AGRA has launched its 2024 Africa Agriculture Status Report titled Harnessing the Private Sector for Food Systems Transformation in Africa. The report provides an in-depth analysis of the significant role that SMEs play in transforming food systems across Africa.
Developed through collaboration with a diverse group of stakeholders, the report explores the vital contributions of MSMEs to agricultural and economic transformation on the continent. The report further highlights a significant shift towards more inclusive agribusiness investments by medium and large-scale agribusinesses. Recent trends reveal a growing focus on integrating smallholder farmers and enhancing rural livelihoods.
Additionally, the report found that programs providing improved seeds, modern farming techniques, and financial services are boosting smallholders’ yields and income. Additionally, rural infrastructure initiatives such as roads, storage facilities, and market access are vital for linking small farmers to larger value chains and markets.
Various case studies featured in the report demonstrate how investments in cash crops, infrastructure, and digital technologies are driving diversification and boosting export growth.
For example, in Malawi, substantial investments in groundnut production, supported by new seed varieties and enhanced processing capabilities, have not only bolstered local agriculture but also expanded the country’s export markets. In Nigeria, the cocoa sector has been revitalized through strategic investments in modern farming techniques and processing infrastructure. Elsewhere in Ghana, mobile platforms like AgroCenta have revolutionized agriculture by providing farmers with crucial market information, access to credit, and improved input distribution.
Similarly, Kenya’s investment in macadamia nuts, and the adoption of digital platforms for farm management and market access, has positioned the country as a leading exporter. Digital technology is transforming agricultural value chains by improving access to inputs, credit, and market information. Platforms like M-Kulima and M-PESA in East Africa are streamlining transactions and enhancing input distribution efficiency. Additionally, digital tractor leasing services such as Hello Tractor are increasing mechanization accessibility for smallholder farmers, thereby boosting productivity and reducing costs.
Speaking at the launch event, Dr. Agnes Kalibata, President of AGRA, stated, “The Africa Agriculture Status Report 2024 highlights the transformative role of MSMEs in shaping Africa’s agrifood landscape. By harnessing the power of the private sector, we can drive meaningful food systems transformation and achieve sustainable growth. This report provides actionable insights on supporting MSMEs to enhance their impact on food security and economic development. This report marks a significant milestone in understanding the private sector’s influence on Africa’s agrifood systems.”