Agriculture

 

Trade of agricultural products has continued to expand, driven by high demand, particularly in emerging economies. The value of global agricultural exports nearly tripled between 2000 and 2012, while agricultural exports increased by about 60 percent in volume terms over the same period. With global demand for agricultural products expected to remain firm in future decades, global trade in agricultural products is expected to continue to increase significantly over the coming decades. As a consequence, trade will play an increasingly important role in influencing the extent and nature of food security across all regions of the globe. The challenge has therefore become one of ensuring the expansion of agricultural trade. Africa plays a major role in this regard just as Agriculture plays a major role in the development of the African continent. Africa has over 600 million hectares of uncultivated arable land with agriculture providing employment to over 52% of the workforce. Much of Africa has enjoyed sustained agricultural productivity growth since 2005 owing to several factors such as inclusion of technology as well as renewed political will by many African governments to develop the sector in their various countries. The expansion and opportunities that exists in the Agriculture sector owes to increased attention to production, utilization and export of some of the major agriculture based commodities such as rice, cocoa, cofee, cassava and many more. The most viable investment destination for agriculture includes the following;

Nigeria:

Nigeria has huge opportunities for trade and investment in agriculture. With a population of over 180 million, and arable land (% of land area) reported at 38.4% in 2014, according to the World Bank collection of development indicators, compiled from officially recognized sources.

Source: https://tradingeconomics.com/nigeria/agricultural-raw-materials-exports-percent-of-merchandise-exports-wb-data.html

With agriculture being a source of employment to about 70% of the Nigerian population, it holds huge potentials for high ROI owing to the diverse nature of agricultural practice in Nigeria and its huge contribution to the nation’s annual Gross Domestic Product (GDP).

Potential areas for investment in the Nigerian agricultural sector includes crop production, animal production, fish production, fertilizer production, farm equipment manufacturing. The wide array of crops which the nation has potentials for producing in exportable quantities remains under produced. Besides exportation of some of these agricultural produce, there is a huge gap that exists in the value chain utilization of many of these farm produce due to poor investment in the agro-processing industry. For example Nigeria produces over 60% of tomatoes in West Africa, yet it is the largest importer of tomato paste. The Federal government of Nigeria is coming up with favorable policies and focusing the policy instruments for enterprise development across successive stages of the commodity value chains for the development of crop, livestock and fisheries sub-sectors, namely input supply, production, storage, processing/utilization, marketing and consumption. Investing in various segments in the value chain is sure to rake in high return for any investor.

Some of the most viable crops with huge investment potentials (this includes the entire value chain for each commodity) include cassava, cashew nuts, cocoa, rice, sesame seed, ginger, palm kernel, tomatoes, groundnut/peanut, sorghum, millet among others.

 

Cote de Voire

Côte d’Ivoire has a large agriculture potential as 75 percent of the national territory constitutes arable agricultural land.  Agriculture accounts for 25 percent of GDP and 60 percent of export receipts.  The sector employs two-thirds of the population. Côte d’Ivoire is net food-exporter of major of cash crops grown by small farmers including: cocoa, coffee, rubber, cotton, palm oil, cashew nuts and bananas.  However, the country imports rice, wheat, corn meat and dairy products.

The main agricultural products are exported raw or unprocessed.  Currently, opportunities exist for foreign investments in processing cashew nuts, palm oil (bio-fuels), and other value-added products.  Côte d’Ivoire is one of the world’s top exporters of cashews and also the leading African producer.  Production of cashews has grown from 560,000 tons in 2014 to more than 635,000 tons in 2015. Only 10% of the production is processed. 

Côte d'Ivoire has achieved remarkable results in agricultural development. For many of its productions (including export), it is ranked at enviable global and African ranks.

Cocoa and coffee crops occupy more than 75% of land devoted to cash crops with a predominance of cocoa (56%). Côte d'Ivoire respectively held the first in the world and the 3rd African rank.

Cotton, oil palm, cashew and rubber occupy 23% of the areas.

Other cash crops (coconut, banana, etc.) occupy only 2% of the areas.

