Africa’s food systems are approaching a defining moment as the continent’s population is projected to reach approximately 2.5 billion people by 2050, making the need to ensure affordable, nutritious and accessible food increasingly urgent, according to estimates from the United Nations and the International Monetary Fund.
While Africa possesses vast agricultural potential, experts argue that the key challenge is no longer simply increasing production but strengthening the systems that connect farms to consumers.
In recent years, investments in local processing and manufacturing have become essential drivers of food security, job creation and reduced import dependence across Africa, with agribusiness companies increasingly developing integrated value chains that strengthen local production, processing and distribution while improving resilience to global supply disruptions and price volatility.
In an exclusive interview with Farmers Review Africa, Anil Nair, Country Head for Nigeria at Olam Agri said Africa’s food systems are not yet fully prepared to meet the scale of future demand despite the continent’s enormous agricultural potential.
“The challenge is less about production potential and more about structural gaps across processing, storage, logistics, manufacturing and market access,” Nair said adding that as populations grow and urban consumption shifts towards processed staples such as flour, pasta and cooking oil, countries need stronger local industrial capacity and food safety systems.
According to him, addressing these gaps will require integrated value chains, greater investment in domestic processing and policy support that enables food systems to become competitive, scalable and sustainable.
Strengthening local value addition
Olam Agri’s recent investments across Africa reflect its long-term commitment to strengthening regional food systems through local value addition and industrial development.
Among these is a US$40 million investment in Ghana’s first state-of-the-art pasta manufacturing facility, which is expected to expand access to affordable fortified pasta, strengthen domestic food manufacturing capacity, and create around 300 direct and indirect jobs across the supply chain and distribution network.
The company has also invested US$50 million in a soybean crushing and feed mill complex in Nigeria, currently the largest soybean crushing facility in sub-Saharan Africa, with an annual processing capacity of up to 350,000 metric tonnes.
The facility supplies Olam Agri’s feed-milling operations and edible oil subsidiary, Ruyat Oil, supporting local value addition while reducing reliance on imported refined products.
“Local manufacturing helps produce food closer to where it is consumed, improving availability, affordability and resilience,” said Nair. “It also creates skilled jobs, supports SMEs and reduces exposure to external supply shocks.”
The Nigerian soybean facility illustrates how integrated value chains can strengthen domestic food systems. Soybean meal produced at the plant supports poultry, livestock and aquaculture feed industries, while soy oil serves household and industrial markets.
By sourcing soybeans locally and processing them domestically, the investment helps strengthen farmer linkages, improve supply reliability and retain more value within the country.
Integrated agricultural value chains
Beyond industrial processing, integrated agricultural value chains are creating new opportunities for farmers, particularly smallholders.
Nair noted that connecting farmers to reliable downstream markets through feed mills, edible oil refineries and food manufacturers improves market access, reduces post-harvest losses and provides stronger incentives for productivity improvements.
“Integrated value chains connect farmers to reliable demand,” he said. “For smallholders, this can translate into improved incomes, stronger livelihoods and greater participation in formal supply chains.”
Nigeria has become one of Olam Agri’s most significant investment destinations, with operations spanning rice farming, wheat milling, pasta production, edible oil manufacturing, animal feed, sesame sourcing and logistics.
The company currently operates 19 processing facilities, employs more than 3,500 people and works with over 100,000 smallholder farmers across the country.
Recent expansions have included increased wheat milling capacity, locally produced pasta and consumer food products, as well as new edible oil offerings with products such as Mama’s Choice Wheat Flour, Mama’s Pride Semolina and Mama’s Pride Soya Oil setting examples of how locally sourced agricultural commodities are being transformed into consumer products tailored to domestic market needs.
Climate-smart and regenerative agriculture
Climate change remains another major challenge facing African agriculture with rising temperatures, erratic rainfall patterns and extreme weather events already affecting productivity across many farming regions.
To address these challenges, Olam Agri is investing in climate-smart and regenerative agricultural initiatives designed to improve resilience while supporting farmer livelihoods.
In Nigeria, the company’s “Seed for the Future” initiative, implemented in partnership with organisations including the International Center for Agricultural Research in the Dry Areas (ICARDA) and the Lake Chad Research Institute, is developing heat- and drought-tolerant wheat varieties suited to local conditions. One such variety, known as Crown durum wheat, matures early, performs well under heat stress and helps farmers improve productivity.
The company also supports farmers through training programmes focused on agronomic best practices, soil health management, post-harvest handling and resource efficiency.
According to Nair, building climate resilience requires long-term collaboration among governments, research institutions, agribusinesses and farming communities to ensure solutions are practical, scalable and commercially viable.
Looking ahead
Nair argues that, looking ahead, attracting greater investment into Africa’s agri-processing sector will require stronger collaboration between governments and the private sector, supported by predictable policy frameworks, reliable infrastructure, efficient logistics networks and robust food safety systems that create an enabling environment for large-scale investments to thrive.
“The challenge is not a lack of ambition or opportunity,” he noted. “The challenge is creating the conditions required to deploy capital at scale.”
As Africa’s population continues to grow and food demand accelerates, the next phase of transformation is expected to focus on expanding domestic processing capacity, strengthening regional trade, improving logistics networks and building manufacturing capabilities that can support long-term food security while creating economic opportunities across the continent.
