The Role of Private Capital in Unlocking Africa’s Agricultural Potential
AVCA - The African Private Capital Association
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AVCA - The African Private Capital Association
We champion diverse sources of private capital in Africa, through training, events, research, and advocacy.
In this interview, Jerry Parkes , Chief Executive Officer, Injaro Investments Limited , emphasises the importance of cross-sectoral collaboration to unlock Africa's agricultural potential.
Injaro Investments is a significant player in the agriculture industry. How do you see this sector evolving within the broader capital industry? What are the key opportunities and challenges ahead?
The importance of the sector cannot be overstated. By 2050, 25% of the world’s population will be African, but our agricultural output is not keeping pace with this growth. Yields are significantly lower than global averages, making it critical to develop our agricultural sector. The challenge lies in the long timelines required for development, especially given the international pressures on the sector. Collaboration between governments, donors and investors will be essential to create policies that support this development. We need an estimated US$83 billion per annum for Africa to meet its agricultural output goals, yet less than US$2 billion is currently allocated to agriculture-focused fund managers in Africa. Closing this gap is crucial to making Africa self-sufficient in food production and a net exporter, especially as we become home to a large portion of the world’s young people. Regarding Injaro’s role, we continue to invest in agriculture, including supporting smallholder farmers. However, we recognise that our efforts are just a tiny drop in the ocean. As fund managers, we must be willing to engage in bold discussions with governments, donors and large investors to develop long-lasting solutions for the sector.
What is your outlook for the industry given the current economic landscape? Are you optimistic or cautious?
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I would say that it will get worse before it gets better, but overall, I’m cautiously optimistic. New and emerging fund managers need to be creative in identifying the opportunities they can carve out amid the challenges. They’ve got to believe in themselves and the value they can bring to the market. And they’ve got to be passionate about presenting these ideas to investors. Resilience is key; with time, they’ll be able to raise capital and contribute to the sector.
As a longstanding AVCA member, what is the best aspect of your membership?
The best feature of my AVCA membership is the AVCA Platform. It encapsulates many elements I’ve long advocated for. The platform offers training, access to research, connectivity with other members and the ability to share insights on LinkedIn—all in one place. It truly embodies what AVCA aims to achieve.
Where to listen to the full discussion
Principal and Managing Director @ Holtarka | FCA Approved
3moEssential to build efficient agriculture on the continent with long term planning Jerry Parkes stability within private initiatives will probably work better than state run schemes such as in Ghana