An Agricultural Business Comparison of Costa Rica and Sierra Leone

I recently visited Costa Rica and it struck me that not only the vegetation but also the types of plants and agriculture produce is similar to what's available in Africa, particularly West Africa. Costa Rica has managed to use their topography and their environmental and sustainable ecosystem to build an eco-ecotourism and business environment that is helping to contribute to the economy of Costa Rica. It also serves as a good location for businesses with low barriers to entry and investment as well as being a gateway to South America.

I started thinking that I should do a comparison of Costa Rica and a possible similar country in Africa. After doing some research, l feel a comparative country to Costa Rica in West Africa would be Sierra Leone. Why Sierra Leone? Because their topographical make up would support an eco-tourism focused economy. The topographical makeup of Sierra Leone includes a coastal belt of mangrove swamps, wooded hill country, upland plateau, and mountains in the East. Costa Rica has a population of over 5 million people and Sierra Leone has a population of over 8 million people making them similar in population. The land area of Costa Rica measures at over 51,000 square kilometers approximately without taking into account the sea territory and the landmass for Sierra Leone is over 72,000 square miles.

General Investment Overview of both countries

Costa Rica has a favorable investment climate and a business environment that's attractive to many investors and exporters. However, there are some unique aspects to the business culture that can impact how business is conducted in the country. 

Investment Culture in Sierra Leone is diverse and abundant, with opportunities across sectors such as agriculture, telecommunications, and tourism. The government has instituted reforms to improve the business and investment climate. In recent years, Sierra Leone has undertaken several initiatives aimed at creating a conducive environment for prospective investors. These measures include streamlining business registration processes, improving regulatory frameworks, and promoting public-private partnerships and the establishment of the National Investment Board (NIB). However, small and medium-sized enterprises in Sierra Leone still require substantial pre-investment support to become viable impact investment prospects. public-private partnerships.

Business

A permanent residency visa is not needed to start a business in Costa Rica. One can start or buy a business in Costa Rica even if in the country on a 90 day visa.

Before you start a business in Sierra Leone, it is important you know that unlike other countries in the Sub-Saharan Africa region, it takes approximately 12 days for one to start or register a business in Sierra Leone.

Agriculture

Only 3.8 percent of Costa Rica’s GDP came from Agriculture in 2023 which included forestry and fishing. Between 2020 and 2022, 60 percent of Sierra Leone’s GDP came from Agriculture

Healthcare

Costa Rica is known for having one of the best healthcare systems in Latin America and the world. The country provides universal health care to its citizens and permanent residents. There are two healthcare systems, both public and private, that are accessible for expats. The healthcare system in Costa Rica contributes to the high life expectancy and quality of life of its people. The Sierra Leone health care system is organized into two tiers of care: Peripheral Healthcare Units (PHUs) with an extended community health program and secondary care which includes 21 district and three referral hospitals; there are also 45 private clinics and 27 private hospitals, mostly in the Freetown area. Business Culture - Personal relationships are important in business, and negotiations are often made over dinner in a relaxed setting. Decision making - Business decisions are made consensually and involve many people, which can slow down the process. Time management - There's a relaxed attitude towards time, and meetings may be delayed. Bureaucracy -There's a lot of bureaucracy to navigate.

The general business culture of Sierra Leone is characterized by well-defined hierarchies, communication styles, and negotiation practices that emphasize respect, patience, and mutual benefit. The business sector faces challenges due to a lack of proper legal, identity, and credit systems, leading to risk-averse behavior and reduced trust and collaboration.