  • Coffee 

This area offers the following opportunities:

In 2002, coffee production was 300,000 tons with about 440,000 farmers’ operator 1,300,000 hectares. It has continued to experience a sharp drop in recent years, reaching its lowest level in 2008. But from 2009 coffee revives its usual level due to good weather conditions and maintenance of orchards. Production in 2009 reached 144,716 tons against 67,610 tons in 2008. Thanks to good climatic conditions and the maintenance of orchards. Production in 2009 reached 144,716 tonnes compared to 67,610 tonnes in 2008.

  • Cocoa

The annual cocoa production increased by 14.7% and amounted to 1,304,494 tons in 2009 after falling back to 12.8% in 2008. This production comes from about 600,000 farmers operator 2,500,000 hectares with an average yield of about 500 to 600 kg / ha. Cocoa cultivation system most widely used in the forest area is the extensive and small family farm with farm sizes varying between 1 and 1.5 ha.

  • Palm oil

Two types of operations:

- Industrial operations, benefiting from technical and financial resources. They belong to large agro-industrial groups. The average yield is 10 t / ha.

- The village farms, benefiting from fewer resources, account for 75% of the total area (200,000 hectares) of the Ivorian palm grove. The yield is of the order of 5 to 7t / ha.

In 2004 the production was 1,378,826 tons and 292,278 tons regimes of crude palm oil. In 2009, she was 394431.6 tons of oil representing a growth rate of 9.8%.

  • Hevea

In rubber production, there are industrial plantations owned by large private and village plantations. Average yields of dry rubber obtained on all plantations are around 1.2 t / ha village plantations and 1.7 t / ha for industrial plantations against 2 to 2.5 t / ha obtained by station research.

The total area is currently around 110,000 ha of which 53% of industrial plantations and 4.7% of village plantations. Rubber production increased by 4.1% and appears to 202,094 tons in 2009 due to the expansion of cultivated areas due to the good prices in recent years.

The trends for these two products are attributable to investments, maintenance of cultivated areas and improved cultural practices.

  • Cotton

Cotton, mainly rainfed, is grown on about 300,000 hectares mainly in the Savannah area, occupying 150,000 farmers every year.

Fiber production reached a record level of 177,000 tonnes in 1999/2000 with an average ginning of the order of 43.50% among the best ginning rate in the world.

Today, production revives the good performance by a grant from the state to producers and amounts to 140,611 tons.

  • Sugar cane

The Ivorian production of sugarcane is primarily industrial. Farms are conducted in pure culture with irrigation. 2009 production experienced a 8.8% increase and appears to 168,414 tons.

This production is the result of two agro-industrial companies.

  • Cashew

Cashew is grown in the northern half of Côte d'Ivoire. Areas sown are small usually between 0.5-4 ha. Approximately 250,000 farmers cultivate this speculation on a set of 750,000 ha. 2009 production recorded a 9% increase, amounting to 340 318T. However yields between 240 and 600 kg / ha, are still far from the performance recorded in countries such as Guinea Bissau where it reaches 1200 kg / ha. Against this outperformance is due to the non widespread use of selected high-performance materials.

  • Pineapple

The cultivation of pineapple is grown by small farmers and large agro-industrial groups. Small farmers have very little money and settled on small farms (0.5 to 1 ha).

Production in 2009 fall of 21.3% to 77 They produce 60% of exported pineapples. The average yields are 25 to 30 t / ha. Large agro-industrial groups, with substantial material and financial resources, operate generally above 50 ha area. Their high technical level allows them to reach 50 t / ha close to the current varietal potential (60 t / ha).

776 T.

  • Banana

Current production is mainly provided by large agro-industrial groups representing banana multinationals. These groups practice intensive culture with important ways: Irrigation system installation, supply of inputs (fertilizers and pesticides) and can come into compliance with the new regulations on international trade.

Production has almost doubled over the period from 1997 to 2004 from 116,000 tons / year to 229,000 tons / year on increasingly smaller areas (100.00 ha in 1977-6000 ha since 1999). In 2009, she recorded a 2.8% shrinkage and stands at 285,602 T.

Both speculations face the lack of investment, but especially to the strong competition from Latin American countries.

