Features

Why our stereotypes of African agriculture are all wrong (en)

20 diciembre 2016
ITC Noticias
It is time to shift our focus from farming to agribusiness

From newspaper editors to TV anchors to bloggers, the default symbol of African agriculture is a woman holding a hand hoe. This imagery highlights the drudgery African women face in farming. It also conflates family farming with broader agricultural enterprise.

As I argue in The New Harvest: Agricultural Innovation in Africa, farming is only a small part of the agribusiness value chain. This includes resource data processing; input provision; production; aggregating; processing and packaging; retailing; and recycling. Making the value chain work efficiently involves connecting farmers to markets.

As noted in a recent report by the Tony Elumelu Foundation, Unleashing Africa’s Agricultural Entrepreneurs, the sector ‘accounts for 32% of Africa’s gross domestic product, and employs over 65% of its labour force’.

Taking the value chain approach, the World Bank has estimated that Africa’s agribusiness market will reach US$1 trillion in 2030. This estimate does not include auxiliary industries that will arise from the expansion of the sector.

Efficient markets rely on effective information flow. New firms such as Gro Intelligence, a data analysis firm, are emerging to fill the data gap. Similarly, the expansion of rural energy, transport, irrigation and telecommunications infrastructure will also spur the rise of support industries.

TOO MUCH FOCUS ON FARMING

This is one of the ways the long value chain of agribusiness serves as a driver for industrial transformation. Few other sectors offer Africa such a broad range of opportunities for technological innovation and entrepreneurial development. Templates for business models can be readily adopted. The key is to define agribusinesses as learning opportunities from the outset.

Past efforts to promote agribusiness were not successful partly because of the narrow focus on farming. This approach also failed to appreciate the importance of investing in basic rural infrastructure, without which neither production nor markets can function. In addition, the focus on farming precluded consideration of the role of higher technical training in agribusiness.

The general policy prescription was that farmers did not need more than primary education to function. However, in many cases agriculture is more complex that manufacturing, where many functions can be automated and products can be generated just in time. The complex process of plant or animal growth demands more versatile knowledge sources and husbandry that cannot be readily automated.

The focus on farming also created biases in the provision of incentives such as credit, insurance and technical support to farmers. Urban enterprises, especially those involved in manufacturing, have access to a wide range of enabling incentives. The same is not true of agriculture, especially where it is perceived narrowly as farming. Agribusiness needs to be supported like other ventures. Farmers should be viewed as entrepreneurs and innovators, not simply as producers for downstream operations.

A BRIGHTER FUTURE

The good news is that young people in many parts of Africa see great potential in agribusiness. The bad news is that young people venturing into agribusiness lack access to capital. Even more critical is the lack of mentors who can guide them through the early phases of their start-ups. Young ‘agripreneurs’ could also benefit from investment in adequate infrastructure. Though they already know the power of mobile technology, what they might need most is access to broadband, which also helps link them to knowledge centres. The cost of broadband can be prohibitively expensive despite the fact that it is essential for dynamic business operations.

One possible way to resolve this could be to provide broadband grants in the same way the United States of America provided land grants. Private enterprises can also purchase broadband and donate it to selected agribusiness start-ups as part of their corporate social responsibility.

There are many opportunities for leveraging the growing interest in agribusiness to expand the sector. These are diverse and lie not only along the full value chain but also in farms of all sizes. The starting point should not be driven by ideology or dogma about farm size. There are many enterprises that do not engage in agribusiness but could diversify into the sector given the opportunity.

In China, for example, coal-mining firms are starting to diversify into agribusiness in light of new restrictions imposed on the sector to reduce carbon dioxide emissions. In Africa, some oil companies might also explore moving into agribusiness given the uncertainties in their own sector. Agribusiness in Africa must be nudged towards a tipping point from which it can take off. The push will need to come from collaboration between government, business, academia and civil society.

MODERNIZING AGRICULTURE

An additional way to promote agribusiness is to recognize individuals or organizations that have made outstanding contributions to different sections of the value chain. Many of the existing prizes tend to focus on production, reinforcing the narrow farming image. The newly established Africa Food Prize, with a judging panel chaired by former Nigerian President Olusegun Obasanjo, could serve as a role model in emphasizing the agribusiness approach in its awardees.

African governments, as illustrated by the case of Nigeria, are starting to appreciate the importance of agribusiness in long-term economic transformation. But appreciation is not enough. We not only need heads of state and government to serve as champions. We need policy consistency. The two are important because of the long-term nature of agricultural transformation.

In one of her signature appeals for the modernization of African agriculture, the chairperson of the African Union, Nkosazana Dlamini-Zuma, said the hand-held hoe should be in a museum, not in the hands of African farmers. The quickest way to consign this symbol of drudgery to the history books is to shift our thinking from traditional farming to agribusiness. That is the root of Africa’s coming prosperity.