'Understand Africa's challenges'

There are big opportunities for agribusiness in Africa but business needs to understand the environment into which it is entering, according to John Purchase, CEO of the South African Agriculture Business Chamber. “The opportunities exist for the establishment of globally competitive value chains in Africa, but that is provided one can overcome the challenges,” he said. “The lack of local markets with integrity, the cost of doing business, the poor productivity in the production environment along with various legal and financial risks have to be taken into consideration,” he said. “But that does not mean one must shy away from the African opportunity.” Purchase said the rules of the African game meant that environments could change quickly and understanding that environment was crucial for success. “You must also understand your business strategy and market, and choose a good local partner to work with in every country you are planning to operate in.”