ImpactAgri
  • Home
  • What we do
  • Working with us
  • Our impact
  • Our team
  • News and insights
  • Contact us
  • Menu

How agribusiness adds value to the mining industry in sub-Saharan Africa

Economic development. Mining companies are some of the biggest landowners in Africa, and as such have a unique opportunity to develop economic diversification strategies based on sustainable use of land and water resources.

Social protection. Agribusiness can play a key role in managing worker livelihoods throughout the life of a mine, as the number and type of mining jobs change.  Agribusiness can:create job movement flexibility for mines when there is a need to flex labour; and, absorb or redirect newly unemployed workers as part of post-mine closure strategies.

Environmental and regulatory benefits. Agriculture can avoid or reverse habitat degradation and support soil and water management. This can support the consent-to-operate and reduce compliance costs.

Financial contributions. Mining projects can develop local supply chains and agribusinesses through their role as a buyer

Different solutions for mining companies depending on opportunity and location:

Own & Operate

Agriculture can be a standalone business within the company (e.g. Alcoa Farmlands has the same financial targets as other businesses).

JV’s & Partnerships

Mining companies can form a Joint Venture or partnership (e.g. AngloGold Ashanti is turning agriculture projects into profitable and sustainable ventures).

General support

Companies can use their competencies to support agriculture development (e.g. Paladin Energy programme in Malawi).

Lease land

Pastoral leases are common in Australia to support land-access and providing options (e.g. BHP Billiton, Rio Tinto, Northern Star Resources).

However, ImpactAgri is familiar with many agricultural projects across Africa, driven by mining companies, but that have yet to succeed. So, what are the key success factors to consider?

Managing Risk

While “greenfield” investments can be seen as too risky, with the right partners a ‘greenfield’ project can be less risky than an established operation in a poor supply chain.

Consider the entire value chain

Many investors looking for opportunities in food processing often overlook associated agricultural projects providing inbound supply for the plant.

Size & Aggregation

Global capital needs to more effective in considering farms at the 500ha – 10,000ha within the portfolio. This includes developing more effective models for aggregation.  It cannot focus solely on established operations at scale or farms over 50,000Ha farms; which are unlikely to be socially or politically acceptable in the long term.

Scalability

A more systematic approach for assessing plans for rapid scale-up once proof of concept has been demonstrated needs to be developed.

Blended Finance

There are many sources of finance. Often these can be overlooked.  Projects need to consider the role of vendor finance, development finance institutions and impact investors among others.  People need to have a holistic view of the project and consider where an additional type of funding can leverage both commercial and social impacts of the investment in agriculture.

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Linkedin
  • Share by Mail

Latest posts

  • ImpactAgri and Valmont® Irrigation Enter an Historic Strategic Cooperation Agreement3rd October 2021 - 10:43 am
  • Transforming Contaminated Mine Sites using Pongamia Trees3rd May 2021 - 1:28 pm
  • biodiversity and agribusinessBiodiversity and Agribusiness in Africa5th June 2020 - 4:31 pm
  • Investing in Resilient Agriculture Post-COVID-191st May 2020 - 3:55 pm
  • Outcome Based Pricing from ImpactAgriOutcome Based Pricing to Mitigate Climate Risk1st December 2019 - 4:40 pm
  • Business Chief articleImpactAgri in the Press: Business Chief Europe16th July 2019 - 6:39 pm
  • Managing Risk in African Agribusiness15th July 2019 - 12:15 pm
  • Realising Full Investment Potential in African Agriculture15th June 2019 - 12:12 pm
  • ImpactAgri Remediates Post-Mine Environments in Africa12th May 2019 - 12:06 pm
  • Success in the Tree Nut Market10th April 2019 - 11:57 am

Quick links

What we do

Our impact

Working with us

Latest posts

Contact us

Our policies
Advisory
Case studies

Quick links

What we do
Our impact
Working with us
Latest posts
Contact us
Our policies
Advisory
Case studies

© Copyright ImpactAgri 2021. Designed and built by The Ambitions Agency
Scroll to top

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

OKLearn more

Cookie and Privacy Settings

How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, you cannot refuse them without impacting how our site functions. You can block or delete them by changing your browser settings and force blocking all cookies on this website.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visist to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Vimeo and Youtube video embeds:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

footer