How Agriculture is Catalysing Africa’s Industrial Growth

Written by Boniface Abudho, Research Analyst, Knight Frank Africa 

Beyond its contribution to national output, the sector remains a dominant source of employment. When expanded to include agrifood systems, such as processing, logistics, and retail, agriculture directly and indirectly supports over 300 million jobs, representing around 65% of Africa’s total employment (The Alliance for a Green Revolution in Africa (AGRA)). This substantial labour force underpins a burgeoning agro-industrial sector and creates rising demand for industrial infrastructure such as processing zones, logistics hubs, and specialised warehousing. Transitioning from primary agricultural production to value-added processing substantially enhances economic returns.

Agro-industrialisation boosting real estate demand.

Agro-processing is transforming real estate demand across Africa. With approximately two-thirds of the continent’s manufacturing value added sourced from agricultural inputs (FAO), the expansion of agricultural value chains is driving significant demand for real estate assets such as processing facilities, industrial parks, cold storage units, and logistics hubs. A notable example is Nigeria’s Special Agro-Industrial Processing Zones (SAPZs), which have secured US$ 2.2 bn in investment commitments (AfDB). These zones are catalysing the development of agro-industrial hubs across 24 states, focused on priority commodities such as cassava, sugarcane, rice, and leather. This initiative is generating sustained demand for feed collection centres, grain storage silos, cold rooms, sorting facilities, and other value-chain-related real estate assets.

Key trends: Innovation and Mechanisation

Technological innovation in agriculture is creating stronger forward linkages into industry, fundamentally reshaping real estate demand in rural and peri-urban areas. Mechanisation and digital tools are enhancing productivity, streamlining post-harvest handling, and increasing processing throughput.

Digital agriculture, in particular, is proving instrumental in reducing post-harvest losses, estimated at 30–40% for grains and up to 70% for perishables (Africa Eats), resulting in higher and more consistent volumes for cold chains, milling operations, and packaging industries. This shift is reinforcing the need for investment in logistics infrastructure, training facilities, equipment storage, and agro-industrial clusters.

Innovative platforms like Hello Tractor not only offer mechanisation services but also train farmers in equipment use and build out ecosystems for maintenance, spare parts, and fuel access, each element creating demand for associated industrial real estate. In Kenya, tools such as Ujuzi’s soil testing kits and mobile applications that connect farmers to buyers,

market forecasts, and agronomic advice are improving yields and reducing input risk, ensuring reliable supply streams for processors.

Employment & Income Growth

Agriculture remains the backbone of employment in Africa, engaging 65–70% of the continent’s labour force (World Bank), a sharp contrast to less than 10% in high-income countries (European Commission). The growing shift towards agro-industrial processing is driving a structural labour transition from traditional subsistence farming to formal wage employment across related sectors such as logistics, packaging, cold storage, and transportation, particularly in secondary cities and peri-urban areas.

Notable examples include DAL Group in Sudan, which, through support from the African Development Bank (AfDB), has created 2,000+ jobs, integrated approximately 4,000 farmers, and paid more than US$ 206 million to local suppliers (FAO). In Côte d’Ivoire, the government’s cashew processing initiative has already generated 18,300 jobs, with an additional 12,000 positions projected by 2025. These employment shifts not only boost household incomes but also stimulate demand for manufactured goods, contributing to broader economic diversification and structural transformation across the continent.

Overall, Agriculture is no longer confined to rural subsistence; it has emerged as a powerful driver of industrial development across Africa. Between 2023 and 2025, agro-industrial initiatives in countries such as Côte d’Ivoire, Ethiopia, Kenya, Nigeria, Ghana, and Sudan have fuelled strong demand for:

• Industrial parks and processing zones
• Cold chain facilities and transport logistics hubs
• Warehousing and packaging plants
• Road and utility infrastructure, particularly in peri-urban areas

For real estate developers and investors, agro-industrialisation presents a compelling opportunity, one that is both high-growth and high-impact. It aligns directly with Africa’s structural transformation agenda, offering long-term potential for economic diversification, job creation, and infrastructure-led development.