{"id":65441,"date":"2019-04-10T11:25:42","date_gmt":"2019-04-10T11:25:42","guid":{"rendered":"https:\/\/finca.org\/why-we-invested-good-nature-agro"},"modified":"2019-04-10T11:25:42","modified_gmt":"2019-04-10T11:25:42","slug":"why-we-invested-good-nature-agro","status":"publish","type":"post","link":"https:\/\/finca.org\/en-ca\/why-we-invested-good-nature-agro","title":{"rendered":"Why We Invested: Good Nature Agro"},"content":{"rendered":"

If you have your finger on the pulse of agriculture in Africa, you know that it needs a major dose of fresh vigor. Perennially starved of resources and investments, the sector is stunted in its output and shunned by the labor force best suited to its needs. Crop yields are the lowest in the world, with main cereal yields stagnating at less than 25 percent of potential<\/a> over the last half a century. Africa\u2019s total food output represents just 10 percent of global production, even though the continent boasts a quarter<\/a> of the world\u2019s arable land. Unable to meet its own demand, Africa spends $35 billion<\/a> on food imports annually. Bleaker still, young people \u2014 the most productive segment of the region\u2019s population \u2014 are deserting the agricultural countryside for cities because of the risks, costs, low-profitability and intensive nature of agriculture. Had a Green Revolution \u2014 such as the one that dramatically transformed agriculture in Asia decades ago \u2014 materialized in Africa, perhaps the narrative might be different today.<\/p>\n

Challenges in Africa\u2019s agricultural sector have global ramifications. The world needs to produce 70 percent<\/a> more food to keep pace with global population growth and Africa is our best chance for doing so. The region has enormous untapped agricultural potential, hosting more than half of the world\u2019s uncultivated land<\/a>. Moreover, agriculture remains a major economic driver, accounting for 32 percent<\/a> of Africa\u2019s GDP and employing the majority of the continent\u2019s labor force. Smallholder agriculture, in particular, feeds and underpins livelihoods for 70 percent<\/a> of the population in sub-Saharan Africa, a region that is home to 1 billion<\/a> people. Agriculture, therefore, presents a great opportunity for development actors seeking broad impact in Africa. Even the continent\u2019s massive annual food deficit, while worrisome, represents a tremendous market opportunity, one that is projected to grow from $300 billion today to $1 trillion by 2030<\/a>.<\/p>\n

Not surprisingly, the African agricultural landscape is beginning to attract great entrepreneurs focused on improving traditional businesses and bring innovative solutions like microinsurance and enhanced productive use appliances to market. That is why we at\u00a0FINCA Ventures<\/a>\u00a0have made our first agricultural investment in\u00a0Good Nature Agro (GNA)<\/a>, a social enterprise that aims to grow farmer net incomes and bring smallholder families firmly into the middle class.<\/p>\n

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