Market Size & Location Choice
Small and Mid-Size Farmers
- Senegal has 3.2 million hectares of arable land, over 90% of which cultivated by non-industrialized farmers, with similar conditions in other African countries.
In West Africa, and across the developing world, an investment gap remains in agriculture, particularly for small farmers
United Nations estimates that investment in agriculture needs to rise by 50 percent to meet global food needs
- West Africa provides an attractive opportunity for counter-season and tropical crops at competitive prices
- Fruit and vegetable exports from West Africa are rapidly growing as regional support for agriculture increases, with current volume over 400,000 tons annually
- Impact investing represents a USD $60 billion market that is rapidly continuing to grow
- In recent years, impact investing has overtaken angel investing when it comes to search volume
Fresh fruits and vegetables are a rapidly growing market, with the global value of trade rising 41% from $89.9 billion in 2011 to $126.8 billion in 2014. Every year, the imported percentage of the overall F&V consumption in the OECD countries is relentlessly increasing.
The Choice Behind West Africa & Senegal
West Africa is an optimal agricultural region due to several key factors:
- Warm climate with ample sunlight, suitable for year-around crop cultivation
- Favorable hydrology suitable for various irrigation types: rain-fed, gravity, pivot, and drip (depending on crop)
- Strategic position for both sea and air exports to Europe, North America, Middle East
- Developed road network for local logistics
- Plentiful and economical agricultural labor
Senegal is one of the most favorable countries in Africa to do business. It is a stable democracy with a strong rule of law and a history of political and economic stability. As part of the eight country monetary union, Senegal uses the CFA franc that is pegged to the Euro at a fixed exchange rate. Investor protection offered by OHADA, a well-established, unified and recognized commercial law of West and Central African states.