  • Ornamental horticultural products

The current Ivorian ornamental horticulture respect to green plants (1,200 tonnes), cut flowers (2,000 tonnes) and foliage. The sector has developed through private initiatives. There are two categories of traders: large farmers to the number of 17 720 hectares in the open and 20 hectares in shade houses and small producers in number 43, grouped together in a cooperative called FLORACI operating about 140 hectares. The annual export is estimated at 1,300 tons. Ornamental horticulture is practiced in the southern half especially in the vicinity of Abidjan.

 

The ongoing work of the master plan for industrial development (SDI program being supported by UNIDO and ADB) highlight a huge agricultural potential insufficiently exploited by the processing industry. Rate of transformation of the higher raw materials are estimated at about 20% in the cocoa sector and 8% for coffee against less than 5% in other sectors. The intensification and diversification of productive activities in this field but also in intermediate sectors (packaging, building materials, spare parts, etc.), can be a potential for development of private investments.

 

 Cameroun

In Cameroon, agriculture represents more than half of the country’s non-oil export revenues and employs almost 60 percent of the working population. Ninety percent of rural households are, in one way or another, employed in agriculture, and approximately one-third of them earn their living from export crops. This presents vast investment opportunities for investment in the agricultural sector.

The most important cash cropsâ are cocoacoffeecottonbananasrubberpalm oil and kernels, and peanuts. The main food crops are plantainscassavacornmillet, and sugarcane. Palm oil production has shown signs of strength, but the product is not marketed internationally. Cameroon bananas are sold internationally, and the sector was reorganized and privatized in 1987. Similarly, rubber output has grown in spite of Asian competition. Cameroon is among the world's largest cocoa producers; 130,000 tons of cocoa beans were produced in 2004.

The agricultural potentials in Cameroun is diverse as it is rewarding. The following data gives a general overview of the investment opportunities that exists in the Cameroonian agricultural sector.

 

Ethiopia:

Agriculture is the backbone of the Ethiopian economy. The sector contributes about 43% of the GDP and 86% of exports. The export of Ethiopia is dominated by coffee and oil seeds, which together accounted to 50.6% in 2008/09. Other principal export commodities are ‘chat’, flowers, pulses, and live animals. 

Ethiopia with 18 major agro-ecological zones and various agro-ecological sub-zones has a suitable climate for growing over 146 types of crops.

Ethiopia has suitable climate and types of soil required for the production of a variety of food crops. The major food crops grown are cereals, pulses and oil seeds. A broad range of fruits and vegetables and cut flowers are among fast-growing export agro-products. Organic coffee, cotton, tobacco, sugar cane, tea and spices are the main commercial cash crops grown in Ethiopia.

Livestock


Interestingly enough Ethiopia has the largest live stocks population in Africa. The CSA data shows in 2013 survey that Ethiopia has 53.99 million cattle, 25.5 million shops, 24.06 goats, 0.92 million camels, 50.38 million poultry, 9.01 equines and  10 million bee  colonies.
To empower the Ethiopian Meat and Dairy Industry Development Institute (EMDIDI) was established to support the Ethiopian Commercial Live Stock Sector through capacity building, through training, and consultancy, market promotion, and expansion as well as investment facilitation.


All these factors make Ethiopia one of the most promising countries to invest and expand business.
With the largest number of milking cows in Africa, Ethiopians potential for diary development is considerable. However, productivity and consumption remain low. Ethiopians currently consume 19 liters of milk per year. This is just 10 percent of Sudan’s consumption and 20% that of Kenya.

 Coffee Farming

According to The Africa Report of December 2, 2015 edition, just in July to this year Ethiopia exported 54, 000 tons of coffee worth 231.9 million compared with the $172.5 million it earned 51,000 tones over the same period last year.
By the end of 2014/15 the export will be risen to 235,000 tones generally $862 million in revenue. It is a recent memory that Ethiopia exported 190, 000 tons in 2013/14 earning $841 million.

Ethiopia produce hit a high plateau by producing and still remain 5th of the top 10 countries in the world. In 2014 alone, according to World Atlas, Ethiopia produced close to 400,000 tons or 397,500,000 kilograms and employed close to 15 million people in coffee production.

