twitter RSS Feed linkedin acp contact

Agribusinesses and African smallholders Seize US$1 trillion food market: AASR

The recent Africa Agriculture Status Report (AASR) has demonstrated that the power of entrepreneurs and the free market is driving Africa’s economic growth from food production, with the food production in Africa expecting to reach more than US$1 trillion per year by 2030

SMEAfrica should focus on SMEs and smallholder farmers for creating the high productivity jobs and sustainable economic. (Image source: Christopher Griner/Flickr)

The report has been launched at African Green Revolution Forum (AGRF) in held Cote d’Ivoire from 4-8 September 2017.

According to the report, agriculture will be Africa’s quiet revolution, with SMEs and smallholder farmers creating high productivity jobs and sustainable economic growth. More number of jobs has been created in lower paid and less productive services rather than in industry. Planned investments in the food system can created even more employment opportunities, said the report.

Commenting on this year’s report findings, Dr Agnes Kalibata, president of the alliance for a green revolution in Africa (AGRA), said, “Africa has the latent natural resources, skills, human and land capacity to tip the balance of payments and move from importer to exporter by eating food made in Africa. This report shows us that agriculture involving an inclusive transformation that goes beyond the farm to agri-businesses will be Africa’s surest and fastest path to that new level of prosperity.”

Kalibata explained that in order to succeed, Africa requires an approach to link small farms to agribusinesses, creating extended food supply chains and employment opportunities. 

The report has further highlighted the importance of domestic food production to meet the growing demand of the people. Currently, Africa relies on imports to meet the demand. According to the report, this presently amount to US$35bn per year and is expected to cost US$110bn by 2025, unless Africa improves its food productivity.

The report acknowledges the role of private sector for the transformation of food system. Peter Hazell, technical director of the report, stated, “Impressive value addition and employment is being created by SMEs along value chains in the form of increased agricultural trade, farm servicing, agro processing, urban retailing and food services. Large agribusinesses like seed companies, agro processors and supermarkets are also playing an increasing role in the food value chain in many regions.” 

The study has also said that government support is needed for stimulating and guiding the transition. Governments needs focus on creating infrastructure such as improving 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 report has further pointed points out the need for digital technology such as satellite tracking and big data to help to locate new high value agri-economic zones and smarter financing and food security polices, especially in the face of climate change.


LATEST NEWS IN Agriculture

USAID and NASA renew partnership to address development and humanitarian challenges

USAID and NASA renew partnership to addr…

On 4 November, Administrator Samantha Power signed a Memorandum of Understanding (MoU) between the U.S. Agency for International Development (USAID) and the National Aeronautics and Space Administration (NASA) to renew...

Norway promises top-up contribution of urgently needed climate finance

Norway promises top-up contribution of u…

On 9 November 2022, Norway, as part of a commitment to triple its support to climate adaptation by 2026, has pledged an additional US$9.5mn contribution of urgently needed climate finance...

Better Cotton signs partnership agreement with IDH and CotonChad

Better Cotton signs partnership agreemen…

Better Cotton recently signed a multi-stakeholder Letter of Intent to participate in the landscape approach, developed with local stakeholders in Chad in conjunction with IDH, intending to work towards improving...

NFU president Minette Batters appointed as ambassador of Farm Africa

NFU president Minette Batters appointed …

Farm Africa, a charity that promotes sustainable agricultural practices, strengthens markets and protects the environment in rural eastern Africa, has announced the appointment of NFU president Minette Batters as an...

AfDB grants US$63.38mn loan to implement agro-processing project in Senegal

AfDB grants US$63.38mn loan to implement…

The board of directors of the African Development Bank (AfDB) Group in Abidjan has approved a loan of US$63.38mn to Senegal to implement the Agropole-Centre agro-industrial processing zone project

Farming innovations which help conserve nature and create jobs

Farming innovations which help conserve …

On World Food Day, farmers in the UK and globally showed how innovative farming methods and techniques can improve lives, help meet global climate targets and produce food without harming...

Prev Next

OTHER RELATED ARTICLES - Agriculture

Mobile phones 'transforming' Kenya’s livestock sector

Mobile phones 'transforming' Kenya’s liv…

Farmers and veterinarians across Africa are using mobile phones to get updates on livestock diseases and to receive web access

Land degradation 'costing 12 per cent of Africa's agricultural GDP'

Land degradation 'costing 12 per cent of…

A new United Nations report has revealed that Africa may be losing up to 12 per cent of its agricultural GDP due to land degradation

An underwater farming revolution with digital twin solutions

An underwater farming revolution with di…

Nemo’s Garden, a startup focused on sustainable underwater cultivation of crops, has come up with an underwater greenhouse Resembling a bloom of giant jellyfish anchored to the ocean floor, these large...

Nigeria to target five million farmers for GES programme

Nigeria to target five million farmers f…

The Nigerian minister of agriculture has said that his ministry is to enrol more than five million farmers in its Gross Enhancement Support (GES) programme

Africa and Asia take joint global initiative to diversify staples

Africa and Asia take joint global initia…

Leading agriculture organisations from Africa and Asia have collaborated on major staples products

Wheat crops grown with excessive nitrogen fertiliser may increase the risk of celiac disease

Wheat crops grown with excessive nitroge…

According to a study published in the journal Foods, conducted under the leadership of Josep Peñuelas, CREAF and CSIC researcher, and Jordi Sardans, another CREAF researcher, with contributions from specialists...

IITA focussed on boosting Tanzanian cassava crops

IITA focussed on boosting Tanzanian cass…

Tanzania's minister of agriculture, food security and cooperatives, Christopher Chiza, has said that cassava will play a major role in improving the lives of farmers in the country

Rwandan farmers participate in crop insurance scheme

Rwandan farmers participate in crop insu…

Up to 50,000 farmers have so far participated in Rwanda’s government-backed Hinga Urishingiwe crop insurance scheme, the country’s Ministry of Agriculture and Animal Resources has revealed

Land acquisition - a fair deal?

Land acquisition - a fair deal?

SOUTH AFRICAN FARMERS are considering concessions in the DR Congo, the Chinese have expressed interest in the biofuel potential of Angola’s run-down eucalyptus plantations, and the sovereign wealth funds of...

African Food Security Prize launched to stop the spread of fall armyworm

African Food Security Prize launched to …

Feed the Future has opened its call for applications for the Fall Armyworm Tech Prize, which offers to fund up to US$400,000 in digital solutions that aim to help stop...

Tanzanian herders benefit from mobile data technology

Tanzanian herders benefit from mobile da…

Tanzania has set-up a new system to enable pastoralists and cattle traders monitor real-time market information on livestock, while keeping them informed of weather conditions which may affect their animals’...

BASF launches ‘Farming, the Biggest Job on Earth’ campaign

BASF launches ‘Farming, the Biggest Job …

BASF has launched a campaign titled ‘Farming, the Biggest Job on Earth’ to address the growing demand for food on dwindling land

Prev Next