‘Agriculture- Africa’s quiet revolution’

There were several conclusions from the latest Africa Agriculture Status Report launched today at this year’s African Green Revolution Forum (AGRF) in Cote d’Ivoire.

According to the report, agriculture will be Africa’s quiet revolution, with a focus on SMEs and smallholder farmers creating the high productivity jobs and sustainable economic growth that failed to materialise from mineral deposits and increased urbanisation.

Despite 37 percent of the population now living in urban centres, most jobs have been created in lower paid, less productive services rather than in industry, with this service sector accounting for more than half of the continent’s GDP.

Smart investments in the food system can change this picture dramatically if planned correctly.

The top five recommendations from 2017’s AARS report include:

1. Governments need to increase their investments in agriculture and rural infrastructure in line with their 10 per cent CAADP commitment

2. Governments should take a holistic approach to improving the business environment for the entire agrifood system, from farm to fork

3. Smallholder farmers need to be better organised to link to modern value chains

4. Governments need to support the financial sector to meet the unserved financial needs of commercially oriented small farms and food producing SMEs

5. Legislation and regulations that boost regional trade in agricultural products will make a significant contribution to the growth of Africa’s food production sector and have a tangible impact on reducing poverty

The report also urges governments to nurture a globally competitive food production sector through measures such as increasing infrastructure investment in secondary cities and towns, improving the reliability of energy and water supplies, building more wholesale market spaces, promoting open regional trade, identifying and investing in first mover crops and introducing stricter standards for food safety and quality.

The authors also call on governments to stimulate new private public partnerships for more innovative financing and insurance provision which can lead to increased resilience for farmers and their households. While globally agricultural insurance is a $2 billion business, Africa accounts for less than two percent of the market. Other fiscal stimulus measures suggested include improving financial regulations, developing better credit-reporting processes, opening up special economic zones, supporting digital warehouse receipt systems and sharing risk with lenders through credit guarantees and matching funds.

The report points out other new opportunities to target support presented by digital technology such as satellite tracking and big data. These can help locate new high value agri-economic zones and smarter financing and food security polices, especially in the face of climate change.

“Smart support is just as important as scale of support for Africa’s highly diverse group of famers and agribusinesses. To step up their game, businesses needs assistance tailored to distinct groups of viable small farms and agribusinesses at different development stages, rather than blanket support for all,” added AGRA President, Dr. Kalibata.

The report’s authors conclude that although progress is being made, Africa needs to pick up the pace if it is to compete globally and turn itself from importer to exporter by feeding its people with food made in Africa. “Hopefully the prize of a rapidly growing and valuable market for food made in Africa will spark widespread political will and attract the best business talent to build a high value food sector,” said Peter Hazell. “This private public partnership will be essential to provide the trinity of high productivity employment, sustainable economic growth and food made in Africa for Africa and the world.”