At a glance
Why is this an important area for German companies?
Agriculture in the Global South is facing far-reaching transformation. Growing demand, climate change and scarce resources call for state-of-the-art solutions.
What growth opportunities are available?
The agri-food sector is expanding rapidly. Investment in production, storage, transport, processing and packaging create added value – not only for exports to Europe, but for regional markets too. Companies that establish stable supply chains early on will secure a competitive edge.
How can businesses get involved?
One thing is clear: innovative technologies and expertise are in demand in this sector – from smart irrigation and yield analytics to agri-PV and AI solutions. Companies that invest in fair and efficient supply chains benefit both from reliable sources of raw materials and access to new markets.
Companies wishing to grow their business in the food and commodities sector can ill afford to ignore the Global South. The region is responsible for many of the raw materials and foodstuffs that are processed in Europe by German companies or sold as specialities. And business is by no means limited to cultivation: storage, transport, processing and packaging also offer lucrative opportunities to add value.
Agricultural trade at a local level offer further opportunities. Population growth, changing consumer habits and growing expectations regarding food quality all drive dynamic demand. Growth in the agri-food and nutrition SME sector is strong and innovative business models are emerging along the value chains. Forecasts show that the agri-food sector in Africa will grow by just under 10% annually by 2030, while turnover in Latin America is expected to reach around EUR 550 billion – some EUR 150 billion more than today.
A rewarding sector facing challenges
As exciting as the market is, it does present its share of challenges. Climate change is already having a massive impact. Droughts, floods and other extreme weather events are reducing crop yields and threatening food security. Although more than 510 million smallholders form the backbone of agriculture, many lack access to modern methods, knowledge and technologies, to diversify their cropping systems, for example. The consequences are serious. According to the Food and Agriculture Organisation of the United Nations (FAO), between 638 and 720 million people faced hunger in 2024, particularly in rural areas.
Strengthening agricultural supply chains
This is where German companies come in. Investment in processing, transport and storage in collaboration with local partners not only improves the quality and shelf life of products, it also generates additional value directly in the local area. Training, technology transfer and fair contracts empower small-scale farmers – and make supply relationships more stable and reliable.
For German companies, this is a triple win. They secure access to high-quality raw materials, reduce their dependence on others and diversify their supply chains. At the same time, they are able to tap into growing markets in the Global South and position themselves as equal partners.
Best practices
Smart farming – high tech in the fields
Digital technologies such as the Internet of Things (IoT), big data and artificial intelligence are making agriculture more efficient and environmentally friendly. For example, the German company Village Data Analytics (VIDA) has successfully launched its geospatial software in several countries in sub-Saharan Africa, with support from develoPPP. The AI-powered solution uses satellite data to analyse the energy requirements of agricultural land and the potential for using renewable energy, enabling VIDA to access new markets and position itself as a provider of digital infrastructure and a training partner.
Agri-PV: Energy meets agriculture
Agri-photovoltaics (agri-PV) is also becoming an increasingly important field. Combining agriculture and solar power generation, agri-PV offers a clear advantage in regions where land and energy are in short supply. German companies can export their technology for photovoltaics, irrigation and digital control systems, while contributing to sustainable development. SUNfarming has paved the way in Turkey, again in partnership with develoPPP. At a solar farm near the Syrian border, the company has combined electricity generation with digitally controlled agriculture and training programmes for refugees and local people. These experiences now serve as a springboard for similar projects in Africa.
Sharing knowledge, boosting value creation
Sustainable supply chains create fair partnerships and generate greater economic value. With support from develoPPP, africrops! focuses on professional value chains that revolve around the baobab tree in Tanzania. In partnership with the Tanzanian German Family Group of Women (TAGEFA), it runs training courses, enters into contracts with fruit pickers and creates jobs – for example, in the production of biochar as an emission-friendly alternative to charcoal made from wood.
These examples show that the benefit of sustainable agriculture is two-fold. Companies that conserve resources operate in an environmentally friendly manner and enter into fair partnerships not only safeguard their competitiveness, they also create jobs that generate income and safeguard food security at a local level.
Digital farmland: Greater sustainability through smart farming
Drone surveillance
Soil sensors
Autonomous tractors
Satellite imagery
Do you want to make agricultural activities more sustainable and innovative?
AWE is your first point of contact. It will advise you on potential next steps, put you in touch with relevant contacts and give you an overview of the funding options best suited to you. The following support programmes are available:
develoPPP
The BMZ provides targeted support for business initiatives that make a quantifiable contribution to sustainable agricultural transformation in developing countries and emerging economies, and consequently to a more secure and sustainable food supply.
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ImpactConnect
Funding from DEG is primarily aimed at SMEs that wish to invest in reform-oriented African countries, offering loans of between EUR 750,000 and EUR 5 million.
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