Opportunities and Strategies to Increase Sourcing in Africa

Introduction

“Sourcing in Africa” is a stakeholder platform that identifies opportunities and implements strategies to increase sourcing from African smallholder farmers. Stakeholders encompass the entire eco-system that facilitates agriculture value chains ranging from anchor-buyers, farmers, SMEs, financial institutions, service providers, input companies and technical expert NGOs. The  platform focus on strengthening supply chains that link  farmers, aggregators and anchor buyers

The platform convenes in the Deal Room  to benefit from  matchmaking opportunities to align investments, forge partnerships and joint interventions that increase sustainable sourcing in Africa.

The Challange

Increasing the volume of produce sourced from African smallholder farmers and expanding food processing capacity on the African continent are key pillars of African agricultural transformation. Currently an estimated 60% of key commodities consumed in Africa are sourced from outside of the continent. 

Successfully sourcing from smallholder farmers means overcoming challenges which include undeveloped and fragmented value chains, technical capacity of farmers and processors, lack of adequate finance, and lack of public policy and infrastructure to support the sustainable supply of their requirements. Even in cases where anchor buyers, small traders and processors are able to overcome some of these challenges, they often lack access to financing and capital and management capabilities to grow their business sustainably.

What we do

The platform engages in the following year round activities:

  • Facilitate matchmaking, partnerships and alliance building between value chain actors; anchor-buyers (brands, retailers, regional and domestic companies), SMEs, commercial service providers, farmers and technical experts,NGOs to strengthen value chain linkages and scale local sourcing models.
  • Raise awareness on  interventions, investments and policy revisions to guide the decision making, policy design and programs of governments and development partners.
  • Show case success and solutions at the AGRF and other  key events annually
    • Provide opportunities for financial institutions to present financial service models that support anchor-buyers, SMEs and farmers the improve value chain connections
    • Provide opportunities for development partners and governments to present strategies and programs to increase local sourcing
    • Showcase successful business models, programs and other interventions  on successful private sector initiatives
  • Share knowledge on lessons learned and new opportunities

How to engage?

If you want to participate in the sourcing for Africa platform, please contact Valentine Miheso on  vmiheso@agra.org or email dealroom@agra.org.

Please note that all participants in the deal room are required to register for the AGRF summit. 

Resources

Grow Africa signed US$200m of public private termsheets at the AGRF 2019

Mr Dangote signs a terms sheet on behalf of Dangote Farms Limited with the Nigerian government and Grow Africa’s Ibrahim Gourouza-Magagi in the Agribusiness Deal room at the AGRF 2019

Al Haji, Sani Dangote, Vice President of Dangote Group said “Gaining commitments to support agribusiness in Nigeria will go a long way in making investment in domestic value chains viable and in improving the livelihood of Nigerian farmers”. “By processing Tomato, Dangote Farms Limited can in turn support Nigerian farmers to improve their seedlings and yields” he added.