Investing in foreign agriculture whether in the form of stocks, commodities, or debt financing can be a smart and culturally conscious way to diversify your portfolio
Agriculture is a broad term, and investing in agriculture is like investing in technology or real estate. It’s a good start, but you need to narrow down your options.
When looking to invest in Agribusiness in Africa, the following factors should be put into consideration.
1. Geography – Is the region suited for agriculture development? Does it have the land and other natural resources required to sustain profitable agriculture?

2. Political Stability – Is the country or region politically stable? Is there a risk that you could lose your investment due to factors not specifically related to agriculture?

3. Development – Is the country developed, developing, or undeveloped? While investing in foreign developed nations may help limit your investment risk, opportunities in developing and undeveloped regions (Nigeria, Sierra Leone) may better serve other investment objectives.

4. Exchange Rate - Ensure a good understanding of exchange rates and the value of local currency when bringing money into the country from overseas. You will need a good understanding of exchange rates and the true value of local currency, as well as a Certificate of Importation. By opening an account at a local bank it is easier to repay tax debts and legal fees and you can set up standing orders to ensure prompt payments.

5. Culture and Religion – Because African countries are religion inclined, it is essential to know what specifically to invest in when coming to Africa. For example, it would be unwise to invest in pig farming in a predominantly Muslim country as Muslims abhor pork.
6. Project Life Cycle And Time Frame For Returns - Some agricultural projects can be replanted after harvest but the original plants may produce several harvests. Ask:
• How long will your investment take to produce returns?
• Can the intended product be harvested quickly and replanted for multiple crop returns?
• Will the initial planting produce several yields over the expected time frame of your investment?
• Is this a long-term investment intended to provide for generational returns and rewards for your children and grandchildren?

7. Type of product - There are many different types of fruits, trees, fish, and more, available for cultivating. Ask:
• Is there a strong demand for the chosen product?
• How long will the chosen product take to mature, and thus produce income?

8. How Will The Product Get To Market? - Once product is mature and ready for sale, the developer must have a plan to move it to market. Ask:

• Do local options exist, or will this project require a brand-new mode of transportation for shipping?
• How much will it cost to bring the product to market and the anticipated impact on your net returns?

9. Risk Of Loss - Every investment carries some risk. Agriculture presents additional risks that fall outside the developer’s control. Ask:
• Is this product susceptible to drought?
• Is there a chance of wildfires, and could the project burn?
• Does the area experience high winds, rainy seasons, tornadoes or hurricanes, or other natural phenomenon which could affect the crops?
• What precautions have been, or will be, taken to protect the crop?

10. Security – Is the intended place of investment safe? This is one thing to put into consideration to prevent cases of loss due to terrorist attacks and similar risks.

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