By: Ousmane Badiane, Executive Chairperson of AKADEMIYA206, and Co-Chair of the Malabo Montpellier Panel
A growing class of wealthier, time-constrained, mostly urban populations in Africa are hungry for shelf-stable, ready-to-eat, ready-to-cook, or easy-to-prepare processed foods.
It presents a rare opportunity for the continent’s agrifood processors to tap into a growth market expected to triple the value of Africa’s food and beverage markets to $1 trillion by 2030 alone.
But can Africa’s craving be fully satisfied? Or might it end up leaving a bad taste in the population’s mouth when all is said and done?
The “triple pull” of factors behind this sharp rise in demand is already tangible. Firstly, Africa’s population is projected to grow to around one billion people by 2050 – eventually reaching 2.4 billion people, or one in four humans on the planet. Secondly, the continent’s urban population is estimated to increase from approximately 43 percent in 2020 to 60 percent by 2050. And thirdly, the middle class will account for 42 percent of the total population by 2060, according to recent estimates.
To meet this demand, Africa’s agrifood processors will need to improve their performance and increase their competitiveness. African governments can support the food processing sectors through policy and institutional innovations that help them take advantage of these changes.
This includes increased investments in improved technologies, infrastructure and technical and vocational training to foster innovation, including cold chain storage and transportation networks to reduce food losses and ensure food safety. This will enable businesses to invest in capabilities to create new products and business models adapted for African markets.
The private sector is rising to the challenge. For instance, a fruit juice company called Delight Uganda has had significant success in high-quality organic fruit juices, including mango, guava, and lemon, sourced from its orchards and smallholder farmers. The company’s growth was supported initially by a $10 million grant from the Ugandan government to establish a modern, fresh juice factory, and the company went on to hold a 45 per cent market share by 2021, reducing dependency on imported fruit concentrates.
Another example is the emergence of ready-to-cook and ready-to-eat millet products in Senegal, not just in supermarkets in major towns but also in shops in rural towns, boosting consumption of the superfood across the country. Millet is a staple grain in Senegal, and the government – through its broader development plan, Plan Sénégal Émergent (PSE) – is supporting small- and medium-sized businesses in processing it for domestic consumption.
The possibilities seem almost endless: from nut butter and hibiscus (bissap) juice to dried vegetables and processed meats. Unlocking this potential could drive economic growth, create jobs, and improve public health.
The food processing sector is already a major employer in many countries, accounting for nearly a third of sub-Saharan Africa’s total manufacturing employment. The sector can also be more labor-intensive than other industries, making it a crucial area for job creation.
As Africa’s youth population continues to grow, with one billion projected to be aged between 15 and 35 years by 2063, food processing offers a sustainable avenue for youth employment.
On the other hand, if this support cannot be mobilized, the growth of African food processing firms could be hindered, and it would limit their ability to successfully compete with imported processed foods.
At the same time, there is a unique opportunity to shape the emerging processing sector to enhance diets for greater nutritional benefits. This would require industry players to strive for food processing technologies that maximize nutrient availability and tap into the wealth of nutrient-dense traditional staples and tree crops across Africa.
A policy and regulatory environment that disincentivizes food processors from overusing harmful ingredients like saturated fats, trans fats, sugars and artificial sweeteners in their products would have to be part of such a strategy.
Furthermore, the processing sector is today the main bridge between smallholder farmers and food markets. A high-performing and competitive processing sector would allow smallholders and rural areas to tap into the projected trillion-dollar value of food demand for increased revenue and wealth creation. The opposite would deprive smallholders and rural communities of future growth opportunities, delaying economic transformation and improved livelihoods.
The stakes are high. If Africa can successfully implement the necessary policy innovations to navigate the challenges facing its food processing sector, the rewards would be substantial: millions of new jobs, a larger share of the fastest-growing food market in the world, and improved nutrition for its rapidly growing population.