Africa is home to a huge percentage of the earth’s farmable land. And yet, food scarcity also makes us a net importer of goods (World Economic Forum).
How can this be? What’s missing?
At Ascending Africa, we know that the solution isn’t found in dependence on foreign imports and aid, which puts our well-being at the mercy of unpredictable foreign conflict outcomes. The answer lies in front of us, beneath us and all around us: cultivating Africa’s land will prove that Africa can support Africa, while uplifting local communities and our shared economy.
The key to this breakthrough is in vertical integration. As Africans, we have the land, and we have the drive to succeed. The next step is taking control of the supply chain to ensure end-to-end quality and consistency. What do we mean by vertical integration?
ver·ti·cal in·te·gra·tion
NOUN — the combination in one company of two or more stages of production normally operated by separate companies.
Vertical integration allows a community/ organization to control the supply and distribution of their goods – giving them greater provision along a more efficient and profitable supply chain.
It’s not just farmers; vertical integration requires manufacturers, suppliers, and stores. Vertical integration provides our communities with the opportunity to work together, lift each other up, and become more financially secure in the process.
Vertical integration is already happening in our region: Victory Farms, which produces tilapia in Homa Bay, Kenya, also has a vertically integrated business. In addition to running its own hatchery ponds, deep water cages and a processing plant, Victory Farms has established an in-house distribution system and retail network. Victory Farms is just one example of the promise vertical integration provides African companies.
Currently, Africa imports the majority of its goods, and this gives outsiders our profits and therefore, our power. It’s time to implement vertical integration practices, from farmers to storefronts, so Africans can tap into the vast potential of our land and our people on all levels of the supply chain.
