As the impact of Covid-19 on the agricultural sector continues to cause shockwaves, the damage to global food safety is irreversible. Currently 1.2bnn people are suffering from chronic undernutrition and more than 820m people, or 10% of the world’s population, are going hungry, according to the UN’s Food and Agricultural Organisation (FAO.)
That’s not all. According to World Food Programme estimates, more than 48 million people worldwide are on the verge of starvation. As the WHO estimates, there are more than 48 million people in danger of starvation. Global Network Against Food Crises (GNAFC) reports, the situation is fast worsening: at 193m, the number of people facing acute food insecurity at crisis levels or worse in 2021 was up by nearly 40m compared to 2020.
Before 24 February 2022, a confluence of forces – including the global pandemic, climate change and evolving dietary habits – was already conspiring to fracture already fragmented supply chains. Then the Russian invasion of Ukraine quickly escalated the situation as Russia’s blockade on the export of millions of tonnes of Ukrainian grain dramatically hit food-price inflation. Together, the two agricultural giants account 29% of global wheat exports as well as 62% of worldwide sunflower oil production.
According to the WFP, five of the ten most at-risk countries are located in Africa.
Hopeful green shoots
Yet an enormous opportunity for Africa to take back control of its future food security systems lies with the continent’s small and medium-sized enterprises (SMEs), which provide about 80% of jobs.
Only 44 million micro, small and mid-sized businesses are found in Sub-Saharan Africa. They provide income, prospects, and jobs for many families across multiple countries. They are also crucial in ensuring food safety, as only 20% of food production is for growers. The remaining 80% of food production is sold and managed through a network of private suppliers.
It has been proven numerous times that financial inclusion is possible for entire communities if a SME is stable, growing, and well-connected. It is therefore a tragic irony, that the SME industry in Africa has suffered more than any other sector since 2019.
Despite the multi-faceted challenges, there are glimmers of hope across Africa’s SME spectrum. The MasterCard SME Confidence Index found that 74% of respondents are optimistic about the next 12 month, and nearly half expect their revenues will increase.
Digital payments and digitalised processes are key to this growth. They will streamline credit and financing, provide better data, and facilitate trans-border trade. The vast majority of respondents (89% in Kenya, 81% in West Africa and 73% in Cote d’Ivoire) were also confident that e-commerce too will play a game-changing role.
The core
However, for Africa’s food systems to undergo the transformation that is so essential, multiple systemic issues must first be addressed. These issues are beyond what any single organization or initiative can address. Without a change in the way organisations work together, all efforts to drive change will be severely hampered.
Slow investment rates in agriculture are also holding back the potential for change. Trade between surplus and deficit areas should be encouraged more. Although there are many socioeconomic and environmental factors to be considered, replacing imports into Africa by home-based production is the most important.
It is also important to focus on nutrition. This will enable balanced diets that include elements such as fruit and vegetables, milk, fish, lipids, and tubers. Traditional staples like grains, rice, and cassava must also be included. These more diverse foodstuffs are now a part of between 50% and 70% both in urban and rural areas. Also, processed foods are rapidly gaining popularity, offering greater production and value-added opportunities across the African food chain, creating more jobs, more income, and better food security.
The AGRF & IDH have joined forces to help get this process moving. This is a combination of their strengths and areas. There will be a special focus on the AGRF2022 summit. 5-9 September in Kigali Rwanda. The summit brings together leaders, SMEs, farmers, officials, and other voices from agriculture and government. It aims to unite resources and effort, generate and promise funding, and drive new policies and strategies for the future.
Transformational impact
Many initiatives already underway are proving the transformational impact that the right will and energy are capable of having on Africa’s SMEs and food systems. IDH is supporting the HortInvest project, which supports the Rwandan horticultural company Garden Fresh. HortInvest is focused on developing domestic markets, improving nutrition, food security, developing export value chain and enabling higher sustainable incomes for 44,000+ farmer households.
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