15 Lucrative Business Ideas To Explore In The Agri Sector – Part 4

10. Agricultural Logistics and Transportation:

Most peasant and smallholder farmers lack the machineries and logistics they need. Those who have the means often miss the planting timing by few days or weeks because they do not have access to tractors in time to plough their lands. The few tractor operators in their areas are busily ploughing other people’s lands – those who operate bigger farms or have the highest money to offer. This affects their yield at the end of the farming seasons.

Transporting produce from the farms to the market or cities is another challenge farmers / buyers have to deal with. Lack of reliable transportation systems to load their goods swiftly to point of sales also significantly contributes to the post-harvest losses.

You can solve this problem by operating agricultural logistics and transportation services. Operate tractor and other machinery hiring services with competitive pricing to meet the demands of the many smallholder farmers. TROTRO Tractor and Hello Tractor have taken the lead in this space. Operate vehicles that will transport farm produce from the farms to the cities or across the African regions. Can you ask yourself how you can become the Uber or Maersk of the agri-sector in Africa and plan and innovate ways to actually execute it? I guarantee you, it’s an area worth exploring.

11. Agri-financing:
The agriculture sector in Africa needs a lot of financial injection to harness its full potential. Every farmer I have ever engaged wish to boost their investments and expand their operations but they lack the financial muscles to do so. The commonest concern of most of the youth who wish to venture into the agricultural space is capital. Almost every player in the value chain requires some level of financial support to expand – from farmers to input suppliers, from agri-tech to agro-processing firms, from market women to exporters. Yes, fully harnessing and modernising the sector requires money, a lot of it.

Can you lend to farmers to support their expansion and growth on favourable terms? Can you establish an investment fund or venture capital, insurance, micro-credits or soft loans firm that is fully dedicated to the agriculture sector? Agri-financing is certainly one surest way to profit from the agri sector.

Any individual or institution that can draw financial models to suit their preference and that of farmers and other agripreneurs stands a chance at not only contributing to the development of agriculture in Africa but also making good returns on their investments. Of course, just like any other business venture, there are some inherent level of risks involved, but when run properly, agri-financing can be a very lucrative undertaking.

12. Exploring the Export Markets:
The fact that we keep complaining about Africa’s overdependence on the West, Asia and America for our food does not mean Africa do not make any export to those regions. Africa exports too. Can you investigate the food produce those regions depend on Africa for and meet such demands?

As a farmer you stand to make higher returns on your investment and sweat better than your compatriots if you can consider the export market. And no, you do not necessarily have to be a farmer to enter the food export market – you can simply form agreements with existing farmers to be their off-takers. Can you add value to these produce? Yes? Value addition means higher profits.

You can take advantage of the African Continental Free Trade Area to consider regional markets and intra-African trade as well when thinking export markets. Remember the food export market has its own peculiar regulations and product specifications. Ensure you make yourself conversant with them.

There is a Hero in you; unleash it.
Elorm Hermann,
Co-Founder, CADMA AgriSolutions

[email protected]