AfDB President Akinwunmi Adesina
The African Development Bank (AfDB) has called on global partners to join hands to lift one billion people worldwide out of hunger.
It said it was leading the way by investing US$24 billion in African agriculture over the next 10 years in the largest such effort ever.
“We are not winning the war against global hunger,” Bank President Akinwumi Adesina told an agriculture conference at Purdue University in Indianapolis.
“We must not get carried away,” he added, referring to statistics showing a decline in the global population living on less than two dollars per day.
In reality, the number of hungry people in the world had increased from 777 million in 2015 to 815 million in 2016, he said citing the latest World Food Security and Nutrition data.
Adesina told the audience that included researchers, implementing organizations, business leaders, policymakers and donors that simple technical and scientific methods were already making a whole difference to farm yields and income in Africa.
While such technologies to deliver Africa’s green revolution exist, they are mostly just sitting on the shelves, he said.
“The release of water efficient maize varieties now allows farmers to harvest good yields in the face of moderate drought,” he noted.
“Today, rice varieties exist that can give yields of 8 tonnes per ha. Cassava varieties exist with yields of up to 80 tonnes per ha. Heat tolerant and disease resistant livestock and technologies for ramping up aquaculture exist.”
Bank experts put current comparative yields at 1.5-2 tonnes per ha for rice and 10-15 tonnes per ha for cassava.
What was needed urgently was deployment of supportive policies to ensure technologies are cascaded down to millions of farmers.
“All Africa needs to do is to harness the available technologies with the right policies and rapidly raise agricultural productivity and incomes for farmers and assure lower food prices for consumers.”
The Bank has launched its Technologies for African Agricultural Transformation (TAAT), a $1 billion initiative to extend the use of farm technologies. TAAT is currently engaging seed companies, public and private entities, and financial institutions in 27 countries to make technology available to a total of 40 million African farmers.
Combining targeted subsidies for farmers with a market-based system for rapidly expanding access to financing for farmers and agricultural value chains is the fastest way to get many people out of poverty to a sustained pathway for economic growth, Adesina added.
“It was here, as a graduate student, that I began the journey of searching for ways to get technologies into the hands of millions of farmers,” he said.
Adesina was to go on to make a huge impact on the transformation of agriculture in Africa, including implementing game-changing policies in his years as Nigeria’s Minister for Agriculture and Rural Development before taking up his post at the Bank in September 2015.
Adesina said the situation in Sub-Saharan Africa needed particularly urgent intervention due to the ravages of climate change.
The International Food Policy Research Institute estimates that Africa will add 38 million to its number of hungry people by 2050 as a result of climate change. The Institute forecasts that Africa will experience major food shortages by 2020 and beyond, while malnutrition will be on the rise over the next 20 years.
The Bank’s ongoing initiatives had the objectives of growing income for farmers, stabilizing prices for staple crops, reducing losses and stimulating multiplier effects in local economies.
With its Staple Crop Processing Zones and other initiatives, the Bank is demonstrating how this can be done.
“The African Development Bank put feeding Africa as one of its topmost priorities when it launched its Feed Africa strategy in 2015 and is investing $ 24 billion in agriculture for Africa over 10 years – the largest ever such effort,” the Bank President said.
Adesina called for global partnerships to establish Staple Crop Processing Zones across Africa.
“The SCPZs will provide several advantages for rural economies. They will create markets for farm produce. Raw materials will no longer be moved out of rural areas, but as finished value-added products. Post-harvest losses will be substantially reduced. Well integrated agricultural value chains will develop, with supportive logistics, especially warehousing and cold chains,” Adesina added.
The African Development Bank has already started investments to develop these SCPZs in a number of pioneering African countries, including Ethiopia, Togo, Democratic Republic of Congo and Mozambique. It expects the processing zones to be active in about 15 countries in the near-term. (NAN)
CAP-F Partners Pledge Support for Private Sector Agribusiness Investments in Nigeria
CAP-F Partners and NABG Officials (Image: Supplied)
The food situation in Africa is quite dire but full of potential. According to the United Nations Conferences on Trade and Development (UNCTD), between 2016 and 2018, the continent imported about 85% of its food from outside the continent. This cost the continent about $35 billion. What’s worse? This cost is expected to rise to $110 billion by 2025. The impact of this is two-fold; African economies are unable to guarantee food security for the continent and are unable to take advantage of the global food market, which is expected to reach $11 trillion by 2030.
