Agriculture As Infrastructure: Rethinking Africa's Industrial Pathway

Africa’s agricultural sector is typically seen in terms of food security and job creation, but we need to recognize agriculture as the vital infrastructure asset it truly is. When effectively developed, it can stimulate industrial growth, generate millions of jobs, and establish resilient trade corridors throughout the continent.

- BY CHINTU LING'OMBA, STANDARD BANK CORPORATE AND INVESTMENT BANKING’S HEAD OF CLIENT COVERAGE: AFRICA REGIONS

Sub-Saharan Africa’s economy is projected to grow 4% in 2025, up from 3.6% in 2024, with domestic consumption providing crucial stability. Yet this recovery remains fragile.

Climate shocks in 2024 reduced agricultural yields and hydropower generation in countries like Zambia and Malawi, while fiscal pressures continue to mount in many countries. It’s no longer a question of whether Africa can industrialize through agriculture, but whether financial institutions and governments can mobilize capital quickly enough to meet this urgent need.

The Foundational Agri-infrastructure Imperative

Africa’s primary barrier to agricultural transformation is access to the infrastructure it needs. Poor rural roads, constrained port capacity, and inadequate storage facilities increase costs, making imported goods more competitive than locally-produced alternatives.

That is why infrastructure investment must be understood as the foundation of agricultural development, not as an afterthought. This includes transport corridors connecting production zones to ports, energy solutions powering processing facilities, water infrastructure mitigating climate risks, and cold chain logistics preserving product value.

Without these links in the value chain, Africa’s agricultural potential will not be realized.

Consider the impact of Kenya’s Standard Gauge Railway, which has expanded market access for processing entities along its route, or the TAZARA Railway connecting Tanzania and Zambia. Despite years of poor maintenance, they remain critical for moving goods from Central to East Africa and serve as economic enablers.

From Subsistence To Commercially-Scaled Agriculture

Currently, 70% to 80% of rural jobs in Africa are in agriculture, predominantly subsistence farming. This statistic reflects both the sector’s centrality and its underperformance.