MAPUTO, Mozambique,** September 9, 2013/ *– *The African Green Revolution
Forum (AGRF) (http://www.agrforum.com) has warned that a Green Revolution
cannot materialise in Africa without a major concerted effort to secure
financing for agricultural production.
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The Forum, which ended on Friday, brought together over 200 delegates from
across Africa and internationally, focused on the critical role to be
played by public-private partnerships and inclusive business models in the
development of Africa’s agriculture.****
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The Forum heard that the global gap in finance for agriculture stands at
US$ 450 billion, an issue which is more acute in Africa than anywhere else.
Evidence shows that only 10% of African smallholder African farmers have
access to the financing they need to expand their production and raise
their income.****
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Irungu Houghton, Convenor of the AGRF, said: “Throughout the African
continent, we are witnessing successful partnerships between the private
and public sectors and smallholder farmers. But these partnerships are
still too rare. We will only be able to transform Africa’s agriculture, and
alleviate food insecurity and poverty, if smallholders have the funds to
boost their crop yields and expand their business.”****
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Dyborn Chibonga, Chief Executive Officer of the National Association of
Smallholder Farmers of Malawi, said: “Some African governments have gone
some way towards addressing affordability and accessibility of production
inputs, but challenges still persist. Each and every year smallholder
farmers are pulled into a downward spiral of taking out high-interest loans
in order to buy farming inputs for the following season. Without access to
credit, smallholders cannot raise productivity.”****
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The AGRF committed to focus over the next year on a number of priority
actions, including:****
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• Ensuring that rising revenues from extractives industries are
invested into the development of agriculture****
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• Reducing corruption in public-private partnerships and designing
business ventures that are transparent, environmentally and socially
responsible****
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• Building the capacity of famers’ associations, finance
institutions and agribusiness agencies to work together****
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• Encouraging governments to offer tax incentives and make
preferential procurement choices for companies that source from smallholder
farmers****
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• Developing inclusive financial models that combine incentives,
reduce debt risk and promote longer-term agribusiness models****
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• Combining incentives, reducing debt risk and promoting
longer-term agribusiness models****
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The Honourable Antonio Limbau, Deputy Minister of Agriculture for
Mozambique, who formally closed the AGRF, said: “We are honoured and
pleased to have hosted this important forum in Mozambique ten years after
the Maputo Declaration. This forum was a valuable opportunity to discuss
practical steps to strengthen capacity and extend the use of modern
technology to increase productivity.”****
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Jane Karuku, President of the Alliance for a Green Revolution in Africa
(AGRA) – a partner in the AGRF – said: “2014 is a critical year for
agriculture, when African governments will be setting investment targets
and plans to develop agriculture over the coming decade. The African Union
has recognised this crucial moment and designated 2014 as the Year for Food
Security and Agriculture. We are delighted to announce that next year’s
AGRF will be co-hosted with the African Union in Addis Ababa in September
2014.”****
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