Key Statistics in Sub-Saharan Africa
A 2020 report by the FAO revealed over 280 million Africans are malnourished, and around 94 per cent of them are in Sub-Saharan Africa. The lack of food security and access to nutrition has been aggravated by the ongoing Covid-19 pandemic, with a recent Oxfam report stating that the West African Sahel countries – Burkina Faso, Chad, Mali, Mauritania, Niger, Nigeria, and Senegal, are experiencing an exponential rise in hunger, recording a 67% increase within the last year.
This is surprising considering that the agriculture sector accounts for over 65% of the continent’s workforce, reflecting low productivity per agricultural worker and an urgent need to increase productivity in the region.
However, this cannot be achieved without adequate energy/electricity availability and access, which has proven to be a key catalyst for the scaled increase in production.
Energy Challenges
There has always been a dependence of agriculture on energy, and increased energy use is required to sufficiently increase agricultural production across cultivation, irrigation, harvesting, processing, and transportation. Due to this dependency, developing regions in the global south, like SSA, who are energy-poor are unable to reach their potential in agricultural production.
Currently, only around 2% of Africa’s total electricity consumption is allocated to the agriculture sector, compared to over 20% in Asia. This is largely due to the unavailability or lack of access to electricity sources by smallholder farmers, who are mostly in remote and rural areas. These smallholder farmers are responsible for producing over 85 per cent of all agricultural produce in the continent.
As a result of lack of access to energy access and the consequential low adoption of agricultural mechanization, only around 5% of all cultivated land in SSA is irrigated, compared to 85% in Asia. Other stages of post-harvest production like processing and storage are also significantly affected by energy poverty in SSA.
This issue is expected to persist over the next number of years as expected population explosion in the region and resulting increased demand for food leads to increased demand for electricity and higher agricultural productivity and yields. The potential negative effects of climate change and extreme weather events in the region make this issue even more pressing.
Opportunities
Given that the agriculture sector in SSA accounts for around a quarter of the GDP and two-thirds of the labour force, there is a need to leverage the potential of agriculture for economic growth in the region.
The electricity sector is facing disruption with decentralized renewable energy systems. Since most smallholder farms are located far from the grid (remote), the initial approach with grid extension is often cost-prohibitive. Decentralized energy generators can be sited on the farms, reducing the cost of electrification by avoiding expensive distribution networks. As the cost of these systems reduces, they are becoming attractive electrification technologies thereby facilitating adoption by these smallholder farms.
Solar-powered electricity sources can also be an attractive option, especially since the sub-Saharan African region is not lacking in an abundance of direct sunlight. Renewable energy sources can also enhance funding opportunities as they align with environmental sustainability agendas.
Getting Investment Advice
Every food-producing region in the world presents its own unique set of obstacles and incentives that need to be carefully reviewed when it comes to investment.
In providing independent, evidence-based advice to our clients across the world, Farrelly & Mitchell draw on our deep-rooted food and agriculture sector knowledge to empower our clients to make the right decisions.
Get a clear understanding of the factors affecting your interests through the support of our expert consultants who will help you to remove uncertainty and provide the market analysis and financial information necessary for clarity and informed decision making.
Contact [email protected] to discuss your project in more detail.
Author
Key Statistics in Sub-Saharan Africa
A 2020 report by the FAO revealed over 280 million Africans are malnourished, and around 94 per cent of them are in Sub-Saharan Africa. The lack of food security and access to nutrition has been aggravated by the ongoing Covid-19 pandemic, with a recent Oxfam report stating that the West African Sahel countries – Burkina Faso, Chad, Mali, Mauritania, Niger, Nigeria, and Senegal, are experiencing an exponential rise in hunger, recording a 67% increase within the last year.
This is surprising considering that the agriculture sector accounts for over 65% of the continent’s workforce, reflecting low productivity per agricultural worker and an urgent need to increase productivity in the region.
However, this cannot be achieved without adequate energy/electricity availability and access, which has proven to be a key catalyst for the scaled increase in production.
Energy Challenges
There has always been a dependence of agriculture on energy, and increased energy use is required to sufficiently increase agricultural production across cultivation, irrigation, harvesting, processing, and transportation. Due to this dependency, developing regions in the global south, like SSA, who are energy-poor are unable to reach their potential in agricultural production.
