Agriculture to the Rescue

　　This October, the AgriBusiness Forum 2013 takesplace in Kigali, Rwanda, co-hosted by EMRC, an internationalnon-profit organization that promotes sustainable developmentin Africa, and the Ministry of Agriculture and AnimalResources of Rwanda. To delve deeper into the role thatagribusiness is playing in sustainable and inclusive growth inAfrica, ChinAfrica spoke to EMRC Senior Program Manager,Caterina Giuliano. Answers edited for space.

　　ChinAfrica: How important is developing Africa’sagricultural sector for the continent’s economicgrowth?

　　Caterina Giuliano: The African continent is fast becominga major global economic force, with the agricultural sectorplaying a significant role in this trend. With no less than sixof the world’s 10 fastest growing economies over the pastdecade, Africa is attracting increasing investment, reaching$55 billion in 2011. The strategic role of agriculture in Africa’ssocial and economic development cannot be overstated.

　　The sector accounts for 32 percent of the continent’sGDP. Agriculture is the backbone of most African economies.

　　It employs around 60 percent of Africa’s labor force and assuch, inclusive growth in agriculture is key to poverty eradicationand sustainable human development in the region. Inother words, agriculture is critical for Africa.

　　This year’s theme for the AgriBusiness Forum is“The Agri-Food Sector: A Catalyst for Sustainableand Inclusive Growth in Africa.” How can Africa’sagri-food sector be made sustainable?

　　For the agri-food sector to be sustainablethere are some keyessential policies which must be adhered to. Sustainabilityalso means inclusivity - which means linking small farmersto large farming conglomerates whilst sharing accessto markets. In addition, the agri-food sector is not a sectorreserved solely for farmers; all the players in the value chainmust be taken into account: input suppliers (seed, fertilizer,machinery), services in packaging, processors, marketers,transporters, extension and food services, financiers andothers involved in the agribusiness value chain.

　　What are the current challenges facing Africa inrelation to attracting investment into the Agri-Food sector?

　　For investment to occur there needs to be an active privatesector. To have an active private sector there must be acohesive and favorable business climate. Parallel to this, themost important challenge for governments is how to makegrowth inclusive, in other words, how to create employmentopportunities and ensure that growthbenefits all sections of society, especially thepoor (at the bottom of the pyramid).

　　It is common knowledge that Africa’s agriculturalsector is faced with dramatically lowlevels of productivity coupled with high ratesof post-harvest losses. Once small farmers and farming communitiesmanage to establish stable growth and governmentsprovide sustainable policies for these communities,then investors, be it regional or foreign, will be more inclinedto invest. In addition, political stability and sound, corruptfreeinstitutions are key factors to attract investors.

　　Investors look at the basics: infrastructure, stability, potentialfor growth, a trained youth population and disposableincome. Without these there is no real incentive to considerreal long-term investments.

　　How can small farmers/women farmers be involvedin growing the Agri-Food sector?

　　I would suggest that looking at (addressing) the lack of accessto finance, the lack of access to markets, lack of properinfrastructure such as roads, transport and the lack of accessto cost effective appropriate technology should be a toppriority.

　　Small farmers must be included in the larger scaleprojects and in national and regional agricultural policies.They are the backbone of the agri-food sector. If we cannotunderstand their needs and if we cannot provide them withbasic elements to get their businesses off the ground, thenthe entire sector will not be able to achieve its full potential.Their exclusion within the value chain will hamper thegrowth of agriculture.

　　What needs to be done about African countriestrading agricultural products amongst themselvesto manage the continent’s food security?

　　One of this year’s EMRC Africa Finance & InvestmentForum’s key focus points was how to increase regional andintra-regional trade within Africa. With intra-regional tradeconstituting only 11 percent of the continent’s total tradeflows, there is huge untapped potential which can be realizedby continuing to remove trade barriers, and buildingregional trade blocks, notably by improving infrastructureand reducing restrictions on the movement of goods andservices between neighbors and regions. The private sectorwill be a key driver for these developments. Efforts mustalso be made in terms of financing and providing adequateinroads for millions of Africans wanting to grow their businessesand trade with each other.