Did you know that 85% of the food in Africa is imported?
Africa’s agriculture and food industry face significant challenges like low productivity, limited food processing, and a lot of food waste. The continent imports about 85% of its food, costing about $43 billion annually, and is expected to reach $110 billion by 2025. Investments need to be made in post-harvest handlings like storage and processing to make the local food supply more reliable.
Did you know that 83% of needed financing of Agri-SMEs in sub-Saharan Africa is unmet?
Agri-SMEs in Sub-Saharan Africa have a yearly demand of about $90 billion, but only $15.5 billion is currently met. Agriculture is a major source of employment (60%) and contributes to 30% of GDP, yet it only receives 5% of commercial bank lending, which only benefits the top tier.
Did you know that it is 2x to 4x more effective to reduce poverty through economic growth in agrifood business than other sectors?
Research shows that reducing poverty is 2-4x more effective through agri-food business growth compared to other industries. However, building profitable agri-food businesses in developing countries takes time and effort. It often relies on public funding or grants because of difficulties in accessing finance due to perceived and real risks. We need to embrace innovation and adopt new investment strategies to succeed in purpose-driven investments.
Did you know that Africa does not need more donations?
Despite the large amounts donated by public and private actors in Africa, development aid has had many setbacks. Africa does not need more donations, which often create situations of dependence and foster corruption, but more jobs with adequate remuneration within a socially and environmentally respectful framework.
These are the reasons why AlphaSeeds‘ purpose is to contribute to developing an inclusive, sustainable, and profitable African agribusiness industry.
We provide equity funding to early-stage agribusinesses as well as practical support in developing their business models.