Currently, only around 2% of Africa’s total electricity consumption is allocated to the agriculture sector, compared to over 20% in Asia. This is largely due to the unavailability or lack of access to electricity sources by smallholder farmers, who are mostly in remote and rural areas. These smallholder farmers are responsible for producing over 85 per cent of all agricultural produce in the continent.
As a result of lack of access to energy access and the consequential low adoption of agricultural mechanization, only around 5% of all cultivated land in SSA is irrigated, compared to 85% in Asia. Other stages of post-harvest production like processing and storage are also significantly affected by energy poverty in SSA.
This issue is expected to persist over the next number of years as expected population explosion in the region and resulting increased demand for food leads to increased demand for electricity and higher agricultural productivity and yields. The potential negative effects of climate change and extreme weather events in the region make this issue even more pressing.
Opportunities
Given that the agriculture sector in SSA accounts for around a quarter of the GDP and two-thirds of the labour force, there is a need to leverage the potential of agriculture for economic growth in the region.
The electricity sector is facing disruption with decentralized renewable energy systems. Since most smallholder farms are located far from the grid (remote), the initial approach with grid extension is often cost-prohibitive. Decentralized energy generators can be sited on the farms, reducing the cost of electrification by avoiding expensive distribution networks. As the cost of these systems reduces, they are becoming attractive electrification technologies thereby facilitating adoption by these smallholder farms.
Solar-powered electricity sources can also be an attractive option, especially since the sub-Saharan African region is not lacking in an abundance of direct sunlight. Renewable energy sources can also enhance funding opportunities as they align with environmental sustainability agendas.
Getting Investment Advice
Every food-producing region in the world presents its own unique set of obstacles and incentives that need to be carefully reviewed when it comes to investment.
In providing independent, evidence-based advice to our clients across the world, Farrelly & Mitchell draw on our deep-rooted food and agriculture sector knowledge to empower our clients to make the right decisions.
Get a clear understanding of the factors affecting your interests through the support of our expert consultants who will help you to remove uncertainty and provide the market analysis and financial information necessary for clarity and informed decision making.
Contact [email protected] to discuss your project in more detail.
Author
Stephen Awuah's featured publications
Agribusiness
Coronavirus update: national and regional action needed in Ghana and West Africa
West African nations like Ghana can combat the worst effects of the coronavirus on food supplies if they act on storage and finance.
Food safety & security
Ghana during COVID-19 – Facing up to food supply chain problems
Food supply chain problems associated with the COVID-19 pandemic threaten to disrupt Ghana’s agribusiness progress
Government & multilaterals
Food technology for food security in Africa
Food and agricultural technology has an important role to play in increasing production to match the demand for food from a growing population in Africa.
Food safety & security
Sub-Saharan Africa: What pivotal role do women play in achieving food security and what impact do gender inclusive policies have?
Food insecurity and hunger remain significant global challenges exacerbated by conflict, inequality and climate change
Agribusiness
Deep dive into Ghana’s food & agribusiness country profile
Ghana was reported as the world's fastest-growing economy in 2019 by the IMF with agriculture playing a leading role in its growth. Read more.
Agribusiness
Ghana’s leading business paper features Farrelly & Mitchell’s work in training over 40 SMEs in key entrepreneur skills
Farrelly & Mitchell have provided capacity and entrepreneurial skills training to 40 small and medium-sized enterprises in Ghana to equip them with the knowledge they need to enhance their businesses.
Food safety & security
Tackling energy constraints in Sub-Saharan Africa: What are the challenges and opportunities?
Only around 2% of Africa’s total electricity consumption is allocated to the agriculture sector. Read about the practical solutions that could boost energy access in Sub-Saharan Africa paving the way for agricultural investment in the region.
Agribusiness
Growing demand for mankind’s most important source of calories
The rice market is significant as it is the world’s most important staple food, grown in over 100 countries & consumed by half the world’s population daily.
Sustainability & ESG
A sustainable green revolution for Africa
Rather than copying India’s Green Revolution, African countries should learn from those mistakes, look to raise productivity levels without harming natural resources.
Agribusiness
Farrelly & Michell’s Stephen Awuah on the prospects for food & agribusiness in Africa
Farrelly & Mitchell Africa's Stephen Awuah speaks about the company’s consultancy work in west and sub-Saharan Africa.
