Tackling Africa’s food security dilemma needs a ‘triple pull’

African countries have been urged to tap into the vast market opportunities for processed foods across the continent to eliminate hunger and meet their food security needs. With a rising population, rapid urbanization, and a growing middle class, a new report highlights that incomes are converging to create new openings for investment in the food processing industry. Dr. Ousmane Badiane, Executive Chairperson of AKADEMIYA2063 and Co-Chair of the Malabo Montpellier Panel, emphasized the opportunities for enterprises and companies to innovate and address the rising demand for higher-quality processed foods. He stressed the need for technology adoption, viable business models, and reliable supply chains to propel the industry forward. The opportunities in Africa's food processing market are immense, with projections indicating growth potentially amounting to hundreds of billions of dollars in the coming decades. Dr. Badiane underscored the importance of leveraging technology and innovation to improve efficiency and reduce costs. He called for public sector intervention to support small and medium enterprises (SMEs) in accessing new technologies, as individual firms may lack the capacity for internal research and development. In terms of business models, the focus is shifting towards traditional staple foods as urban elites in Africa seek more sanitary, better-packaged, and processed products. Entrepreneurs are targeting not only major cities but also secondary and rural towns to cater to diverse consumer demands. By developing distribution networks and enhancing product innovation, companies can tap into a young and growing market and boost profitability. Addressing the supply chain challenges is crucial for the food processing sector. Dr. Badiane highlighted the need to connect smallholder farmers with processing industries to create a seamless flow of raw materials. He emphasized that the biggest constraint lies not in the supply of raw materials but in the competitiveness and capacity of the processing sector to absorb and utilize these resources effectively. Access to capital remains a significant issue for many enterprises in the industry. While financing is essential, Dr. Badiane stressed the importance of building the technological and managerial capabilities of businesses to attract investment. Countries are exploring various financing models, including national sovereign funds and specialized agencies, to support SMEs and young entrepreneurs in the food processing sector. In conclusion, unlocking the full potential of Africa's food industry requires a 'triple pull' approach encompassing technological innovation, viable business models, and robust supply chains. By harnessing the continent's agricultural resources, embracing innovation, and fostering a conducive investment environment, Africa can transform its food processing sector into a key driver of economic growth and food security.