Food security remains a globally topical issue. This is one of the reasons why the agribusiness and food industries will always be worth a shot. I am always reminded of what Akinwumi Adesina, President of the Africa Development Bank, once said. “The future millionaires and billionaires of Africa will not be coming from the oil and gas sector, they will be coming from the agricultural sector. But I want African countries to be looking at agriculture as a business, not as a way of life. Nobody smokes gas, nobody drinks oil, but everybody eats food. So food is critical and that is what Africa has a comparative advantage in.” With that said, here are 6 business opportunities in agribusiness and food to take up in 2022 (and beyond).
FMCG Targeting The Diaspora
Fast Moving Consumer Goods (FMCG) within the local (i.e. Zimbabwean or African context) is a big deal. In Zimbabwe, you look at brands like Simbisa and OK, for example. They have done quite well, financially performing despite economic upheavals in Zimbabwe. That is indicative of how the FMCG segment is laden with opportunities. It is worth noting that in the past few years many brands have entered this space in Zimbabwe. Despite the competition, virtually all of those brands have continued to perform. The business opportunity I am focusing on here is different, well in a sense. It is getting into FMCG but focusing on the diaspora as your target market. There are reportedly between 3 million and 5 million Zimbabweans in the diaspora. They heartily love and always crave Zimbabwean brands. There are huge business prospects based on that dynamic.
Farm Produce Storage And Preservation Solutions
For my undergrad, I did Post Harvest Technology. This opened my eyes to the realities of post-harvest losses. In Zimbabwe and Africa at large, at least 40 per cent of harvests end up as post-harvest losses. This is largely due to storage unavailability or inefficiencies. Providing farm produce storage solutions would be a hit amongst farmers. To broaden it you can even include preservation solutions that effectively extend the shelf lives of farm produce. Such business focuses can also span to consultancy services to assist farmers with knowledge and guidance.
Dynamic Food Packaging
You probably might have never noticed but there is untapped potential in food packaging. Have you not noticed how most food packaging is substandard? Have you noticed how in most cases food packaging is not even there? To add to that, most food packaging materials are sourced from outside the country. Recycling companies are also sleeping on this food packaging aspect. How much litter do you see lying around that is recyclable? Loads of it! There are a few solid companies that provide food packaging solutions in Zimbabwe. The reality of the matter is that we need more players. Kindly give this a thought.
Fish Production
Fish production has been steadily going up in Zimbabwe over the past few years. However, I feel there remain lots of untapped potential. Additionally, value addition and processing of by-products from fish remains mostly docile. Countless technological innovations now allow anyone to venture into fish production. For example, portable fish pools are readily available nowadays in Zimbabwe. In 2022 and beyond we have to see more and more people taking up fish production.
Chilli Production For Export
Chilli production is another area that you can settle for. Locally there are promising outcomes especially if you transcend just production into value addition. Bigger prospects are waiting for you in chilli production for the export market. The top two target markets to consider are China and Europe. China consumes almost 80 000 tonnes of chilli every year. Over 1.5 million tonnes of chilli are needed to cater for Europe’s annual needs. This clearly shows you that those two regions are perfect target markets. There are not that many competitors with regards to other exporters to those regions. It is only Uganda and Morocco (with Rwanda gradually coming up), that are actively exporting there. You can have a piece of the cake as well.
Essential Oils
What are essential oils? Essential oils are volatile oils, used to make fragrances and flavourings, especially one having the characteristic scent of the plant from which it is obtained. The market for skin, hair, and body care products has exponentially surged in the past few years. It does not matter it is females or males, the demand for these products is ever-present. What is interesting though is that most of these products are imported. This opens business opportunities for local production of such products. That is where essential oils come in. Bear in mind that essential oils are so versatile that they are needed in several industries. They are mostly needed in the aforementioned products but there is more. They are used in the food industry and manufacturing industry as well. So, planting the respective plants and extracting essential oils can be big business.
There you have it, 6 business opportunities in agribusiness and food to take up this year (and beyond). The potential these opportunities carry is incalculable. You can be the next agribusiness and food unicorn in Zimbabwe through them. You will never know till you try.
