The African Union’s “Zero Hunger Plan 2025” is launched: What are the advantages and markets of Chinese drip irrigation companies?

1. Release of policy dividends: In-depth analysis of the AU agricultural irrigation subsidy mechanism

In December 2024, the African Union officially launched the "Zero Hunger Action Plan 2025", planning to invest US$12 billion

in upgrading farmland water conservancy infrastructure. According to the AU internal meeting document (2024 Agricultural

Strategy White Paper), African governments will implement a tiered subsidy policy for the purchase of drip irrigation equipment:

the subsidy ratio for sub-Saharan African countries can reach 40%-60% of the total price of the equipment, while the subsidy for

North African countries with extremely scarce water resources (such as Egypt and Tunisia) is as high as 70%. In addition, the AU has

also established a special fund to provide low-interest loans for up to 10 years to small and medium-sized farms.

This policy directly echoes the United Nations Sustainable Development Goals (SDG 2), which aims to increase the efficiency of

agricultural irrigation in Africa from the current 35% to 65% through technological upgrades. Take Ethiopia as an example. The country

plans to add 2 million hectares of drip irrigation area by 2025. The government subsidy covers 70% of the equipment cost. At the same

time, farmers with significant water-saving results will be rewarded with an additional $0.5 per ton of water.

2. List of Top 10 High-demand Countries

According to the internal meeting documents and public data of the African Union, the following is a list of the Top 10 high-demand

countries in Africa, which have the most urgent needs for agricultural irrigation and farmland upgrades:

a. Nigeria: As the most populous country in Africa, Nigeria has a huge demand for agricultural irrigation and farmland upgrades. The

government has introduced a series of policies to encourage agricultural investment, including providing long-term, low-cost land leases.

b. Ethiopia: Ethiopia has developed rapidly in recent years and is known as the economic star of the "Horn of Africa". The government

actively promotes economic reforms, strengthens infrastructure construction, and improves agricultural production efficiency.

c. Kenya: Kenya is the economic engine of East Africa, and agriculture is the pillar of its national economy. The country's market has a

large demand for agricultural machinery, solar products and textiles.

d. South Africa: South Africa is one of the most industrialized countries in Africa, with a complete industrial and financial system. The

country's market has a large demand for auto parts, machinery and equipment, and medical supplies.

e. Egypt: Egypt is an ancient civilization in Africa, with an economy based on agriculture, tourism and manufacturing. The government

is vigorously promoting economic reforms, improving economic efficiency and attracting foreign investment.

f. Algeria: Algeria's oil and natural gas are the pillar industries, and its natural gas reserves rank fourth in the world. The government is

working hard to develop agriculture and manufacturing to reduce its dependence on oil.

g. Morocco: Morocco's economy is based on agriculture, tourism and manufacturing, and has made significant progress in renewable

energy and the automotive industry in recent years.

h. Angola: Angola is an important oil producer in Africa, and in recent years it has also been working hard to develop agriculture and other

industries to achieve economic diversification.

i. Côte d'Ivoire: Côte d'Ivoire is an important economy in West Africa, with agriculture as one of its main industries. The government is

promoting agricultural modernization and improving productivity.

j. Tanzania: Tanzania is an important economy in East Africa, and agriculture is one of its main industries. The government is working

hard to improve infrastructure and attract foreign investment.

Chinese drip irrigation companies mainly benefit from the following points:

a. Technical advantages: Chinese drip irrigation technology has a high technical level and cost advantage in the international market, and

can provide efficient and reliable irrigation solutions.

b. Policy support: The Chinese government has strengthened trade and investment cooperation with African countries through the "Belt

and Road" initiative, providing policy support for drip irrigation companies to enter the African market.

c. Market demand: African countries have a great demand for drip irrigation technology, especially in high-demand countries such as

Nigeria and Ethiopia, where the market potential is huge.

d. Cooperation model: Chinese drip irrigation companies provide customized solutions to meet local market needs by cooperating with

local governments and enterprises.

The African Union's "Zero Hunger Plan" has opened a $5 billion market window for Chinese drip irrigation companies, but it should be noted

that some countries have challenges such as unstable power supply and weak logistics infrastructure. It is recommended that companies

adopt a combination strategy of "technology + finance + localization", using regional hubs such as Egypt and Kenya as fulcrums to gradually

radiate to the entire African market, thereby solving Africa's food security issues and achieving breakthroughs in the internationalization of

their own brands.