To achieve Africa’s agricultural potential, The Grow Africa Partnership was jointly founded in 2011 by the African Union, African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) and the World Economic Forum. Grow Africa’s mission is to increase private sector investment in Agriculture. Grow Africa’s flagship programme is the Country Agribusiness Partnership Framework (CAP-F), a mechanism for establishing effective public private engagement to create agribusiness partnerships in a country. CAP-F facilitates the alignment of private sector investments commitments with public sector policy/infrastructure obligations and provides a mechanism for all parties to hold each other accountable for their obligations. CAP-F’s footprint currently spans 16 African countries.
During a recent CAP-F private sector stakeholder sensitization engagement, CAP-F’s partners, including AUDA-NEPAD, Alliance for a Green Revolution in Africa (AGRA) and Nigeria Agribusiness Group (NABG), pledged to work with multi-stakeholder agriculture value chain platforms to promote private sector investments that can improve agriculture productivity in Nigeria.
In his welcome address, Emmanuel Ijewere, Vice President, Nigeria Agribusiness Group (NABG) expounded on the context of a private-sector led agribusiness investment ecosystem in Nigeria. “Agriculture has the credentials to be Nigeria’s most attractive investment option. It is very important that stakeholders across the public and private sectors work together to align their interests and expectations. This is the value that CAP-F brings to the table,” Ijewere noted.
Also speaking at the engagement, Ibrahim Gourouza, Chief Operating Officer of Grow Africa noted that the optimised participation of private sector investors will help build more sophisticated agriculture value chains across Africa. This tasked Grow Africa with the responsibility of creating a private-sector inclusive agriculture investment ecosystem through CAP-F. On the design principles around CAP-F, he noted, “One of CAP-F’s key success factors is that it is owned by countries and anchored on existing structures. With this in mind, in collaboration with stakeholders, we selected NABG as the anchor of CAP-F coordination in Nigeria.”
He noted that Grow Africa is committed to CAP-F in Nigeria in a number of ways. “Grow Africa has provided the CAP-F Secretariat in Nigeria with a business model that has generated close to $500m in private sector investments in Africa across 6 countries and in 5 value chains. This will be an invaluable tool for business deal generation in Nigeria. We will continue to provide technical assistance for the team in Nigeria. While we have attracted funding from AGRA for the CAP-F Secretariat in Nigeria, we will work to expand the partnership support to ensure a more sustainable CAP-F implementation in Nigeria. Finally, we will provide a database of financiers who we will connect to provide sector deals in agriculture in Nigeria,” Gourouza noted.
The CAP-F business model focuses on collaborating with multi-stakeholder platforms across agriculture value chains in the country (existing and new platforms) and the development of business cases to identify investment opportunities in these value chains as well as inhibitors to these investment opportunities. The business model then creates matchmaking opportunities between various stakeholders, which culminates in a term sheet that aligns the commitments and expectations of all stakeholders from those investment opportunities. These term sheets are then taken from commitments on paper to actual investments that are concluded. The final stage of the business model is a mutual accountability and knowledge sharing activity, where updates on private sector investments are presented to the African Union.
CAP-F’s activities in Nigeria are funded by AGRA. In its address, the funders, represented by David Adama, Senior Programme Officer, noted that the engagement with private sector stakeholders is extremely important in driving agricultural transformation in the country. He stated, “CAP-F provides an opportunity for government and the private sector to engage on some of the opportunities that have been identified through the National Agriculture Investment Programme (NAIP) in order to know where private sector investments are necessary. This is particularly important, given the current challenges around public sector investments. AGRA is happy to work closely with Grow Africa and NABG in Nigeria to facilitate this.”
CAP-F Partners is also critical if Nigeria is able to move its millions of smallholder farmers into agripreneurs, who can actually create wealth through agriculture.
Climate change report shines spotlight on Africa’s agriculture potential
It seems almost incongruous to talk about the opportunity that exists in ensuring the world’s food security by bolstering Africa’s agricultural output when the very pressing and public crisis of climate change could be its undoing.
Particularly in the run up to COP26 and the “reality check” that came with this week’s release of the Intergovernmental Panel on Climate Change (IPCC) Six Assessment Report, it is clear the entire African continent is “highly exposed” to climate extremes, at a relatively “high level of vulnerability”.
With over two thirds of Africans deriving their livelihood off agriculture, climate change-led crises like droughts, floods and cyclones continue to threaten the continent’s economic growth, employment, and food security. And yet, ensuring Africa’s agricultural resilience would not just help Africa. It’s essential for ensuring global food security.
What’s more, these climate-led natural disasters have the greatest and most disproportionate impact on small- to medium-scale farmers, comprising as much as 80% of Africa’s agricultural output, from maize and wheat to rice, cassava, and sorghum.
