Entrepreneurship Zone: 20 June 2023 :: Nigeria: Business leaders reveal 11 opportunities in agri sector

Tue Jun 20 06:41:07 CAT 2023

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com/> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Entrepreneurship Zone: 20 June 2023 ::  Nigeria: Business leaders reveal 11
opportunities in agri sector

·          

 <https://www.hyundai.co.zw/> 

Businesspeople and investors highlight 11 opportunities in Nigeria’s
agribusiness sector, from cattle farming and superfoods exports to
plant-based milk substitutes and baby food production.

1. Cattle farming and beef processing. Thessa Bagu of Naijalink Limited
suggests that efficiently executed, large-scale cattle fattening could prove
to be a promising venture. This potential arises from the conflicts among
ethnic groups in traditional grazing areas.  

2. Repair and upkeep solutions for Nigeria’s agricultural machinery. In the
Nigerian agricultural sector, there is an untapped business opportunity in
the efficient maintenance and repair of machinery, such as tractors, notes
Mira Mehta, CEO of Tomato Jos. Persistent parts shortages have led to
prolonged downtime. Mehta advises prospective entrants to connect with
commercial farming entities to understand and solve their unique challenges.
3. Cold storage solutions. According to the United Nations’ Food and
Agriculture Organisation, more than 40% of food in sub-Saharan Africa spoils
before it gets to the consumer. This loss can escalate to 60% for fresh
produce, indicating a substantial unfulfilled need for temperature-regulated
cold storage facilities and transport services. An example of a Nigerian
company that has tapped into this opportunity is ColdHubs, which offers
solar-powered walk-in cold storage solutions tailored for farmers,
retailers, and wholesalers. Strategically situated at key food production
and consumption hubs like markets and farms, these cold rooms operate on a
pay-as-you-store subscription model. Farmers are charged a daily flat fee
per crate of food stored.  

4. Plant-based milk substitutes. Deepak Singhal, group head for consumer
business at Singapore-headquartered Tolaram, identified the local production
of plant-based milk substitutes as a potentially lucrative opportunity in
some countries. Currently, Nigeria – where Tolaram has a substantial
business – depends on imports for at least 60% of the dairy products it
consumes  

5. Turning Africa’s agricultural waste into electricity. There is potential
in Africa to convert agricultural waste into electricity, according to
Ikenna Nzewi, CEO and co-founder of Nigeria-based Releaf, a company that
develops equipment and software to make the oil palm value chain more
efficient and profitable. The palm oil processing industry alone generates
substantial organic waste which can be used for electricity generation. “I
think there is huge potential in biomass electrification, and it is a key
area in which Africa needs to take a more active role in the research and
development,” Nzewi says 

6. Baby food production. According to the International Trade Centre, the
domestic production of infant food in Africa contains a wealth of untapped
potential. Each year, Africa brings in €570 million worth of infant food
preparations, a number that is expected to climb beyond €1.1 billion by
2026. This signifies a major investment chance in Africa’s baby food value
chain, where imports outpace exports by a factor of ten. Entrepreneurs, such
as Seun Sangoleye, the originator of Baby Grubz in Nigeria, are already
capitalising on this prospect by using locally obtained ingredients to
manufacture premium baby food.   

7. Hibiscus and other superfoods. Collins dictionary defines superfoods as
“food that contains many vitamins and other substances that are considered
to be very good for your health”. As global consumers become more aware of
their health, several African producers are ramping up production of
superfood crops suited for local cultivation. Nigerian commodities processor
and trader AgroEknor built its business around the export of the hibiscus
plant, a flower currently in high demand for processing into tea as well as
an ingredient in various wellness products in its powdered form 

8. Fish farming. Verod Capital’s managing partner, Danladi Verheijen,
identifies fish import substitution as a significant opportunity. He points
to villages in Norway where the entire economy is based on growing a
particular type of fish (stockfish) sold to Nigeria. Trawlers from Southeast
Asia also fish in the waters outside Lagos and Accra, process it in their
countries and then sell it back into Africa 

9. Export of niche consumer goods items to the US. The African Growth and
Opportunity Act (AGOA) offers duty-free US market access to eligible
sub-Saharan African countries. Exporters could focus on niche FMCG products,
like dried mango, fruit jams, sugar-free chocolate, and canned catfish.
Canned catfish is a particular favourite among West Africans living in the
US. Its high demand and low domestic production make it a strong export
candidate.  

10. Commercialising and formalising traditional foods. Several
entrepreneurs have successfully commercialised traditional food items. A
prime example is Chichi Eriobu, the CEO of Phronesis Foods. She recognised a
market opportunity for packaged African breadfruit products, both in Nigeria
and abroad. Known as ‘ukwa’ in Igbo, this edible fruit is predominantly
grown and consumed in southeastern Nigeria. Its seeds are prized for their
high nutritional value. Currently, Phronesis Foods offers an array of ukwa
products, such as dried and roasted ukwa, ukwa poundo, and ukwa flour.  

11. Packaged foods and snacks. Around 51% of Nigeria’s population live in
urban areas, with high urbanisation rates changing consumption habits.
“People now look for more convenience and seek out packaged foods, which is
different from what they would eat in rural areas. There is a huge
opportunity to invest in companies able to produce a packaged food product
at the right price point, which is key because many consumers in the region
are price sensitive,” says Mezuo Nwuneli, managing partner and co-founder of
private equity firm Sahel Capital.  

Nigeria’s Shaldag fish farm, which produces processed, smoked catfish.

- howwemadeitinafrica

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
bulls at bullszimbabwe.com <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe>
Tel: +263 4 2927658 Cell: +263 77 344 1674

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 616434 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230620/fb2619c8/attachment-0001.bin>