Kampala once again hosted discussions revolving around the agricultural sector in the East African Community (EAC). In November 2013, Uganda hosted the International Symposium and Exhibition on Agricultural Development in the EAC; last week the East Africa Agribusiness Investment Summit and Awards was held in the country’s capital.
During the two-day conference held on December 10-11, business owners, politicians and NGO representatives met at the Serena Hotel to participate in panels, various speeches and the awards gala dinner.
The key theme for the first day of the conference — which AFKInsider attended — was “Unlocking the Potential of East African Agribusiness for Growth.” Discussions, speeches and exhibits revolved around the enormous potential of the agricultural sector, the current challenges it is facing, and possible solutions.
“There are estimates that 80 percent of people in this country are involved in small-scale farming, yet only 20 to 30 percent of the GDP is coming from that sector,” Sean Paavo Krepp, country director for Grameen Foundation in Uganda, stated during a panel discussion.
According to Krepp and others at the conference, this hulking, yet under-productive sector needs to be connected with emerging markets. Throughout the EAC, and the entire continent of Africa, markets are shifting. A rising middle class, increased urbanization and a growing amount of disposable income present an opportunity for the agricultural sector. According to the World Bank, agriculture and agribusiness in sub-Saharan Africa could become a $1 trillion industry by 2030.
If East Africa is going to benefit from the growing domestic and global demand for agricultural products, it must be deliberate about harnessing its potential — or else risk being left behind in the competition, various conference speakers warned. The private sector, the public sector and development organizations all have a role to play to bring about sustainable economic growth in the EAC.
“Ideally the markets can fix everything, but the world is not yet ideal. There is still a role for governments and NGOs,” stated Jeanette de Regt, country director for SNV/Netherlands Development Organisation, and a discussion moderator at the conference.
By working together, the public and private sectors need to connect rural farmers to urban consumers.
One company that has successfully forged this connection is Uchumi Supermarkets Ltd., a chain of grocery stores that began in Kenya, but now has locations springing up across the EAC.
