Africa is frequently described as the world’s next agribusiness frontier. Yet, despite abundant land, labour, and demand, investment flows remain inconsistent and cautious. According to Bharat Kulkarni, an independent consultant and author of African Agribusiness, the problem is not Africa’s potential—but how that potential is misunderstood.
Too often, agribusiness strategies focus on increasing production while ignoring the systems that connect farmers to markets. This production-first mindset leads to oversupply, price crashes, and farmer distress. Kulkarni argues that without structured markets, productivity gains alone cannot deliver prosperity.
Having worked across multiple African countries, Kulkarni has seen firsthand how weak institutions distort incentives. Farmers lack access to transparent pricing. Buyers face quality uncertainty. Banks hesitate to lend due to poor collateral mechanisms. The result is a fragmented ecosystem where risk is amplified rather than managed.
Commodity exchanges and Warehouse Receipt Systems offer a practical solution. By enabling price discovery, quality certification, and trade financing, these institutions reduce uncertainty across the value chain. In Ghana and Kenya, Kulkarni has been involved in designing futures-ready market frameworks that demonstrate how African markets can evolve—if reforms are sequenced correctly and grounded in operational reality.
One of the most common policy mistakes is importing advanced market instruments before establishing basic systems. Futures markets, derivatives, and complex financing tools cannot function without reliable spot markets, warehousing, and contract enforcement. African Agribusiness highlights why institutional sequencing matters—and how skipping steps leads to costly failures.
Another misconception is that African farmers are too small or informal to participate in structured markets. Kulkarni’s work shows the opposite. When institutions are designed inclusively, smallholders benefit the most. In Ethiopia, standardised grading and guaranteed settlement empowered farmers by eliminating exploitative intermediaries and information asymmetry.
India’s agribusiness evolution provides a valuable reference point. While imperfect, India’s regulated markets, cooperative systems, and commodity exchanges illustrate how scale, inclusion, and efficiency can coexist. Kulkarni’s ability to bridge Indian experience with African realities makes his perspective particularly relevant for policymakers seeking adaptable solutions rather than imported blueprints.
For investors, the message is equally clear. African agribusiness risk is not fixed—it is structural. Strengthen institutions, and risk declines. Ignore them, and even the best projects struggle to scale. This insight is critical for impact funds, development finance institutions, and private capital looking for sustainable returns.
A African Agribusiness serves as both a warning and a roadmap. It cautions against simplistic narratives and offers a structured framework for understanding Africa’s agricultural markets as systems—where policy, finance, technology, and institutions must align.
As global food systems face unprecedented stress, Africa’s role will only grow. Those who understand the mechanics behind its markets will be best positioned to shape its future.