Historically, agriculture has played a crucial role in the process of overall national economic development, particularly where a large part of the population depends on the sector for employment and income. Chayton Africa is a highly entrepreneurial team whose strategy focuses on modern farming practices. In just two years of investment and taking into account the expansion strategy over the coming 12 months, Chayton Africa is expected to produce 20% of Zambia’s soya and wheat production.

In a landmark transaction announced earlier this year, Zeder Investments Limited, the JSE‐listed agricultural investment company managed and 40% owned by PSG, a South African investment firm, is committing US$46.7 million to acquire and expand Chayton Africa’s agricultural business. Presently supplying markets in Lusaka, this food security initiative focuses on exporting food cross‐border within sub‐Saharan Africa to meet the growing demand of a continent in which market inefficiencies and poor infrastructure have resulted in high food prices.

Sub‐Saharan Africa is ideally positioned to become a leading agricultural producer, with such natural advantages as fertile land, abundant water resources and proximity to transportation links and regional markets. Chayton Africa believes a sustainable business model for farming in Africa must not only take advantage of the continent’s intrinsic agricultural potential, but also implement simple, effective strategies that will make Africans successful farmers in the years ahead.

Numerous factors have prohibited Africa from fulfilling its agricultural potential; in our view, these include lack of capital, gaps in infrastructure and, importantly, the absence of advanced farming technologies. At the same time, Africa also has enormous potential to help solve this crisis and transform itself into a global agricultural power, potentially leap frogging ahead of established leaders.

Attracting foreign investors can facilitate growth of the agricultural sector through commercial expansion, increasing yields by implementing techniques like conservation tillage, crop rotation, doubling cropping and irrigation. Ultimately, such investment will produce more food for Africa, and has the potential to improve social conditions, provide access to education and training, and increase economic prospects in rural areas.

In considering the potential impact of agricultural development in southern Africa,  Chayton Africa therefore sees similarities to the social and economic effects of the introduction of telephony in emerging markets.  It could be argued that the adoption of mobile technology in Africa avoided an entire cycle of investment that is subsequently becoming obsolete as new technology is introduced.

At the same time, the economic benefits of mobile phone technology in emerging markets have been widely reported: consumer prices are falling, price discrepancies are being reduced and traders are becoming more profitable. Other benefits include an increase in literacy and, as mobile functionality develops, inexpensive access to the internet and other valuable technologies that may replace traditional computers.

The company sees parallels to what can be achieved in the development of the agricultural sector through the introduction of advanced farming techniques. “It is our view that large‐scale agricultural investment must be made in conjunction with efforts to improve the productivity of small farmers.

Education and skill transfer will likely bring economic as well as social benefits to farming communities, while smaller farmers can take advantage of improved infrastructure, including access to storage, marketing and improved distribution. Such a community‐based approach to realizing the region’s agricultural potential can have a profound impact on economic development and the reduction of poverty and hunger by enhancing productivity, expanding local markets and attracting much‐needed investment capital.”

To put this all in perspective,  Chayton Africa sees enormous opportunities as the company look to develop agricultural businesses across the value chain in Zambia, where as much as seventy‐five percent of small scale farmers mono‐crop. Low‐cost techniques like zero tillage and doubling cropping have not been widely adopted in Zambia and yet can easily be introduced to local farmers by neighbouring large‐scale commercial operators.

For example, small‐scale farmers typically grow only maize, the national food staple; they can be encouraged grow soya as well, a legume with a natural nitrogen‐fixing effect on the soil. This requires no additional investment or special equipment, yet farmers have no apparent incentive as they either have no need for soya or lack a route to market for it.

Commercial farm operators can introduce routes to market for the unwanted soya, enabling small farmers to increase their income while improving the quality of their soil. Over time, the land productivity of the maize/soya double‐croppers will increase, which can in turn further increase their income as maize yields rise in response and surpluses can be sold. Zero tillage (a technique in which fields are left unplowed and crops are planted in a seedbed not filled since the previous harvest) leaves the soil undisturbed with a blanket of rich organic matter covering the soil.

As seeds and other inputs are spread, the subsequent rotting of the top layer creates natural fertilizing effects and protects against the erosion that would otherwise sweep away the most fertile part of the soil due to wind and rain. Soil degradation leads to lower productivity.

Traditionally, as the quality of their soil depletes, local mono‐cropping farmers have moved to another patch of land, starting the cycle again. Zero tillage not only reduces soil erosion, it also conserves moisture, reduces farm labour requirements, expands the growing window between planting and harvest, and increases organic matter in the soil, boosting nutrients, improving soil structure and helping to sequester carbon, as CO2, in the soil.

These straightforward techniques can increase yields over time and therefore have the power to boost the prosperity of smaller farmers and increase the amount of food available locally. As yields rise, these farmers have a product they can market, and at the same time are able to take advantage of infrastructure improvements introduced by commercial farms, such as storage, milling, and transport routes to market. The impact of something like accessible storage can be dramatic, as farmers are not forced to sell at harvest time or lose their grain to decay, and can wait to command a better price later in the season.

While double‐cropping and zero tillage have obvious benefits, they are not widely accepted in southern Africa. However, these practices are commonly taught and implemented in western agricultural colleges, and we believe that through forming relationships with local agricultural colleges we can begin to assist in their introduction locally. This type of knowledge transfer could have a significant impact on the sustainable development of the agricultural sector and the wider economy.

Other exciting new technologies include precision farming using a combination of global positioning and geographical information systems (GPS and GIS) and remote sensing data. Soil samples are fed into a computer that generates a map of the varying levels of fertility across a wide expanse of land. Trucks can then be programmed to deposit fertilizer and pesticides tailored to the conditions of a given area, reducing waste and optimizing input usage. Such technologies can also be used in transporting product to market dependably: following shipments and monitoring weight through satellite tracking can offer a level of security and risk management to protect the business, a capability that may be particularly appealing to cautious foreign investors.

Much like mobile phones, these farming practices could have profound social and economic benefits, making a leap forward from mono‐cropping to implementing the most efficient farming techniques being introduced in the developed world. The techniques highlighted here are simple but potentially transformational: introducing soya as a second crop or harnessing the power of natural decay are examples of inexpensive, proven methods that can be transferred successfully from large‐scale commercial farmers to small‐scale farmers. We believe that, as the evidence of their effectiveness mounts among this segment of farmers and these techniques are adopted, the region will grow in importance as a force in the global agricultural sphere.

“We invest in sustainable agricultural ventures in Africa. By acquiring existing brownfield farms in private transactions where leaseholds are purchased from individual owners, we enter into transparent commercial deals. In Zambia, leases are transferred through a process by which we obtain the state’s consent. A typical transaction comprises 2 000 to 5 000 hectares of land; we aim to establish three to five production hubs, each with approximately 10 000 hectares under irrigation.

A commitment to feed Africa is integral to our business model, which focuses on exporting food cross border within sub‐Saharan Africa to meet the growing demand of a continent in which market inefficiencies and poor infrastructure have contributed to high food prices.

In conducting our business, we are committed to following the IFC Performance Standards, which relate to environmental and social practices, and we are poised to introduce local outgrower schemes as well as training and educational programmes, transferring skills and creating jobs,” the company stated in a release.

“We believe in the transformational power of introducing knowledge and financial capital as well as proven approaches that can pave the way to future prosperity for the people of Africa. While solutions to the world’s food crisis will be many and varied, it is our view that expansion of commercial farming in Africa must play a role and that foreign investment into Africa, when done in an ethical and responsible way, should be encouraged,” it adds.