Private sector engagement key in Africa’s food system transformation
The private sector is a key demographic whose unique strengths for capital mobilization and innovation must be harnessed to accelerate Africa’s food system transformation.
Multiple researchers have found that rapid transition could be achieved by tapping the private sector to improve distribution networks, set up post-harvest management facilities, and expand market access. However, government leadership is still critical in providing direction, starting with policy investments that shield smallholder farmers and other small players across the food and agricultural value chains from exploitation. Other solutions include the development of regional food balance sheets and appropriate infrastructure to avert the incidence of post-harvest losses, which accounts for up to 40% of all the food produced in Africa.
For market development, the African Continental Free Trade Area (AfCFTA), which, when fully implemented, will open up a $3.4 trillion market across the 55 African countries, stands as a remarkable opportunity. The common market introduced under the AfCFTA is expected to engage the private sector in capturing Africa’s diverse strengths in food value chains and specialties, reducing overdependence on foreign agricultural inputs through enhanced intra-African trade.
Additionally, government-led investments in youth projects can be leveraged to rope in private investments. A good example is the Government of Tanzania’s Building a Better Tomorrow – Youth in Africa (BBT-YIA) initiative, a $500m project aimed at boosting youth participation in agriculture. The six-year project is expected to draw more support from the private sector during its implementation as it focuses on transforming the country into a tech-led agricultural production powerhouse.
Meanwhile, the continent’s youth is a resource that should be tapped to inject renewed vigour into food systems, creating the grounds for private sector investment to introduce multiple opportunities for job creation, a critical imperative. Indeed, there is a need to celebrate successful youth agripreneurships, like Hello Tractor, a tractor-hailing platform; KeepItCool, a cold-chain investor; and Magofarm, an insect protein feed maker, whose success is capturing the interest of young people in food systems innovation.
Finally, establishing sustainable financing strategies is a key requirement for private-sector participation. In relation, the Agribusiness Dealroom at the Africa Food Systems Forum (AFS Forum) in Kigali, Rwanda, from September 3 – 6, 2024, comes as a critical opportunity for fundraising. The AFS Forum will be held under the theme, ‘Innovate, Accelerate and Scale: Delivering Food Systems Transformation in a Digital and Climate Era’, in recognition of the urgent need to transform African food systems by prioritizing youth participation. Activities at the forum will also strive to engage private sector leadership in the continent’s food system transformation, including through multiple opportunities for investment across varied food system value chains.
-ENDS