 Ethiopia is Africa’s leading producers of Coffee Arabica. The world “coffee” is said to come from Kaffa, a region where coffee has long been a wild crop. The country produces some of the best Arabica coffee in the world.

 In Ethiopia, coffee grows in almost all regional states. The suitable climatic condition varies from the semi-savanna climate of the Gambella plain (500 m.a.s.l) to the continuously wet highland forest zone of the south west (2200 m.a.s.l). Coffee grows in the Ethiopian highlands ranging from 1500 to 2100 meters above sea level. The ideal soil for the crop is slightly acidic with a PH of 4.5-6.5. It requires annual rainfall ranging from 1500-2500 mm with balanced distribution.

            Tea Farming

            Ethiopian tea is some of the best quality tea in the world. In fact, tea from Ethiopia has won acclaim for its taste and aroma. The total area covered by teal plantation in Ethiopia is 2700 ha. Ethiopia produces only black tea type. But it has a potential to grow for all types of tea. Currently, it has a capacity to produce 7,000 tons of black tea per annum. The annual tea consumption of the country is about 5,000 tones.

            The quality of tea mainly depends on climatic conditions, the type of soil upon which the plant grows and the method of processing. In Ethiopia, tea is mostly grown in the highland dense forest regions.

            Sugar cane Plantation

            In Ethiopia, sugar cane plantation started in 1954/55. Sugar has become one of the essential food consumption items in the country especially in urban areas. Though per capita sugar consumption in Ethiopia is one of the lowest in the world, the volume of consumption has been growing steadily since the establishment of the first sugar cane plantations-cum-sugar mills in the early 1950s. As a sweetening food item, sugar is used in preparing all types of drinks (coffee, tea, soft drinks, juices, etc) and foods (pastries, bread of special types, etc). White sugar is mainly exported to the neighboring countries such as Djibouti, Kenya and Yemen in quantities ranging between 30,000 to 50,000 tons per annum.

            The gap between demand and supply required the importation of substantial amount of sugar from abroad. In view of the increasing demand, the government has plans to increase its annual sugar production. Thus, new sugar projects are under construction.

            Oil Seeds Farming

            A variety of oil seeds are grown in Ethiopia. The oil seeds produced are supplied both for the local and international markets. Rapeseed, linseed, groundnut, sunflower and cotton seed serve as raw materials for the domestic edible oil industry. Some oil seeds, including peanuts and sesame, are important export crops. Favorable agro-ecological conditions exist for the production and processing of oil seeds in Humera, Metema, Jawi, Chewaqa and Mankush.

            Horticulture Farming


One of the most profitable investment sectors is horticulture. Even though the country began the flower industry in the late 90’s, Ethiopia became a formidable competitor to Kenya in the flower industry in Africa. Ethiopia, according to Ethiopian Flower Export Agency is targeting to export up to $500 million dollars by the end of 2016 calendar year. Ethiopia is the second largest flower exporter next to Kenya.   

 Commercial floriculture is still a relatively new industry in Ethiopia but it has emerged as a major non-traditional export sector. The rose industry has undergone successful development over the period 1998-2009.

 With diverse agro-climatic zones, the long growing season and the availability of water for irrigation, most fruits and vegetables can be grown well in Ethiopia. Among the major fruits, mango, banana, papaya, avocado, citrus, grape, and pineapple are the most common tropical and sub-tropical types cultivated. While pear and plum are emerging temperate fruits in the country.

 Ethiopia is now the second largest flower exporting country in Africa and the fourth in the world. It is also an ideal location for highland and low land world class flowers. The flower industry is one of the fastest growing sub sectors in the country.

 Currently, Ethiopia exports its cut flower to the Netherlands, France, Germany, Italy, Canada, Norway, Sweden, UK, Middle East, and other EU countries.

            Spices Farming

            The major spices cultivated in Ethiopia are ginger, hot pepper, fenugreek, turmeric, coriander, Cummins, cardamoms, corianders and black pepper. Currently, there are nearly 122,270 ha under spice farming. Spice production reached 244,000 tones per year. The potential areas for the cultivation of spice are Amhara and Oromiya, SNNPR and Gambella regions. The total potential for low land spice farming is estimated to be 200,000 ha.

