The African Development Bank (AfDB) points out that agriculture is a major source of income in Africa however untapped agricultural potential has contributed to persistent poverty and deteriorating food security.
In the view of AfDB, this has resulted in a projected increase in the number of undernourished people from 240million in 2015 to 320million by the end of 2025.
Research by the AfDB covering the period 2015 to 2025 found that falling commodity prices across a broad range of natural resources are creating an increasing imperative for African nations to diversify their exports and reduce current account deficits.
At the same time, it said, increased food demand and changing consumption habits, driven by demographic factors such as population growth and urbanisation, are leading to rapidly rising net food imports, which are expected to grow from US$ 35 billion in 2015 to over US$ 110 billion by 2025.
Successful transformations of the agricultural sector are business-led, and involve the creation of three simultaneous conditions, it said.
The conditions are: a large-scale dissemination of productivity-increasing technology and inputs, plus input intensity and capital intensity; the development of input and output market structures and incentives that allow the full realisation of the value of increased production; and a well-functioning and vibrant private sector that can manage and allocate skill and capital to scale emergent success and drive long-term sustainable agribusiness growth.
The public sector has a critical role to play in enabling these conditions and letting businesses flourish.
Story by Kofi Nartey
