In Eastern and Southern Africa, the agrifood sector has shown strong resilience in the face of the Covid-19 crisis, from production to distribution. The pandemic episode has nevertheless highlighted the crucial importance of food sovereignty for this region which is experiencing strong and continuous demographic growth. To achieve this objective of sovereignty, agri-food players in this part of the continent need financing, which European companies can provide them with: investments that promise to be as profitable as they are sustainable.

Several factors can explain the admirable resilience of the agri-food market in this region in the face of the Covid-19 crisis: heavy rains, which made it possible to obtain quality harvests at the end of 2019 and confirmed in 2020, planting seasons that began well before the outbreak of the health crisis, but also the new importance given to food sovereignty issues. Indeed, the pandemic has prompted several countries in the region to place agriculture - and related activities - at the center of their priorities, thus focusing on preserving the value chain of this strategic sector. This priority given to the protection of the agri-food sector is fundamental: IMF forecasts indicate that by 2050, Africa will have a population of more than 2 billion people. Faced with the exponential population growth that the continent is experiencing, the challenges are significant: food imports, a recourse massively used due to the lack of finished and locally manufactured products, must give way to investment. Indeed, the opening of the capital of agri-food companies appears to be the best solution to make them grow, and thus ensure the food sovereignty of the region. However, if the financial investment is necessary, the actors of the agribusiness of Eastern and Southern Africa are also inclined to welcome within their capital strategic partners, capable of helping them to carry out “technological leaps”. On the other side of the Mediterranean, Europe - and more particularly France - has a cooperative and private agri-food sector eager to develop on the African continent. These groups have, in addition to their financial firepower, the means to provide companies in the region with technical, marketing and commercial expertise, thus going beyond the status of simple supplier. Eastern and Southern Africa offers significant opportunities for expansion: firstly, the region has been experiencing a major digital transformation for several years, illustrated by the increasing use of advanced digital technologies (solar irrigation systems, recognition of images to help diagnose crop diseases, etc.). Additionally, the African Continental Free Trade Area (AfCFTA), which was due to come into force in May 2019, will soon connect 1.3 billion people, creating a $3.4 trillion economic bloc. Finally, the region's potential is all the greater if these encouraging financial indicators can be combined with real sustainable development objectives. Investments by European groups in the regional agri-food market can increase the volume of regional and international products in a significant and sustainable way. For example, these financial contributions can commit to promoting the production and sale of products intended for local and regional markets, without forgetting to improve commercial practices by favoring productions with a positive environmental impact. This funding must also promote local employment that is equitably distributed between men, women and young people available on the labor market, while focusing on companies that are sensitive to their ecological footprint. A buoyant market at the crossroads of profitable and sustainable, Europe and Eastern and Southern Africa would benefit from putting agribusiness at the heart of their relations. (*) Henri de Villeneuve is the founder and director of COBASA, a consulting firm specializing in investments and setting up projects in Eastern and Southern Africa, based in Johannesburg, and of SAPA, an investment vehicle in local companies present throughout the agri-food value chain.

The New Tribune SAS