6. Production of milk powder in west Africa
West Africa Milk Company (WAMCO) currently imports 90% of its milk powder. Imports of milk powder into west Africa is estimated to be over US$2 billion per year.
Milk yields are low, quality is poor and supply is inconsistent. Processing facilities are required to process fresh milk into powder and provide the intermediate product (powder) imported by the multinationals for tin milk production.
“Nigeria alone imports over US$900 million worth of fish annually. Ghana and Senegal spend over $100,000 annually on fish imports. Almost every country in west Africa is embarking on aquaculture and incentives packages have been designed to attract investment. Investors have immediate domestic and regional markets to supply,” says the report.
CHI Limited has started with a large aquaculture project in the Nigerian city of Ibadan although this project will account for less than 2% of the country’s total demand.
8. Equipment leasing
One of the greatest challenges facing African farmers is a lack of farming equipment.
A solution is a private sector led centralised equipment hiring model – especially for tractors. Although governments have been involved in such initiatives in the past, it has in many cases not proved very successful.
“Such operations led by the private sector are expected to ensure sustainability, efficiency and free government funds for infrastructure development. Private sector agribusiness men in Nigeria are keen on investing into such a model,” says the report.
9. Market centre infrastructure investment
Whereas the larger players have the necessary infrastructure and logistics for their operations, many smaller agribusiness and food companies don’t have access to quality warehouses, cold store facilities and loading machines. This has resulted in fire outbreaks, high post-harvest losses and food safety concerns.
This situation provides an opportunity for the private sector to get involved in the modernisation of local market centres.
SPONSORED: Business opportunities in Africa
Sahara Games: Everything you need to start an online gaming business