The paradox in sustaining agricultural transformation in Africa
As African and global leaders meet in Nairobi for the 6th African Green Revolution Forum to craft new polices and make commitments in transforming the agriculture sector the continent is losing about $4 billion to post harvest losses every year and as a result, its annual import bill is $35 billion and projected to $100 billion by 2030.
Besides a decline in the poverty rate and prevalence of undernourishment in sub-Saharan Africa (SSA) between 1990–1992 and 2014–2016, the total number of undernourished people continues to increase with an estimated 217.8 million in 2014–2016 compared to 175.7 million in 1990–1992.
“This is money that is meant to fuel Africa’s growth,” said the International Fund for Agriculture Development President Konayo Nwanze.
“For decades, we have wasted opportunities and wasted our potential as a continent. Hundreds have been left in poverty. Food security is a great concern,” said the 2016 Africa Food Prize winner in his acceptance speech at the sidelines of the 2016 African Green Revolution Forum (AGRF) in Nairobi.
“Africa’s transformation must begin and end here not in conferences with developmental partners. Development is not what we do for people, but development is what people do for themselves,” he added.
According to Kanayo, the losses are also attributed to market inefficiencies and bottlenecks in the food value chain.
Akina Desina, President of the African Development Bank says,” It’s time for Africa to feed itself. The $35 million Africa spends on food imports is a huge burden.”
According to this year’s Africa Agriculture Status Report (AASR), launched in Nairobi, ensuring that African farmers get more from post-harvest to markets requires at least three interrelated solutions, namely: improved farm productivity to close the huge yield gap across all commodities and across African countries with a focus on more effective agricultural research and extension programs; raising smallholders’ ability to generate marketable agricultural surplus production, especially for food crops—including through reducing harvest and post-harvest losses; and investing in physical infrastructure to improve smallholders’ market access conditions.
Africa Development Bank (AfDB) says financing agricultural value chains to contribute to Africa’s agricultural transformation will require massive resources. As part of its “Feed Africa” Strategy for African Agricultural Transformation, AfDB estimates that the transformation of selected key value chains will require approximately US$315–400 billion over the next decade. “This is the amount required to support critical needs such as infrastructure, expanded finance, and improving the general business environment, and to ensure inclusivity. Such an investment, to be made using public and private capital, but more so private capital, is likely to create annual revenue opportunities worth about US$85 billion per year by 2025.”
Further, the IFAD President said Illicit financial flows out of Africa have reached $70 billion in 2015 a rise from the $50 billion reported in 2014 having devastative impact on the continent’s development and governance.
However, the Oxfam Pan Africa Programme (PAP) in its three-year strategic plan that ends in 2017 on the African economic front, the ‘Africa Rising’ rhetoric has emerged from celebrating the economic growth that Africa has been experiencing with growth rates of 5.4% in 2010; 5.2% in 2011; 5.0% in 2012 and its growth prospects are expected to remain strong at 4.8% for 2013 and 5.1% for 2014.
“However this economic progress has neither been inclusive, nor brought food security, jobs or sufficient levels of poverty eradication. Rather, it has brought excessive inequalities in the distribution of assets such as land as well as the use of public services, such as education and health.”
It says Resources that could potentially be generated nationally and continentally from the extractives sector and by increasing value-addition industries are underutilised by preferential trade agreements, illicit financial flows, and lack of investment in essential services, agricultural development, infrastructure and technological development. It is estimated that Africa lost between US$1.22 – 1.35 trillion in unrecorded illicit financial outflows between 1980 and 2009.
Kanayo says, “Agriculture development alone cannot transform nations, it requires the protection of rights to the most vulnerable. Not by the 60 year old famers but by women and youth who need to be provided with opportunities, resources and hope.”
Kenya’s President Uhuru Kenyatta during the forum acknowledged the importance of the sector as more effective at reducing poverty than any other sector.
“Growth in agriculture is up to 11 times more effective at reducing poverty than growth in any other sector. And we recognize that until this s