Market Trends of Africa Agricultural Irrigation Machinery Industry
Rising Water Scarcity and Growing Food Demand
Climate change and persistent drought conditions are the primary causes of water scarcity in Africa. This scarcity has led to an increasing demand for water-efficient irrigation machinery in the region. The Global Water Security 2023 Assessment, released during the UN 2023 Water Conference, identified three of the five "critically water insecure" countries in the world as African nations: Eritrea, Sudan, and Ethiopia. Notably, African countries accounted for nearly half of the 114 "water insecure" nations globally. South Africa also faces water scarcity due to a combination of unpredictable climate changes trending towards hotter and drier conditions, declining water tables, and chronic mismanagement of water systems. In South Africa, irrigation-dependent field crops, fruits, and vegetables constitute 33% of the farming income.
Population growth in countries such as South Africa and Egypt is driving increased food demand in the region. Limited land and scarce water resources, coupled with this growing population, are fueling the expansion of the irrigation machinery market. According to Statistics South Africa, the country's population exceeded 63 million in 2024, an increase of 835,513 individuals from the previous year. Similarly, World Bank Open Data reports that Egypt's population rose from 110.9 million in 2022 to 112.7 million in 2023, representing a 1.5% growth rate.
Egypt Dominates the Market
The Egyptian government has implemented various schemes, policies, and projects to support the country's irrigation needs. In 2022, the Central Bank of Egypt launched an initiative to encourage farmers to adopt modern irrigation methods by providing financial support. The bank allocated 55.5 billion pounds for this initiative, allowing farmers to obtain loans through agricultural associations in governorates nationwide, repayable over 10 years.
To meet the consumption needs of its growing population, the government has focused on increasing agricultural land. This includes creating a new agricultural area (New Delta) southwest of the Nile River Delta region. An artificial river was also constructed with the capacity to supply water to approximately 900,000 hectares of farmland. In 2024, the government ordered 75 pumps for the Egypt Phase 2 project, demonstrating its commitment to modernizing irrigation methods in the country.
In 2023, Egypt invested EGP 7.4 billion to strengthen irrigation systems and water operations. As a result, the country leads the region in heavy investments in irrigation machinery and policies that encourage farmers to adopt modern irrigation systems such as drip irrigation, sprinkler irrigation, and pivot irrigation.