            Cotton Farming

            Cotton is an important crop in Ethiopia. There is a huge potential for cotton cultivation in the country especially in Awash valley where large-scale cultivation under irrigation is found. Other potential areas for cotton cultivation are found in South Omo (Omorate), north western part of the country (Humera, Metema, Quara, and Belles Valley), Gambella, Tekezze valley, Dabus Valley and Wabeshebelle watershed area. Cotton production is well integrated into the rest of the economy with a large number of textile and garment factories relying on domestically produced cotton. Opportunities for the production and processing of cotton in Ethiopia are thus significant.

            Pulses Farming

            Cultivation of pulses like beans, peas, chickpeas, lentils, soybeans, etc. is also common in Ethiopia. Cultivation is carried out in both the highland and lowland areas of the country mainly by peasant farmers. Currently, the country exports a large quantity of pulses to the international market. There are also a number of factories that process pulses in the country.

            Rubber and Palm Tree Plantation

            Ethiopia has the potential for the production of rubber and palm oil.

            Rubber is grown under large scale commercial production in hot tropical and sub tropical humid climatic zones. Moderate acidic or acidic soil is suitable to grow rubber. Therefore, in south-western part of Ethiopia these agro-climatic conditions exist for the production of rubber at commercial scale.

            Palm tree is a perennial tree. It gives a higher yield of oil per unit area than any other oil seed crops. The plant can be grown in tropical and sub-tropical hot and humid climatic conditions. It can also grow in a wide range of tropical soils.

            Cultivation of palm tree can either be carried out under irrigation or using natural rainfall. Many areas in the south-western part of Ethiopia have both the required soil and climatic conditions to grow palm oil in large scale.

            Other Agricultural Products

            A huge opportunity exists for the production of jatropha, castor bean and similar agricultural products for the domestic as well as the export market.

            The estimated potential areas for the cultivation of various agricultural products in all regional states of the country are presented in the following table:

 

Type of Farming

Area (ha)

Region

1

Rice

280,000

SNNPR, Oromiya, Amhara, Benshangul Gumuz, and Somali

2

Maize

1,400,000

SNNPR, Oromiya, Amhara, Benshangul Gumuz, Gambella and Somali

3

Horticulture

763,300

SNNPR, Oromiya, Amhara and Dire Dawa

4

Coffee

426,000

SNNPR, Oromiya, Amhara and Gambella

5

Tea

150,000

SNNPR, Ooromiya, Amhara and Gambella

6

Cotton

3,000,810

Tigray, SNNPR, Oromiya, Amhara, Benshangul Gumuz, Gambella, Afar and Somali

7

Oil Crops

1,601,323

Tigray, SNNPR, Oromiya, Amhara, Benshangul Gumuz, Gambella, Afar and Somali

8

Pulse

3,274,469

Tigray, SNNPR, Oromiya, Amhara, and Benshangul Gumuz

9

Rubber

200,000

SNNPR and Gambella

10

Palm Oil

450,000

SNNPR, Oromiya and Gambella

Total

11,545,902

 

Data Source: Ministry of Agriculture

Maize 

Maize is an important crop in Ethiopia. It is grown in the mid highland areas of the country. There are huge tracts of land in all regions suitable for maize farming. Maize is mainly produced in SNNPR and Oromia regions where there are about 1.77 million hectares under cultivation. 

Wheat and Barley Farming 

Wheat and barley are mostly grown in the highlands and mid highland areas of the country mainly in Oromia (Bale and Arsi Zones) and some parts of Amhara (North Gondar and North Shewa Regions). 

Wheat and barley are the main cereal crops in the country with about 1,095,436 and 1,398,215 hectares under cultivation, respectively. The potential for the private sector in agro-processing and out growers’ scheme of development is significant. It offers excellent opportunities for production of wheat under irrigation in the Afar, Gambella, SNNPR and Somali Regions. 

