Opinion & Analysis
Africa’s growth lies in agribusiness
A Brookside milk processing plant. Africa needs to upgrade and promote indigenous enterprises, create centres of excellence for technology transfer, reduce the time and cost of doing business, and introduce appropriate standards to enable products to compete in international markets. Photo/FILE
Posted Wednesday, March 17 2010 at 00:00
There is also need to promote and support institutional reforms in order to stimulate agricultural growth and agribusiness on the continent.
As the African population continues to increase, there is urgent need to boost agricultural production to reduce hunger and ensure food security.
Africa has to build its financial and human resource capacity to be able to produce its own agricultural inputs like fertilisers, farm tools and machinery, upgrade its sanitary standards, and add value to its own agricultural products.
Africa needs to transform its agricultural products and provide the necessary support services to take advantage of the growing domestic and regional agro-food markets.
In addition, within the framework of South-South Cooperation with India, China, and Brazil, the continent stands to benefit from the experiences of these nations in agro-food processing and development.
The recent increase in food prices, which severely affected most countries in Africa, reinforces the urgent need for the continent to not only boosts its food production and self sufficiency, but to also achieve food sovereignty like any other region of the world.
Food handouts
Africa cannot afford to rely on other parts of the world for food aid and food handouts if it is to reduce hunger and malnutrition among its population.
Agriculture remains an important source of livelihood in African economies, accounting for a large percentage of employment and national GDP and therefore the pursuit of the food security agenda is key for the continent’s economic development.
In the pursuit of economic development, peace and security, food security, energy and infrastructure must go hand in hand as priorities for 2010.
The major challenge of developing agribusiness and agro-industries in Africa lies on the adoption of appropriate national and regional policies, strategies and institutions that can nurture innovation in the sector.
In addition, there is need to upgrade standards in agro-products within the value chain not only for export but also for domestic markets.
Standards can ensure high quality label, which in turn facilitates trade. For Africa, the challenge is to generate growth, become competitive and take ownership of its future.
Tankeu is the Commissioner for Trade and Industry at the African Union Commission
RSS