The African continent has been urged to leverage its vast arable land and resource base to drive long-term growth.
Group Chief Executive Officer of Absa Group, Kenny Fihla believes that even as global tensions intensify, Africa’s capacity to feed the world could be a defining economic opportunity.
Mr. Fihla underscores the continent’s capacity to feed the world and critical mineral reserves as key drivers of resilience. The banker couldn’t be further from the truth as about 60 percent of the world’s uncultivated arable land is located in Africa.
If there’s any talk of future food security, then one is sure that Africa is the place where that opportunity can be harnessed to the fullest. Mr. Fihla is confident that Africa occupies a unique position, for as he put it: “Whatever happens in terms of the global economy shifts, it will affect the African continent. But I don’t think that should scare us”.
“What can we do to accelerate the development of these resources that we have? How do we position ourselves to ensure that we take advantage of some of the crisis that is happening around us?” he asked.
The Absa Group remains one of the continent’s largest commercial banks, driving agricultural financing across Africa . Its Group Chief Executive Officer says agriculture is not only a priority lending segment for the bank, but also a critical growth lever that can reshape productivity, food security, and industrial development if properly scaled.
In South Africa, 40 percent of bank lending to the agricultural sector is done by Absa. Mr. Fihla maintains that agriculture remains commercially viable when properly structured, insisting that focused lending models can deliver long-term sustainability, despite the sector’s cyclical risks.
Banks must act as intermediaries, connecting investors to viable opportunities and partnering governments to package bankable projects, while leveraging domestic deposits as a key source of liquidity.
As the world marked Earth Day on 22 April, greater recognition of agriculture as a key driver of environmental sustainability is crucial. Earth Day is a reminder that sustainability starts on the ground.
More than 300 million Africans faced hunger in 2024 and this number is projected to rise as climate change has a disproportionate impact on African food production.
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