Resources

10 Facts About Starting a Business in Costa Rica - The Fortunate Investor

Big Markit - Sierra Leone National Tourist Board

Agriculture, forestry, and fishing, value added (% of GDP) - Costa Rica | Data

Costa Rica Business Regulations: Key Points to Know

Costa Rica GDP From Agriculture

Foreign Investment in Sierra Leone: Open and Restricted Sectors Explained

Healthcare in Costa Rica

Investing in Sierra Leone

Universal Health and Preparedness Review (UHPR) - National Report Of  Sierra Leone November 2023

 

 

The Value of Precision Agriculture in Africa - Part II

How much of Precision Agriculture (PA) is being practiced in Africa

The advanced technologies being practiced in precision agriculture (PA) are not used in Africa on a wide scale because they are too costly, and often not available. 

In most parts of Africa, agriculture is practiced predominantly on a small scale. The concept of precision agriculture (PA) in Africa has been described as site specific nutrition management (SSNM); site specific farming (SSF); and climate smart agriculture (CSA).

Site specific nutrition management (SSNM) farming n Africa is moving along slowly specifically on small farm holdings particularly due to the cost of fertilizer and slow adoption of precision agriculture particularly by small farm holdings. Site specific farming (SSF) in the African context is guided by the conditions of a given location. For example in semi-arid environments, the planting densities used by the farmers are low compared to the high rainfall areas. Climate smart agriculture (CSA), focuses on averting the social-economic effects of climate change. 

What are the Benefits of Precision Agriculture (PA) for Growers in Africa

Precision Agriculture (PA) could be especially important for farm growers and the agriculture industry in Africa. 

The benefits of precision agriculture include: 

  • Improved food security: PA enhances water and nutrient use efficiency, leading to better crop yields and timely management of activities like weed control.

  • Cost savings: Both commercial and smallholder farmers in Africa have benefited from reduced input costs due to PA adoption.

  • Environmental impact reduction: PA helps minimize negative effects associated with agricultural practices.

  • Precision Agriculture (PA) helps the farmers be more precise in the resources they put into the soil. 

Challenges of Precision Agriculture (PA) for African Farmers

Advancement in precision agriculture in Africa faces a number of social-economic and technological challenges. 

Social-economic challenges include: 

  • Lack of information, and in some cases inappropriate use of the information. 

Solution: There needs to be more systems in place to collect information from the small farm holdings. In addition, the information from these farms needs to be protected for the farmers and not be used for other purposes by data collection organizations.

  • Lack of information on site-specific nutritional (SSN) requirements; and lack of established agronomic service providers. 

Solution: More research needs to be done to gauge SSN requirements. There also needs to be better ways to measure the requirements for different farms based on the plants they grow as well as looking at more organic alternatives in this method

  • A large percentage of the research for precision agriculture (PA) is being conducted by non-Africans and also there is no research being done on PA in a number of African countries.

Solution: There needs to be more research done by governments; researchers and organizations who are operating and based in Africa to provide a different aspect to the research results.

Technological challenges include: 

  • Lack of machinery including sensors. 

Solution: There may need to be intervention by the governments of the different countries to provide financing for the farmers to be able to buy or lease the right machinery or encourage private investing 

  • Limited access to global navigation satellite systems (GNSSs) devices, geographic information systems (GIS) and remote sensing.

Solution: There needs to be systems that can either be a replacement for these systems or are of lower technology but can still be used in the same way.

Conclusion

Precision agriculture (PA) can be a great system for farmers worldwide and farmer holdings in Africa including the small farmers. 

There needs to be more investment in precision agriculture by African investors, inventors and developers with systems geared more towards the type of farming practiced in Africa at both the commercial and smallholding farms. 

In creating these systems and processes, the developers and data processors do not take into account the cultures and farming techniques that have worked and still work especially for the small farmers.

African governments need to be more involved in creating and implementing favorable policies that will help encourage the development of precision agriculture tools, systems and processes within Africa on a wider and more encompassing scale.

Resources

3rd African Conference on Precision Agriculture

Aspects of Precision Agriculture

Advantages and Disadvantages of Precision Farming

Precision Agriculture and Food Security in Africa

Precision agriculture research in sub‑Saharan Africa countries: A Systematic Map

Remote Sensing in Precision Agriculture