Africas's annual agriculture inverstment soar to $2.3bn

18May 2016
Angel Navuri
The Guardian
Africas's annual agriculture inverstment soar to $2.3bn

The sector could grow significantly on the continent in the coming years with the right investments and policy actions, according to leaders of business and government and others who gathered for the 2016 Grow Africa Investment Forum in Kigali.

“Agriculture is the sector that will transform Africa. Our industrialization will be driven by value-added processing of our agriculture products. However we need to tackle key bottlenecks like infrastructure and farmers’ access to finance and markets,” said Kenyan president Uhuru Kenyatta.

Ethiopian Prime Minister Hailemariam Dessalegn outlined the significant progress to date in boosting Ethiopian agriculture.

"African economies have agriculture as their backbone. We need to commercialize and modernize smallholder farmers to realize this potential, and the private sector can play a major role,” Dessalegn said.

“With greater investment and government commitment, we are seeing greater productivity as well as better livelihoods for farming communities,” he added.

The Grow Africa partnership reported that new private-sector projects worth over $500 million in terms of investment were implemented in 2015, bringing the total to $2.3 billion implemented out of over $10 billion committed by more than 200 African and global companies.

In the past year, these investments reached around 10 million smallholder farmers and created 30,000 jobs, bringing the total number of jobs created to 88,000 since 2012.

In the first quarter of 2016, almost $500 million in additional investment commitments were made, suggesting that investor interest remains strong.However, investors have substantial concerns about the enabling environment for African agriculture, according to a survey conducted by Grow Africa.

Business leaders believe that better access to finance and risk management tools, infrastructure, and policy and regulatory improvements are needed. But out of over 130 company responses, almost 70 per cent reported seeing no improvement on these fronts over the past year.

The Grow Africa partnership was co-founded by the African Union, NEPAD and the WEF to advance progress on Africa’s food security and agriculture-sector goals through multi-stakeholder collaboration.

After the WEF hosted and supported the partnership secretariat for an initial three-year period, the secretariat has now transitioned to NEPAD Agency headquarters in Johannesburg, South Africa.

The co-founders announced the appointment of the new executive director of Grow Africa, William Asiko, effective from this month.

Asiko is transitioning from his role as chief executive officer of the Investment Climate Facility and, prior to that, as president of the Coca-Cola Africa Foundation, among other public- and private-sector roles.

“Grow Africa provides a unique platform for forging the connections between the public and private sectors needed to support the growth of the agriculture sector and unlock investment opportunities,” said Ibrahim Assane Mayaki, chief executive officer of the NEPAD Planning and Coordinating Agency.

“NEPAD looks forward to scaling the impact of Grow Africa’s work in support of CAADP and, in particular, in delivering on the ambitious Malabo Declaration targets around increasing agricultural productivity and regional trade, and improving food security.”

“Grow Africa is poised to enter an exciting new chapter, anchored within the African institutions and led by a new executive director,” said Sarita Nayyar, managing director of the World Economic Forum USA.

"The World Economic Forum is proud to have helped catalyze and develop this path-breaking partnership, and remains fully committed to supporting it going forward,” she added.