Oil seeds and pulses 

A variety of oil seeds (e.g. sesame, rapeseed, linseed, groundnut, sunflower, Niger seed, cotton seed, etc.) are grown in Ethiopia. The demand for sesame has been increasing in the global market making sesame an increasingly important export commodity in Ethiopia. In 2008/09, Ethiopia exported 287,000 tons of sesame valued at 356.1 million USD, accounting for 24.6% of the total export earnings. Rapeseed, linseed, groundnut, sunflower, Niger seed and cotton seed also serve as raw materials for the domestic edible oil industry. 

Cultivation of pulses like beans, peas, chickpeas, lentils, soybeans, etc. is also common in Ethiopia. Cultivation is carried out in both the highland and lowland areas of the country mainly by peasant farmers. Currently, the country exports a large quantity of pulses to the international market. There are also a number of factories that process pulses in the country. 

Rice Farming 

Rice could suitably grow in many parts of the country. The predominant potential areas are:

  • West central highlands of Amhara Region (Fogera, Gondar Zuria, Demdia, Takusa and Achefer)

  • North West lowland areas of Amhara and Benshangul Regions (Jawi, Pawi, Metema and Dagur

  • Gambella regional state (Abodo and Etang Woredas)

  • South and South West Lowlands of SNNPRS (Beralee, Weyito, Omorate, Gura, Ferda, Menit)

  • Somali Region (Gode)

  • South Western Highlands of Oromia Region (Illubarbor, East and West Wellega, and Jimma Zones.

Spices

The major spices cultivated in Ethiopia are ginger, hot pepper, fenugreek, turmeric, cummins, cardamoms, corianders, and black pepper.  Currently, there are nearly 122,700ha under spice farming. Spice production reached 244,000 tons per year.  The potential areas for cultivation of spice are Amhara, Oromia, SNNPRS, and Gambella regions.  The potential for low land spice farming is estimated to be 2000,000ha

Livestock farming, fishery and apiculture

            Considerable opportunities exist for investments in rearing and breeding of livestock as well as in fresh water fishery development and the production of honey and beeswax.

            The livestock population of Ethiopia is first in Africa and tenth in the world. The sub-sector has large resources, which include 50.88 million cattle, 25.98 million sheep, 21.80 goats and 42.05 million poultry. Opportunities are also available in ostrich, civet cat and crocodile farming.

            Ethiopia’s potential for fishery development is limited to its freshwaters of most of the lakes that are located close to urban areas. The total fish catch potential from these waters is estimated at 40,000 tones per year. However, there is also an opportunity for investment in the construction of aquaculture to produce fresh water fish for local and international markets.

            The current annual production of honey and beeswax of the country is estimated at 43.7 thousand tones and 3,600 tones, respectively. This provides a high investment opportunity in all aspects of the development of this untapped sub-sector in the production, collection, processing and marketing of honey and beeswax. In relation to this, the demand for the bee queen is growing rapidly providing an additional opportunity for investment.

Forestry and Related Activities

            Potential activities for private investors in commercial forestry include the production and marketing of gum and incense, large-scale plantations for timber, the establishment of integrated forest-based industries such as pulp, and paper and chipboard.

Floriculture

Ethiopia is now the second largest flower exporter in Africa. It produces large budded and long stemmed

roses with vibrant colors. Many varieties are available and the main production season is from October to May. Flowers are produced in modern farms around Addis Ababa and in the Rift Valley and are exported via Bole International Airport in Addis Ababa. Temperatures are conducive to floriculture and there are long hours of sunshine – usually for more than eleven hours a day.

Water for irrigation is available in ample quantity and the well-drained soils in Ethiopia are suitable for growing horticultural products. Furthermore, a new environmental law was introduced to assess and regulate environmental impact before horticulural projects start and environmental auditing is conducted regularly to avoid pollution. Investors keen to fulfill their corporate responsibility will therefore be assured that Ethiopia promotes environmentally sustainable flower production. Roses are the most widely produced variety of flowers.

Other types of flowers currently in production include gypsophilia, hypericum, limonium, chrysanthemum, carnations, static and pot plants. The Ethiopian Highlands provide near ideal growing conditions for roses.

