Africa: Private sector key to Africa’s agricultural development
By Nawa Mutumweno – African governments have, in recent years, demonstrated renewed commitment towards increased and sustainable growth. This is evidenced by governments embracing the Comprehensive Africa Agriculture Development Programme (CAADP) as a clear testimony of Africa’s resolve to achieve food security and wealth creation objectives through growth in the agriculture sector.
Thirty (30) countries have already signed CAADP compacts, a commitment to invest 10% or more of their national budget in pursuit of 6% average growth in the sector. These governments have also committed to implement prerequisite policy and institutional reforms necessary to create an enabling environment to implement country agricultural development investment plans.
The agricultural sector in Africa grew by 3.2% a year during the 10 years of CAADP implementation. Although this is moderate, it is the highest average for the last four decades and is beginning to show signs of improving the lives of poor people. This growth can be attributed to the CAADP emphasis on increasing productivity as well as private-public investment in the agriculture sector, NEPAD CEO Ibrahim Mayaki observed.
It is a fact that the targets set for Africa’s agriculture are high but not far reaching. However, governments, the private sector and/or development partners are not in a position to independently deal with Africa’s agricultural development and food insecurity challenges.
Separately, these actors either lack the resources or incentives to fully develop the agricultural sector. The transformation of Africa agriculture requires innovative forms of platforms and institutions that emphasise collaboration, coordination, cooperation and communication between key agriculture development actors. These platforms and institutions specifically have to recognise and align to the private sector’s ‘appetite’ for quick, decisive and economically sound actions.
This is where institutions like the NEPAD Business Foundation (NBF) come in. NBF prioritises agriculture and infrastructure and this resonates in its flagship projects. It aims to remove barriers that are hampering investments in these two sectors at a macro and a micro level. As a result, Africa will be nourished and intra-African trade will grow.
‘’The vision of NEPAD created a unique reference point for African governments to consider their national priorities within a continental context. This provides us with a framework – a collective way of thinking about infrastructure, agriculture, capacity development and natural resources management. The vision of NEPAD therefore is beyond a platform of conversation – it is an action plan. Its success depends on commitment and prioritisation,’’ Lynette Chen, NBF chief executive officer says in the Official NEPAD Yearbook 2013.
Without doubt, the private sector is generally more efficient in making investment decisions, implementing viable projects and successfully establishing sustainable agribusinesses. Despite this, policy and non-policy induces constraints continue to undermine private sector efforts to invest and trade in African agriculture. Business’ role could be leveraged even further through the development of enabling policies and targeted regulatory reforms in Southern Africa.
The Southern African Agricultural Development Partnership Platform (SAADP) was launched by the NBF Removing the Barriers programme (NBF-RtB) on February 14, 2012, in Midrand, South Africa. The SAADP is a private sector-led partnership platform aimed at identifying and removing barriers to agricultural development, investments and trade in Southern Africa. The initiative has since been rolled-out in Malawi, Mozambique and Zambia.
‘’The objective of SAADP is to mobilise, institutionalise and increase the voice of the private sector in addressing agricultural development, trade and investment policy constraints in Southern Africa. Specifically, the platform seeks to unlock investment and trade bottlenecks in the region as well as remove barriers to increased private sector involvement in agriculture development. The SAADP is facilitating collaborative and coordinated dialogue and practical project development, planning and implementation championed by the private sector in active partnership with regional governments, development partners and civil society,’’ an information brief on SAADP elaborates.
The SAADP is working towards mobilising and institutionalising regional private sector voice through three stakeholder-identified thematic working areas. These are Regional Market Integration (Market development and integration, harmonisation of regional policies and standards, transport and border infrastructure); Alternative Funding Streams (Development of funding models, project feasibility, development, packaging, funding and management capacity, inclusive business models); and Capacity Building (Guidelines for capacity building, mentorship and internship programmes, farmers as change agents, agricultural extension, research and development). Although the identified thematic working areas are inter-connected, their grouping is based on operational practicality rather than distinction. There is a lot of cross-fertilisation among them. These include Information management, policy advocacy, governance, monitoring and evaluation.
Removing barriers and constraints in African agriculture requires objective and practical dialogue between stakeholders, especially the private sector and governments. It is equally imperative for governments and policy makers to ensure full collaboration and active response to trade, investment and development needs identified through a collaborative and coordinated multi-stakeholder dialogue process.
‘’This will enhance rather than undermine overall country development goals. Southern African governments will, therefore, have to take responsibility in supporting, facilitating and ensuring the development and supply of the public goods (i.e. transport and telecommunication infrastructure) and services that enable the private and other sectors to engage in sustainable agricultural development and economic activities that contribute to agricultural growth and food security goals,’’ the brief adds.
Africa must accelerate its integration into the global economy through joint ventures between international and domestic private sectors to achieve a much-needed economy of scale. Governments should leverage their private sector competitive advantages and resources to sustain and surpass Africa’s current economic success.
