It was no surprise that agriculture featured so prominently at the World Economic Forum on Africa in May. The African Union had already declared the 2014 to be the Year of Agriculture and Food Security in Africa, marking 10th Anniversary of the adoption of the Comprehensive Africa Agriculture Development Program, known as CAADP.
Now the Africa Union’s commitment to agriculture is again playing out during their 23rd summit June 20-27, with the theme: “Agriculture and Food Security in Africa.”
The African Union summit comes on the heels of a consensus of panelists at the closing plenary of the 24th World Economic Forum on Africa on May 9 that agriculture can deliver economic growth but access to funding, infrastructure improvements and a change in the perception of risk are required.
“I want us to drive quality, inclusive growth that creates jobs,” said Ngozi Okonjo-Iweala, Coordinating Minister for the Economy and Minister of Finance of Nigeria at the session. “Agriculture matters and is three times as effective in reducing poverty. It is important for young people to understand that farming is ‘cool,’” she added.
With the right infrastructure, enormous growth can be achieved from agriculture, said Hendrik du Toit, Chief Executive Officer, Investec Asset Management, United Kingdom added. “This is where long-term capital is needed if you want to exploit the agri-business revolution. One of the most momentous changes from a business point of view is that Africa is integrating itself, particularly via China.”
The World Economic Forum’s Grow Africa Initiative partners doubled their commitments for agriculture and food security to $72 billion. To date, $970 million of the fund have resulted in 33,000 new jobs and supported for 2.6 million small farmers.
Africa Union Tackles Food Security
The 23rd Africa Union Summit is taking place June 20-27 in Equatorial Guinea’s capital city of Malabo with the theme: “Agriculture and Food Security in Africa.” The hope is that the conference will serve as a conduit for countries seeking commitments to increase and improve agricultural production.
Agriculture and food security have been part of the African Union’s past summits in Durban, South Africa March 2014, and the Special Conference of Ministers of Agriculture and Fisheries April 28 – May 2, in Addis Ababa, Ethiopia.
During those meetings, issues such as agricultural productivity; strategies to combat poverty; creation and strengthening of agricultural associations; promotion of trade in agricultural products; and employment opportunities for young people in rural areas have taking center stage.
Among the attending dignitaries the current summit will be United Nations Secretary General, Ban Ki-moon in support of the UN’s work in food security and the fact that on November 22, the United Nations Food and Agriculture Organization launched the 2014 International Year of Family Farming.
In a June 19 open letter to the Africa Union Heads of States, Kanayo Nwanze, President of International Fund for Agricultural Development, notes that “More than 10 years have passed since the Maputo Declaration, in which you, as African leaders, committed to allocating at least 10 per cent of national budgets to agriculture and rural development – key sectors in the drive to cut poverty, build inclusive growth and strengthen food security and nutrition. Today, just seven countries have fulfilled the Maputo commitment consistently, while some others have made steps in the right direction. Ten years is a long time to wait. In less time I have seen projects turn desert into farmland.”
In the letter, Nwanze asks the African Union leadership: “Don’t just promise development, deliver it, make it happen now. Make real, concrete progress toward investment that reaches all Africans. Investments that prioritize rural people.”
International Support
One fact that emerged at the World Economic Forum on Africa is that while Africa has 60 percent of the world’s arable land, Foreign Direct Investment flowing into Africa’s agribusiness is only 7 percent of the share for all developing countries. Asia gets almost 80 percent.
But China seems to be taking Africa seriously.
At the Forum it was revealed that China’s Foreign Direct Investment in Africa has grown to over $25 billion and they plan to up that to $30 billion in the coming year with a goal of reaching $100 billion.
But what drew a lot of attention was China’s emphasis on funding sub-Sahara’s agri-business. When Chinese Premier Li Keqiang delivered his May 5 speech at the African Union Conference Center in Ethiopia, he said that China and the African Union have now issued a program for strengthening China-Africa cooperation on poverty reduction.
“The year 2014 is Africa’s Year of Agriculture and Food Security. China will join the AU and African countries in jointly implementing the ‘High Quality and High Yield Agriculture Demonstration Project’ aimed at upgrading agricultural technology and farm output in Africa.”
Li said China will devote “a greater part of its assistance to Africa” related to agricultural issues. China also committed to training 2,000 agricultural technicians and management personnel for Africa in the coming five years.
While China’s support is direct, support from the United States is coming more in the form of private companies wanting to get involved. Those US companies wishing to do business in Africa usually go through the Washington, DC-based Corporate Council for Africa, which acts as the private sector coordinator for its 160-member companies.
The Council is sponsoring “Leading the Way in US-Africa Investment” July 31-August 7, a series of events taking place during the White House’s US-Africa Leaders Summit.
Stephen Hayes, president and CEO of the Corporate Council for Africa told AFKInsider in an interview that despite their push of programs like Power Africa, “There’s more interest in agribusiness than necessarily renewable energy right now from American businesses.”
Hayes says the interest varies depending on the companies.
“Some are developing space, developing agricultural products, growing food in Africa in order to reach the African market,” Hayes told AFKInsider. “Another area that is part of agriculture is selling agricultural products, when I say products I should say tools, tractors and things like that.”
A Stalled Revolution?
Africa is on track to achieve the 5.5 percent economic growth in 2014, according to the International Monetary Fund, but, among other things, the organization says it must fund the agri-business revolution. Unfortunately, the agri-business revolution is on hold in parts of sub-Saharan Africa due to “revolutions” of a different type that are leading to a food crisis.
According to the UN’s Food and Agriculture Organization the glaring example is the crisis in South Sudan. The May Integrated Food Security Phase Classification (IPC) analysis carried out in South Sudan found, as a result of conflict, displacement, destroyed markets and disrupted livelihoods, “food security has deteriorated at an alarming rate” resulting in one-third of the population of South Sudan now experiencing emergency levels of food insecurity. And there is a “high likelihood of further worsening through the second half of 2014, with a risk of famine.”
According to the Food and Agriculture Organization: “The food security crisis is spreading westwards to areas that had been less affected earlier in the year. This trend is set to continue unless farmers can plant their fields, fisher folk can freely access rivers and waterways, and herders can migrate between grazing areas. Even previously food secure communities are feeling the strain of conflict, in part due to the burden of hosting internally displaced people.”