Sustainability & ESG
The importance of building sustainability & ESG into your food or agribusiness
Our food sustainability consultants are present in Africa, Europe, and the Middle East part of our extended team of 300 experts worldwide.
Food safety & security
Ghana can help feed Africa
Progressive Ghana's agriculture resources makes it highly sought after in terms of sector investment and it is leading by example in Africa.
Food safety & security
Growing demand for mankind’s most important source of calories
The rice market is significant as it is the world’s most important staple food, grown in over 100 countries and consumed by half the world’s population daily.
Food safety & security
How Africa can feed the world: food security and sustainable agriculture
Africa is on the path to self-sufficiency. The road ahead is uncertain, and food security issues need to be addressed. Read our in-depth report.
Food & beverage
East African food safety and security threatened by plague of locusts
Food safety and overall food security in East Africa is under threat. Conditions, accelerated by climate change has led to locusts.
Agribusiness
Coronavirus update: national and regional action needed in Ghana and West Africa
West African nations like Ghana can combat the worst effects of the coronavirus on food supplies if they act on storage and finance.
Food safety & security
Ghana during COVID-19 – Facing up to food supply chain problems
Food supply chain problems associated with the COVID-19 pandemic threaten to disrupt Ghana’s agribusiness progress
Government & multilaterals
Food technology for food security in Africa
Food and agricultural technology has an important role to play in increasing production to match the demand for food from a growing population in Africa.
Food safety & security
Sub-Saharan Africa: What pivotal role do women play in achieving food security and what impact do gender inclusive policies have?
Food insecurity and hunger remain significant global challenges exacerbated by conflict, inequality and climate change
Agribusiness
Deep dive into Ghana’s food & agribusiness country profile
Ghana was reported as the world's fastest-growing economy in 2019 by the IMF with agriculture playing a leading role in its growth. Read more.
Agribusiness
Ghana’s leading business paper features Farrelly & Mitchell’s work in training over 40 SMEs in key entrepreneur skills
Farrelly & Mitchell have provided capacity and entrepreneurial skills training to 40 small and medium-sized enterprises in Ghana to equip them with the knowledge they need to enhance their businesses.
Food safety & security
Tackling energy constraints in Sub-Saharan Africa: What are the challenges and opportunities?
Only around 2% of Africa’s total electricity consumption is allocated to the agriculture sector. Read about the practical solutions that could boost energy access in Sub-Saharan Africa paving the way for agricultural investment in the region.
Agribusiness
Growing demand for mankind’s most important source of calories
The rice market is significant as it is the world’s most important staple food, grown in over 100 countries & consumed by half the world’s population daily.
Sustainability & ESG
A sustainable green revolution for Africa
Rather than copying India’s Green Revolution, African countries should learn from those mistakes, look to raise productivity levels without harming natural resources.
Agribusiness
Farrelly & Michell’s Stephen Awuah on the prospects for food & agribusiness in Africa
Farrelly & Mitchell Africa's Stephen Awuah speaks about the company’s consultancy work in west and sub-Saharan Africa.
Sustainability & ESG
The importance of building sustainability & ESG into your food or agribusiness
Our food sustainability consultants are present in Africa, Europe, and the Middle East part of our extended team of 300 experts worldwide.
Food safety & security
Ghana can help feed Africa
Progressive Ghana's agriculture resources makes it highly sought after in terms of sector investment and it is leading by example in Africa.
Food safety & security
Growing demand for mankind’s most important source of calories
The rice market is significant as it is the world’s most important staple food, grown in over 100 countries and consumed by half the world’s population daily.
Food safety & security
How Africa can feed the world: food security and sustainable agriculture
Africa is on the path to self-sufficiency. The road ahead is uncertain, and food security issues need to be addressed. Read our in-depth report.
Food & beverage
East African food safety and security threatened by plague of locusts
Food safety and overall food security in East Africa is under threat. Conditions, accelerated by climate change has led to locusts.
Agribusiness
Coronavirus update: national and regional action needed in Ghana and West Africa
West African nations like Ghana can combat the worst effects of the coronavirus on food supplies if they act on storage and finance.
Food safety & security
Ghana during COVID-19 – Facing up to food supply chain problems
Food supply chain problems associated with the COVID-19 pandemic threaten to disrupt Ghana’s agribusiness progress
Government & multilaterals
Food technology for food security in Africa
Food and agricultural technology has an important role to play in increasing production to match the demand for food from a growing population in Africa.