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Global Poverty

With Food Needs Set to Triple, African Farmers Need Investment

African_Farmers
Recent progress in Africa’s agriculture sector faces a number of potential threats according to Dr. Agnes Kalibata, the president of Alliance for the Green Revolution in Africa (AGRA). Kalibata, formerly the Rwandan Minister of Agriculture and Animal Resources, cites global climate change as African agriculture’s biggest threat if it’s not met with increases in further investment.

Thanks to recent financing in the form of development aid, agriculture insurance and foreign direct investment (FDI), many African farmers have developed the means to overcome the formidable climatic and economic conditions that threaten food access for hundreds of millions of people. But Kalibata says that without sustained investment, Africa’s food needs, which are set to triple by 2050, could prove unattainable.

“[Climate change] is eroding the momentum we had gained in terms of getting farmers to use improved seeds and buy fertilizers,” said Kalibata. “If a farmer puts his small savings into seeds and fertilizers and loses the whole crop, that’s the end of his whole career … Farmers are getting less rain, it’s more irregular and it’s beginning to affect their production and undermine the investment they are making.”

In a policy paper presented at the development finance summit in Addis Ababa earlier this month, AGRA estimated that the value of African agricultural output could increase from $280 billion to $800 billion by 2030. In order for the sector that employs around two-thirds of Africa’s population to realize this possibility, potential investment needs to be substantially increased and diversified.

One such opportunity for American investment comes in the form of agriculture insurance, which people and countries are increasingly relying upon to withstand conditions out of their control, such as natural hazards and climate-related disasters. Because agriculture is a high-variable venture, particularly in the harsh environments of sub-Saharan Africa, farmers are often left without the means of recovering lost investments or repaying debts associated with past loans. Insurance coverage enables those farmers to participate in riskier but more lucrative activities, like diversified harvests or mechanization.

Investment in African agriculture comes with economic and moral implications that reach deeper than the immediacy of food insecurity. Access to reliable sources of food is essential for countries in the early stages of economic development and, once established, can empower people and countries to achieve previously unattainable levels of security and self-determination.

“Agriculture is everyone’s business: national independence depends on its development because it enables us to escape the scourge of food insecurity that undermines our sovereignty and fosters sedition,” writes The New Partnership for Africa’s Development CEO Ibrahim Assane Mayaki in the United Nations’ Africa outlook. “[It] is the sector offering the greatest potential for poverty and inequality reduction, as it provides sources of productivity from which the most disadvantaged people working in the sector should benefit.”

The Food for Peace Reform and Electrify Africa Acts introduced earlier this year mark a number of Congressmen’s sustained efforts to make African development a focus of U.S. foreign policy. But in order for Africa to meet its future agricultural needs, investors and donor organizations will need to take further steps to establish infrastructure, mechanization and resistance to climate-related challenges. Those investments in food security could help to deliver increased opportunities for the African and American economies alike.

– Zach VeShancey

Sources: The Guardian, AGRA, United Nations
Photo: Flickr

July 28, 2015
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