Supporting sustainable agricultural production in Africa

March 30, 2023

According to current World Bank data, approximately 60% of the world’s arable land is in Africa, with approximately 30,500 km (18,950 miles) of coastline. Africa holds superior sun exposure, soil fertility, air quality, lower density of population, and the potential for higher cuts per crop versus other continents.

In Africa, over 44% of the population are employed in agriculture, compared to 37% in Asia and 32% in Latin America. Agriculture is an important part of not only the African economy but also the lives of those living there. It is estimated that African agricultural production has increased by around 2.2% per year since the year 2000, and is projected to continue rising.

Despite these increases, due to inaccessibility to fertilizer and tractor technology and deprivation of modern farming techniques, Africa reports one-seventh of the farming productivity yields of North America and Europe. In addition, with small­-scale farming operations proving difficult to mechanize and often requiring labor that is unavailable or too expensive, increased production of African agriculture has been hindered.

In an attempt to address these issues, a number of initiatives are underway in Africa to increase agricultural production. This includes a shift towards more modern tools and techniques being adopted in agricultural production, such as precision agriculture, improved irrigation systems, mechanization of farming processes, and agroforestry. These strategies contribute towards increases in crop yields while reducing waste and promoting environmental sustainability. Mobile phones can also provide infrastructure for farmers to access real-time weather and market data. In addition, the development of improved irrigation techniques, and access to credit for buyers are also tools that can help Africa unlock its potential in the agri space.

In addition, a variety of public-private partnerships (PPPs) have been developed to support agricultural production in Africa. These PPPs have typically focused on providing farmers with training in sustainable farming techniques, access to technology and capital, and support for marketing and storage efforts. Moreover, these partnerships have also provided access to improved seed varieties, soil testing services, access to weather data and market prices, as well as insurance services for farmers.

Due to economies of scale efficiencies, larger farming properties are believed to hold incremental value to smaller properties, given the ability to improve yields, maximize revenue, and minimize costs. As a reference point, the average farm size in the United States is approximately 200 hectares, or 435 acres. In Africa, small scale farming is the norm, with the average size of a farm being 1.1 hectares (2.7 acres). An estimated 43% of agricultural land in Africa is owned by women, and most of these women are smallholder farmers using traditional methods for growing crops such as maize and cassava to support their families.

While the continent’s fundamentals are certain, an overall lack of long-term support for sustainable agriculture has hindered progress. Today, most agricultural commodities are exported at the raw material phase, depriving farmers of the value that can be captured through downstream transformation and sale. In addition, climate change is impacting crop yields and increasing the number of extreme weather events, making it difficult for farmers to anticipate and finance seasonal variances in production.

In order to improve the agricultural sector in Africa, initiatives must focus on investing in practical solutions such as improved access to credit/finance facilities, better irrigation technology, and increased education and training opportunities for small-scale farmers. There is also need for better access to inputs such as fertilizer and machinery, improved infrastructure such as roads, storage facilities and irrigation systems, financial services that enable savings and credit for farmers, advanced technologies such as precision agriculture, and an increase in knowledge on best practices.

Financial investors have a role to play, but corporates that have been operating on the continent for decades are particularly well placed to fill an important resource gap. Supporting women and mothers to become economically independent is another key goal that requires investments in formal education and vocational training programs. Solutions can only be constructed through hybrid joint ventures that bring together experts in agriculture, sustainable development, engineering, food and water systems, logistics and finance. While a significant amount of capital is needed, there is a greater need for long-term project supporters on the ground.

With the right investments, African agriculture has the potential to improve yields, reduce poverty levels and ultimately bring greater economic stability and growth to the continent. This will ultimately require a strong collaboration between the public and private sector to bring together much-needed resources, technology and training solutions.

CPM