Vegetables, fruits, and herbs

Production of fresh vegetables, fruits, and herbs is a priority. Ethiopia produces and exports green beans, snow peas, broccoli, courgettes, okra, asparagus, cherry tomatoes, green chillis, fresh chives, parsley, rosemary, dill, basil, roccola, strawberries and table grapes. Seasons of production are compatible with many neighbouring countries and much of the land is suitable for organic certification.

The export performance of the sector had been limited to a very small volume to neighbouring countries and the European market. However, the export status is changing as more modern farms and processing enterprises are expanding. A huge effort is being carried out by the Ethiopian Horticulture Producers and Exporters Association (EHPEA) to link smallholders with the export market through an out-growers’ scheme. A project to facilitate diversification of production and smallholder farmer participation in exports is also being implemented. Farms who are already involved in export to Europe are certified for Good Agricultural Practice (GLOBALG.A.P) and their produce is handled in pack houses that meet the BRC standard.

Table 1. Agricultural Investment Land transfer facilitation service and requirements from Investors

No

Services

Required conditions and formalities from the investor

1

Provision of information about agricultural investment land potential and other relevant issues

  • investment license

  • supporting letter from the office represented and ID card/passport

2

Facilitation of filling the land request format, endorsement of   the request and provision of   feasibility study format

  • ID card/passport of the investor

  • Power of attorney( If it is from foreign country it has to authenticated by ministry of foreign affairs)

  • Memorandum of Association and Memorandum of Articles if the company is share company or plc

  • Investment license

  • Company Profile/track record/

  • Supporting letter from respective Ethiopian Embassy for foreigners and the Diaspora

  • Letter of interest to pay one year down payment.

  • Bank statement at least a         year showing a balance of 30% of the investment and audit report done by external auditor

  • letter of interest to conduct and submit Environmental Impact assessment study report

  • TIN (Tax payers Identification Number)

  • Clearance for paying the current year income tax

  • Resident and Work permit (For foreigners)

  • confirmation/application letter for the suitability of the land proposed

3

Evaluation and Approval of the business plan

  • Submit business plan prepared as per our standard format

4

Facilitation of Land transfer

 

  • Approved business plan document

  • Comment on the draft lease agreement

  • Final confirmation letter about the suitability of the land up on visiting the area as per the coordinates given on the provisional site plan

  • signed lease agreement

  • receipt of         down payment (with in 20 days after signing the agreement)

5

Provision of ownership certificates/site map

  • Signing         minute of land handing over

 

Table 2. Agricultural Investment land expansion facilitation and requirements from Investors

 

services

Required conditions and formalities from the investor

1

Additional expansion land inquiry

 

  • The investor who request extra land for the expansion , must submit written documents about the existing investment project performance: namely-

       The existing land lease agreement.

       Land lease certificate

       Business plan of the existing project.

       Development work done

       Site plan of the project

  • Site plan should include :

       over view of the cultivated land

       Quarters and lounge for the farm workers

       Storage for Agricultural inputs

       Storage for   seeds

       Incineration place for west

       The distance of the project area from water bodies

       Other essential work done on the project.

  • The investor who request extra land for expansion, must submit ,

       Any loan taken for the project from banks or   any financial institutions.

        Documents of paid loan.

       Receipt for paid land rent.

       Receipt of   Governmental payments

       Audit and   book keeping

       Lists of duty free imported machineries needed for the project and

  • About expansion land

       Business plan for the expansion project.

       The size of the requested land

 

Table 3. Agricultural Investment support services and requirements from Investors

 

services

Required conditions and formalities from the investor

1

Professional advices and information

  • Official letter of support

  • Identification card/passport for foreign nationalities;

  • Power of Attorney ( in case of agents) ;

  • Supporting letter from relevant institutes;

2

Facilitation of bank loan, tax free import of machineries and equipments; infrastructure and other agriculture investment support services

  • Official letter of request for a support;

  • Investment license and registration document;

  • Renewed trade license;

  • Land rent agreement document;

  • Letter of support from relevant regional investment office;

  • TIN; tax payment confirmation letter and audit report from relevant institute;

  • If it is a Share Company, need   Memorandum of Association;

  • Power of Attorney ( in case of agents) ;

  • Business plan document; if not to submit a letter of pledge to provide the document in 30 days’ time;

  • Copy of Identification card/passport ;

  • Resident Permit /Foreign Investors;.

