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VOL.3 September 2011
Fulfilling Farming Potential
The unfolding disaster in the Horn of Africa highlights the urgency to develop Africa's Agribusiness industry
by Jessica Frommer

The food crises occurring in the Horn of Africa has shed light on the precarious situation for some populations in Africa while highlighting the urgency to develop the continent's most widespread commodity – agriculture.

An estimated 60 percent of Africans work in agriculture. Agriculture is at the basis of most African economies, providing employment and basic income for millions of livelihoods.

Today, the world should look at Africa and see only one thing – potential. With the number "7 billion" looming large in terms of world population, "act now" has never resonated more significantly.

"If Africa were to invest the total of about $22 billion it spends annually on food imports and food aid in its agricultural sector, it would take the region less than a decade to implement the four proposed agricultural pillars highlighted in the CAADP," said Professor Monty Jones, 2004 World Food Prize Laureate, Executive Director of the Forum for Agricultural Research in Africa (FARA) and EMRC Executive Member.

The Comprehensive Africa Agricultural Development Program (CAADP) has established ambitious targets for Africa's annual agricultural growth based on seven pillars: Enhancing agricultural productivity, upgrading value chains, exploiting local, regional and international demand, strengthening technological effort and innovation capabilities, promoting effective and innovative financing, stimulating private sector participation, and improving infrastructure and energy access.

The policies and agendas set in motion by governing bodies have taken a significant new approach toward achieving sustainable growth – including the private sector. The bulk of Africa's farmers are part of the private sector, acting as small or medium-sized enterprises. Their needs must be part of the global equation.

From the African businessperson's perspective, the message is simple. "We are not looking for aid, we are looking for contacts – business partners. It's as simple as that," said Ramadhan Hashim Khalfan, Director General of Tanzania Trade Development Authority, who expanded his business reach through networking at EMRC events. He met like-minded Indian business people who want to invest in seed research, commercial seed, crop production and value addition.

Once the people with the funding and the people with the projects meet, then an important part of the ground work has already been accomplished. Pamela Anyoti from Uganda got her project known during the EMRC AgriBusiness Forum in Kampala in 2010 and received Swiss Foundation for Technical Cooperation funding, for the production of high yielding cocoa seedlings for her new cocoa project. The cocoa project will involve 12,000 small holders. "This partnership has double weight because it shows the credibility of my approach to developing a business that includes those who are usually excluded from access to farm inputs and secure markets,'' she said.

The dots to unleash Africa's agricultural potential can be connected through partnerships like UNDP ensuring the inclusion of small farmers in large sector value chains and USAID's New Vision framework illustrating the role businesses can play in meeting global food and nutrition needs through accelerated, sustainable agriculture-led growth.

To ensure growth and sustainability, Jones highlights four important issues to tackle: increasing the area under cultivation, raising yields, reducing post harvest losers and increasing the value added. "Countries like South Sudan, DRC (the Democratic Republic of the Congo) and Zambia have a lot of suitable land that is not yet cultivated," he said.

The African agricultural sector is at a turning point. The images coming out of the Horn of Africa of entire communities de-rooted because of famine must not be repeated in the coming years. Therefore, to ensure small farmers are part of the big value chain they must be given access to financing and potential business partners through "Inclusive Agriculture" and "Inclusive Business Models." This is indispensable to ensure sustainable growth.

Idit Miller, Vice President of EMRC International, said, "Getting African businesspeople, international organizations and foreign investors to partner and to simply know about each other's projects and investment possibilities is the first and most important step to start developing the agribusiness sector. Connecting all the dots, bringing like minds and objectives together is what the sector needs."

Africa can be the solution for the globe's growing population. It has the potential to feed itself and feed others. Africa needs the drive that Anyoti, Khalfan and many others have had for the last few years, which means focusing on a business plan and partnering with the right people. In other words, the continent needs to establish inclusive policies and drive private-public sector collaboration.

The writer is Communications Manager of EMRC – an internationally renowned organization providing a platform for Africa's private and public sector to come together - www.emrc.be

 

 

 

 

 

 

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