading • Land clearing and land preparation (Môreson) • Woodchip mulch and biomass sales • Bandit agency (Southern Africa) • Dezzi equipment (Western Cape) • Workshop and field services • Part sales • Manufacturing • Accredited Operator Training Facility

Orchard and windbreak recycling With the use of excavators with specialised attachments and three-wheel loggers, old orchards can be removed from root to top and fed into a horizontal grinder.

Processing of waste wood into a viable product, that if applied correctly, could have a

30% increase in water conservation as well as many other advantages.

Land clearing services Africa Biomass Company is an expert at land clearing. We have an extensive range of highly specialised wood recycling machinery that will do the job quickly and efficiently. • Tree shears which cut and stack trees of up to 550mm in diameter • Loggers to handle the timber rapidly and effectively. • Well-trained teams of chainsaw operators.

Mulch and biofuel sales Woodchip according to specification, collected in mass trailers or in bags and transported to end user, where it can be used as woochip mulch or biofuel.

Massive water savings In 2017 Africa Biomass Company was involved in many projects such as the removal of invasive eucalyptus trees in the Breede River and Berg River systems.

The removal and recycling of these alien trees, old or unwanted orchards, vineyards or windbreaks can be used as mulch which are spread in new and old orchards and vineyards. This has led to a massive water saving equal to the water usage of 50 000 households for one year.

CONTACT INFO

Physical address: 2 – 4 Joubert Street, Worcester 6850, Western Cape, South Africa Postal address: PO Box 1322, Worcester 6849 Tel: +27 23 342 1212 • Fax: 086 515 5777 Website: www.abc.co.za

Willem van der Merwe, CEO: willem@abc.co.za

Workshop and field services With an intimate understanding of the operational challenges of wood recycling in South Africa, we established state-of-the-art facilities to service, repair and rebuild wood chipping equipment of any make and size.

An equally remarkable team of field service technicians delivers repairs, maintenance and spares to your site to optimise uptime and efficiency.

Parts We have been widely commended as the company in South Africa stocking the largest range of industryrelated spare parts.

Optimal production and uptime require quality components when needed. Understanding the industry through experience sets us apart from other suppliers.

Delivering quality components on time is essential for running a successful operation. Our more than 2 500 line items is made up of quality components sourced worldwide to meet requirements of our customers and our own fleet.

Manufacturing Our legacy of innovation has been built on more than 80 000 hours of operational experience. This enabled us to develop and adapt machines for waste wood recycling in South Africa which truly adds value to the customer’s operation.

A wide range of wood chipping, grinding and spreading equipment is manufactured locally to specification, as required for South African conditions.

Calie Rabie, Western Cape Production: 072 602 4543 Fanie Fourie, Eastern Cape Production: 073 402 0655 Riaan Carstens, Bandit Agency: 079 874 8624 Quintis Wiid, Parts and Workshop: 066 475 7039