  • Work Permit /Foreign Investors;

Data Source: Ethiopian Investment Guide 2014 and Ethiopia Trade and Investment and Ministry of Agriculture

 

Morocco:

Agriculture accounts for around 16.6% of national GDP and employs approximately 40% of the country’s workforce. Fishing, and forestry sector employs about 4 percent of the total workforce giving the entire sector a 44% employment share. Driven in large part by the national agricultural policy, the Green Morocco Plan (Plan Maroc Vert, PMV), the sector’s GDP contribution increased by 57% between 2008 and 2015 to reach Dh115bn (€10.5bn). The agriculture sector largely determines the growth level of the whole economy. The 2015 budget earmarked for agriculture and fisheries was €950 million, or 4.1 percent of the national budget.

Morocco’s agriculture can be divided into three major sectors: 1) modern, private, irrigated, highly capitalized, and export oriented farms producing mostly fruit and vegetables; 2) agriculture within reorganized large scale dam-irrigated perimeters producing mostly dairy, sugar crops, seeds, fruits, and vegetables mostly for the local market; 3) rain-fed agriculture with more favorable land in the northwest (growing mostly grains, olives, pulses, red meat, and dairy) and less favorable land in the south and east (growing mostly grains and non-intensive sheep production). Grains account for over 60 percent of agricultural production, and area planted to wheat has expanded dramatically over the last 20 years with increased government support. In April 2008, the Moroccan government announced its new strategy for agricultural development that aims at encouraging domestic and foreign investment in agriculture as a means to generate employment, transfer new technologies and achieve a better integration with the world economy.  Major areas for investment have been olives, citrus, grapes, dairy, exotic fruits, etc.  The new strategy also aims at providing leverage for small farmers to consolidate outputs and increase value-added production.

Many of the export oriented farms, especially fruits and vegetables, have made a great deal of investment in modern irrigation equipment, new production and marketing technologies that help them meet international standards. Morocco’s agricultural exports consist mostly of fresh citrus, fruits and vegetables mostly targeted at nearby European markets. In 2015, Morocco’s exports of agricultural products were estimated at about USD 2.4 billion.

 

Kenya

The agricultural sector is the mainstay of the Kenya’s economy. The sector directly contributes 24% of the Gross Domestic Product (GDP) and 27% of GDP indirectly through linkages with manufacturing, distribution and other service related sectors. Approximately 45% of Government revenue is derived from agriculture and the sector contributes over 75% of industrial raw materials and more than 50% of the export earnings. The sector is the largest employer in the economy, accounting for 60 per cent of the total employment. Over 80% of the population, especially living in rural areas, derive their livelihoods mainly from agricultural related activities. Due to these reasons the Government of Kenya (GoK) has continued to give agriculture a high priority as an important tool for promoting national development because of its recognition of contribution of the sector to the overall GDP of the country as shown;

The Kenyan Government recently launched a critical phase of its ambitious agriculture development strategy called the National Agriculture Investment Plan (NAIP) which is the core blueprint for revitalizing crop, livestock and fisheries production in Kenya. Agriculture employs 75 percent of Kenyans but has yet to reach its potential to boost food security, nutrition and incomes; this plan is meant to bridge that gap. The strong commitment of the Kenyan government to this policy makes agriculture an attractive investment sector within the Kenyan economy.

The major agricultural products are Sugar cane, maize, plantains and beans, as well as meat and dairy products. Other crops for export include Tea as the main earner, vegetables, coffee, fruit, cotton and flowers are also major export crops.

Production of major crops in Kenya.

The table shows the yield trends of the five most valuable crops in Kenya. Bananas, mangoes, and potatoes show a clear trend toward increasing yields over the past 15 years.

Crops in Kenya by value of production.

Yield trends for major crops in Kenya.

Available data as well as policy direction of the Kenyan government shows strong commitment to boosting the nation’s agricultural sector. This provides vast and low risk investment opportunities for the savviest investors both local and foreign and guarantees high ROI in this sector.


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