Stakeholders root for Agri-processing investment for resilient food systems
The Africa Enterprise Challenge Fund (AECF), the High Commission of Canada in Kenya and AGRA have today discussed the prospects in African agribusiness and shared results of a 10-year, $20million Canadian initiative that GAC and AGRA undertook in 13 African nations.
During the briefing, the hosts including President of AGRA Agnes Kalibata, AECF Chief Executive Officer Victoria Sabula, and, Canadian High Commissioner to Kenya, Christopher Thornley hinted that innovative business models are best suited to address difficulties in small and medium-sized agricultural businesses and agri-processors (SMEs) that they face in accessing suitable financing.
“Building resilient food systems is a matter of urgency and value addition presents better possibilities for Africa’s smallholder farmers. This programme has demonstrated the essence of investing in close-to production downstream processing facilities that create markets and reduce costs for rural, smallholder producers while increasing incomes, impacting lives and providing opportunities for value addition,” observed Sabula.
The initiatives are said to have helped livelihoods in rural and marginalised sub-Saharan Africa by increasing productivity, reducing post-harvest losses, diversifying product offerings, and creating jobs in key agricultural value chains.
On the other hand, Kalibata had similar views when she hinted that firms must see prospects for expansion and possess the assurance, resources, and skills necessary to support farmers, transact in produce, and profitably process food.
According to Kalibata, farmers need access to appropriate, cost-effective technologies for growing durable, high-quality crops as well as a fair opportunity to reap the rewards of their labor.
“Everyone needs to participate in markets that not only enable the efficient flow of physical goods but also the right flow of information for buyers and sellers to find each other. These are the basic building blocks of any sustainable food system, yet in many countries, they are flawed or missing altogether,” revealed Kalibata.
At least 2.9 million people have already been affected by the initiative, along with 582,338 rural households, 60percent of which make less than $2 per day.
“Canada is proud to partner with African institutions like AGRA and AECF. Their deep contextual knowledge facilitates the achievement and sustainability of results, including increased incomes and improved food security,” Thornley stated.
The Agribusiness in Africa Window (AAW) has provided funding to 19 SMEs in 11 countries, including Kenya, Nigeria, Malawi, Mozambique, Sierra Leone, Senegal, Tanzania, Zambia, Zimbabwe, Uganda, Burundi, and the Democratic Republic of the Congo.
These companies work in a variety of agriculture value chains, including maize, legumes, palm oil, bananas, cashew, fruits, and sweet potatoes.
