By Edson Baraukwa | Africa Guardian
In a bid to build healthier, more inclusive, sustainable, resilient, and equitable food systems in Africa, AGRA, in collaboration with The Africa Food Systems Forum, has launched the 2024 Africa Agriculture Status Report titled “Harnessing the Private Sector for Food Systems Transformation in Africa” in Kigali, Rwanda. This launch comes amidst concerns that climate change, inadequate financing, and poor infrastructure may exacerbate existing inequalities within global trade systems, significantly affecting Africa’s agrifood landscape.
The 2024 forum focuses on innovation, acceleration, scaling, and sharing lessons to advance Africa’s food systems. The event brought together nearly 5,000 stakeholders, including world leaders, investors, academia, farmers’ organizations, and the private sector, who collectively called for greater collaboration among governments, development partners, and private entities. Key priorities include investment in infrastructure, support for micro, small, and medium-sized enterprises (MSMEs), and the implementation of effective policies with an emphasis on youth and women leadership.
The forum addressed regional and global challenges while highlighting the significant role of MSMEs in transforming food systems. This year’s gathering aims to accelerate progress towards achieving the Sustainable Development Goals (SDGs) in Africa by 2030 by fostering healthier, more inclusive, and resilient food systems.
AGRA President Dr. Agnes Kalibata emphasized the report’s insights, stating, “The Africa Agriculture Status Report 2024 highlights the transformative role of MSMEs in shaping Africa’s agrifood landscape. By harnessing the power of the private sector, we can drive meaningful food systems transformation and achieve sustainable growth.” She further stressed the importance of understanding the private sector’s influence and urged increased collaboration between governments and businesses to address challenges and seize new opportunities for sustainable development.
The report also points to a shift toward more inclusive agribusiness investments by medium and large-scale companies, with a growing emphasis on integrating smallholder farmers and improving rural livelihoods. This trend is driven by the recognition of smallholders’ crucial role in agricultural productivity and food security, supported by programs that provide better seeds, modern farming techniques, and financial services, as well as improved rural infrastructure such as roads, storage facilities, and market access.
Case studies featured in the report showcase how investments in cash crops, infrastructure, and digital technologies are promoting diversification and enhancing export growth. For instance, in Malawi, investments in groundnut production, bolstered by new seed varieties and processing capabilities, have strengthened local agriculture and expanded export markets. Nigeria has revitalized its cocoa sector through strategic investments, while Ghana’s AgroCenta mobile platform has revolutionized agriculture by providing farmers with market information, credit access, and better input distribution. Kenya’s focus on macadamia nuts and digital platforms has positioned it as a leading exporter despite regulatory and market challenges.
Digital technology is also transforming agricultural value chains by improving access to inputs, credit, and market information. Platforms such as M-Kulima and M-Pesa in East Africa enhance transaction efficiency and input distribution, while digital tractor leasing services like Hello Tractor increase mechanization accessibility for smallholder farmers. Tanzania’s agro-industrial parks have advanced food processing and value addition, fostering job creation and food security, while Zambia’s investments in veterinary services and market access have boosted its livestock sector, enhancing meat and dairy production and expanding export opportunities.
The report reveals that the private sector drives around 80% of Africa’s food economy, with MSMEs managing approximately 85% of the agrifood value chains. It underscores the need for targeted support to enhance these enterprises’ roles in promoting food security and economic growth. Key drivers of MSME growth include urbanization, rising food consumption, and changing dietary patterns, with urban areas presenting significant market opportunities due to increased demand for diverse food products.
Despite these opportunities, MSMEs face numerous challenges, including inadequate infrastructure, limited access to finance, and regulatory barriers. The report calls for targeted investments in infrastructure, improved financial access, and streamlined regulatory processes, alongside a coordinated agro-industrial policy strategy to support MSMEs. It also highlights that MSMEs provide up to 60% of employment in some regions, underscoring their vital role in the agrifood sector.
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