“The UN Report confirmed that climate change is intensifying the water cycle and affecting rainfall patterns, bringing more intense rainfall and associated flooding, as well as more intense drought in many regions,” says Malvern Chirume, African Risk Capacity Limited Chief Underwriting Officer.
“These African farmers are the heart of the continent’s agriculture and are at the mercy of climate change events completely out of their control,” Chirume adds.
Established in 2014, ARC Limited provides natural disaster insurance relief to African countries which have joined the sovereign risk pool.
Along with its partners, which provide premium support, the insurer has already paid over US$65m to seven African countries to provide drought relief and address the economic concerns these countries’ most vulnerable citizens face.
Responding to the climate crisis
Traditionally, countries have responded to climate change-led disasters such as droughts or floods by raising funds for emergency relief. This approach is time-consuming and inefficient.
“It takes far too long for African countries to mobilise the immediate resources they need for relief efforts, to save lives and livelihoods. Our role at ARC Limited is to work with countries to prepare them for the risk exposure they have and how to respond swiftly to climate-related food security emergencies. This includes helping them to establish a rainy-day fund which pays out swiftly, before the problem has become worse, and more funding is needed.”
The ARC Limited model, built on parametric insurance (pre-specified pay-outs based upon a trigger event), has been highly successful, says Chirume.
“We have to date paid out close to $65 million dollars in claims. When one considers that every dollar in insurance pay-outs saves US$4 dollars, this makes the cumulative economic impact around US$240 million. With those funds, we’ve helped more than 5.9 million people whose livelihoods have been affected by climate change impacts,” Chirume explains.
While parametric insurance against natural disasters has enormous potential for the agricultural sector, it has a further economic impact. Because agriculture makes up such a significant portion of the continent’s economy, a downturn caused by a climate shock will echo through the broader economy of any nation affected.
This can bring an economic downturn, a lack of funding for key infrastructure and services at government level, and a loss of jobs as farmers struggle to recover. There is also evidence of migration away from areas experiencing drought, which can have a long-term impact on the regional economy.
Organisations such as ARC Limited have an essential role to play in this way in protecting agricultural value chains and the economies of and employment in Africa. “Our role is to help mitigate and manage the risk, building resilience and ensuring the African country is able to bounce back sooner after a natural disaster,” says Chirume.
With the negative impacts of climate change increasing and their potential to devastate the agricultural sectors and food security of African countries, it has become more important than ever to put sustainability at the heart of interventions.
“Creating an environment that limits the impact of climate shocks on the agricultural sector is about more than just securing economic transformation. At the heart of this investment is the need to ensure basic food security for the continent and the world,” says Chirume.
In its Sustainable Development Series, the World Bank says the African continent could play a leading role in ensuring food security for the earth’s estimated 9 billion people by 2050.
According to McKinsey, Africa’s full agricultural potential remains untapped. It determines that Africa could produce two to three times more cereals and grains, which would add 20% more cereals and grains to the world’s current output of 2.6 billion tons.
Given Africa’s productive potential, the continent could be a key contributor to feeding the world in the future. But to fully realise that potential will require overcoming many obstacles, including how it deals with the impact of climate change on agriculture and food security.
“We need broader collaboration between private and public sector to solve the climate change disaster response problem our continent faces. The problem is so big, that all of us have a role to play,” says Lesley Ndlovu, ARC Limited CEO.
With the support of the United Kingdom and German Government, ARC Limited has been equipped to help the member states of the African Union reduce the risk of loss and damage caused by extreme weather events affecting African populations.
“But there’s so much more work that still needs to go into reaching as many people as possible to help build the resilience of local communities and ensure they have the means to bounce back whenever they are impacted by a natural disaster,” concludes Ndlovu.
World Poultry Foundation (WPF) launches video series to help Africa’s farmers improve poultry production
With poultry increasingly a focus for emerging farmers across Africa, the US-based World Poultry Foundation (WPF) has released a series of training videos to help farmers reduce waste and optimise profits.
Feed accounts for up to 70% of the costs of raising poultry, so proper feeding techniques enable farmers to reduce waste, cut production costs and raise healthier birds, says WPF. Water is equally important in poultry farming, with proper water management crucial for healthy birds.
WPF’s training series, with four videos dedicated to production, explains how farmers should store feed, proper feeding of poultry and how to prepare and manage zones of comfort to encourage proper brooding for chicks. The videos also explain the importance of litter in helping to prevent common diseases to improve production and returns.
World Poultry Foundation CEO Randall Ennis says the video series has been developed to address the most common challenges faced by emerging poultry farmers across Africa. “By applying best practice poultry farming methods, farmers can significantly increase their production, their incomes, and the nutrition available to their families and communities,” he says.
The training videos, as well as free checklists and worksheets, are available here
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