Agribusiness: A Global Concern

1. Agribusiness: A Global Concern • Food security and rising food prices • Increasing demand for commodities • Climate Change • Economic and financial crises • Millennium Development Goals: Halve poverty and hunger by 2015

2. Agribusiness in Africa

3. Agribusiness plays a critical role in Sub-Saharan Africa

4. 70% of SSA’s households depends on Agribusiness for its livelihood

5. Labour Force

6. Merchandise Exports

7. GDP As high as 50% in some countries

8. Women in Agriculture • Gender gap: limited access to productive inputs, assets and services. • 50% of the Agricultural labour force • 60 % of employed women

9. Industry Actors

10. Governments/Regional Bodies

11. Case Example: AU-NEPAD CAADP • CAADP's goal is to eliminate hunger and reduce poverty through agriculture. • To do this, African governments have agreed to increase public investment in agriculture by a minimum of 10% of their national budgets and to raise agricultural productivity by at least 6%.

12. The Four CAADP Pillars • Pillar 1- Extending the area under sustainable land managementPillar 2 - Improving rural infrastructure and trade-related capacities for market accessPillar 3 - Increasing food supply and reducing hungerPillar 4 - Agricultural research, technology dissemination and adoption

13. Financial Institutions

14. Case Example- -IFC • IFC has made agribusiness a priority • IFC supports projects across the food supply chain, including processing, logistics, and distribution. • IFC tailors specific instruments and partnerships to address different challenges in individual countries/sub-regions

15. IFC investments in the sector span: • Fertilizers • Food Retail • Agri IT/Telecoms • Agri Infrastructure • Equity Funds • Rural and Trade Finance • Agribusiness Production and Processing

16. Investments include: • Finatrade Holdings Limited , operating in West Africa in soft commodities (rice, sugar and vegetable oils) and fast-moving consumer goods (FMCG) distribution; • Bakhresa Group, operating milling businesses in East Africa

17. Networks/Associations

18. Case Example- UniBRAIN(Universities, Business and Research in Agricultural Innovation) • Development of agricultural business innovations in an Agribusiness Innovation Incubator Consortia (AIIC) environment 2. Production of agribusiness entrepreneurs and innovators by improving BSc and MSc agribusiness teaching and training 3. Sharing and up-scaling innovation outputs, experiences and practices

19. Key Partners: • The African Network for Agriculture, Agroforestry and Natural Resources Education (ANAFE) • The African Technology Policy Studies Network (ATPS) • The Pan-African Agri-Business and Agro-industry Consortium (PanAAC) • Sub-Regional Organisations: ASARECA, COARAF/WECARD, SADC/FANR

20. NGO’s

21. Case Example: TechnoServe

22. Increasing competitiveness in the Cashew Nut Industry • African farmers produce 1/3 of the world's cashew nuts, but nearly all of them are processed elsewhere.

23. TechnoServe is working in Tanzania, Mozambique, Ghana and Kenya to improve farmer productivity, establish efficient local processing plants, and improve the business environment. • TechnoServe has helped form the African Cashew Alliance to coordinate the industry's competitive growth and sustainability.

24. These efforts have already created thousands of processing jobs and boosted the incomes of more than 100,000 farmers.

25. Research Institutes

26. Case Example: NERICA • A new rice variety is transforming agriculture in a large portion of West Africa, benefiting twenty million farmers- mostly women- and helping reduce the high rice import bills. • NERICA, "New Rice for Africa", combines the ruggedness of local African rice species with the high productivity traits of the Asian rice that was the mainstay of the Green Revolution.

27. Scientists at the West Africa Rice Development Association (WARDA) developed NERICA using bio-technology techniques • Sierra Leonean, Dr. Monty Jones and currentlyExecutive director of Forum for Agricultural Research in Africa (FARA) won the World Food Prize in 2004 for his break-through work in developing NERICA.

28. Donors

29. Case Example: Bill & Melinda Gates Foundation: Global Development Program • Agricultural Development is the largest initiative in the Global Development Program • Working with partners, the Foundation aims to help 150 million of the world’s poorest farming families in Sub-Saharan Africa and South Asia lift themselves out of extreme poverty by 2025

30. The Foundation focuses its investment in four areas: 1. Farmer Productivity 2. Market Access 3. Science and Technology 4. Policy and Statistics

31. Success Stories Agribusiness is transforming organizations, industries and lives.

32. Blue Skies • Exporter of pre-packed fruit salads and juices • 2000 employees in Ghana, Egypt, South Africa and Brazil • Customers include some of the biggest supermarket chains in the UK, Europe and South Africa • The UK’s 2000 tonnes of prepared pineapple yearly imports from Ghana generates £2.6 million in wages alone.

33. Kenya: The Horticulture Industry • The Horticulture industry is the second largest earner of foreign exchange, employer and contributor to food needs in the country. • It is the fastest growing agricultural sub sector • Kenya’s ideal tropical and temperate climatic condition makes it favourable for production of wide range of fruits, vegetables and flowers.

34. Largest supplier of cut flowers to the European Union. • Second largest developing-country exporter of flowers in the world • Second largest horticultural exporter in Sub-Saharan Africa after South Africa. • Second largest developing country supplier of vegetables to the European Union

35. Faustina’s Fortune

36. But there are many challenges...

37. Lack of Human Capital • Lack of Infrastructure • Market Access • Access to Credit/finance • Access to Information and Inputs • Supply Chain Management/Inefficiencies • Only 7% of Africa’s arable land is irrigated

38. Agribusiness can unlock Africa’s economic growth potential

39. What role must we play?