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This October， the agriBusiness Forum 2013 takes place in Kigali， Rwanda， co-hosted by EMRC， an international non-profit organization that promotes sustainable development in Africa， and the Ministry of Agriculture and Animal Resources of Rwanda. To delve deeper into the role that agribusiness is playing in sustainable and inclusive growth in Africa， ChinAfrica spoke to EMRC Senior Program Manager，
Caterina Giuliano. Answers edited for space.
ChinAfrica： how important is developing africa’s agricultural sector for the continent’s economic growth？
Caterina Giuliano： The African continent is fast becoming a major global economic force， with the agricultural sector playing a significant role in this trend. With no less than six of the world’s 10 fastest growing economies over the past decade， Africa is attracting increasing investment， reaching$55 billion in 2011. The strategic role of agriculture in Africa’s social and economic development cannot be overstated. The sector accounts for 32 percent of the continent’s GDP. Agriculture is the backbone of most African economies. It employs around 60 percent of Africa’s labor force and as such， inclusive growth in agriculture is key to poverty eradication and sustainable human development in the region. In other words， agriculture is critical for Africa.
This year’s theme for the agriBusiness Forum is“The agri-Food sector： a Catalyst for sustainable and inclusive Growth in africa.” how can africa’s agri-food sector be made sustainable？
For the agri-food sector to be sustainable there are some key essential policies which must be adhered to. Sustainability also means inclusivity - which means linking small farmers to large farming conglomerates whilst sharing access to markets. In addition， the agri-food sector is not a sector reserved solely for farmers； all the players in the value chain must be taken into account： input suppliers （seed， fertilizer， machinery）， services in packaging， processors， marketers， transporters， extension and food services， financiers and others involved in the agribusiness value chain.
What are the current challenges facing africa in relation to attracting investment into the agriFood sector？
For investment to occur there needs to be an active private sector. To have an active private sector there must be a cohesive and favorable business climate. Parallel to this， the most important challenge for governments is how to make growth inclusive， in other words， how to create employ- ment opportunities and ensure that growth benefits all sections of society， especially the poor （at the bottom of the pyramid）. It is common knowledge that Africa’s agricultural sector is faced with dramatically low levels of productivity coupled with high rates of post-harvest losses. Once small farmers and farming communities manage to establish stable growth and governments provide sustainable policies for these communities， then investors， be it regional or foreign， will be more inclined to invest. In addition， political stability and sound， corruptfree institutions are key factors to attract investors.
Investors look at the basics： infrastructure， stability， potential for growth， a trained youth population and disposable income. Without these there is no real incentive to consider real long-term investments.
how can small farmers/women farmers be involved in growing the agri-Food sector？
I would suggest that looking at （addressing） the lack of access to finance， the lack of access to markets， lack of proper infrastructure such as roads， transport and the lack of access to cost effective appropriate technology should be a top priority.
Small farmers must be included in the larger scale projects and in national and regional agricultural policies.
They are the backbone of the agri-food sector. If we cannot understand their needs and if we cannot provide them with basic elements to get their businesses off the ground， then the entire sector will not be able to achieve its full potential. Their exclusion within the value chain will hamper the growth of agriculture.
What needs to be done about african countries trading agricultural products amongst themselves to manage the continent’s food security？ One of this year’s EMRC Africa Finance & Investment
Forum’s key focus points was how to increase regional and intra-regional trade within Africa. With intra-regional trade constituting only 11 percent of the continent’s total trade flows， there is huge untapped potential which can be realized by continuing to remove trade barriers， and building regional trade blocks， notably by improving infrastructure and reducing restrictions on the movement of goods and services between neighbors and regions. The private sector will be a key driver for these developments. Efforts must also be made in terms of financing and providing adequate inroads for millions of Africans wanting to grow their businesses and trade with each other.
Caterina Giuliano. Answers edited for space.
ChinAfrica： how important is developing africa’s agricultural sector for the continent’s economic growth？
Caterina Giuliano： The African continent is fast becoming a major global economic force， with the agricultural sector playing a significant role in this trend. With no less than six of the world’s 10 fastest growing economies over the past decade， Africa is attracting increasing investment， reaching$55 billion in 2011. The strategic role of agriculture in Africa’s social and economic development cannot be overstated. The sector accounts for 32 percent of the continent’s GDP. Agriculture is the backbone of most African economies. It employs around 60 percent of Africa’s labor force and as such， inclusive growth in agriculture is key to poverty eradication and sustainable human development in the region. In other words， agriculture is critical for Africa.
This year’s theme for the agriBusiness Forum is“The agri-Food sector： a Catalyst for sustainable and inclusive Growth in africa.” how can africa’s agri-food sector be made sustainable？
For the agri-food sector to be sustainable there are some key essential policies which must be adhered to. Sustainability also means inclusivity - which means linking small farmers to large farming conglomerates whilst sharing access to markets. In addition， the agri-food sector is not a sector reserved solely for farmers； all the players in the value chain must be taken into account： input suppliers （seed， fertilizer， machinery）， services in packaging， processors， marketers， transporters， extension and food services， financiers and others involved in the agribusiness value chain.
What are the current challenges facing africa in relation to attracting investment into the agriFood sector？
For investment to occur there needs to be an active private sector. To have an active private sector there must be a cohesive and favorable business climate. Parallel to this， the most important challenge for governments is how to make growth inclusive， in other words， how to create employ- ment opportunities and ensure that growth benefits all sections of society， especially the poor （at the bottom of the pyramid）. It is common knowledge that Africa’s agricultural sector is faced with dramatically low levels of productivity coupled with high rates of post-harvest losses. Once small farmers and farming communities manage to establish stable growth and governments provide sustainable policies for these communities， then investors， be it regional or foreign， will be more inclined to invest. In addition， political stability and sound， corruptfree institutions are key factors to attract investors.
Investors look at the basics： infrastructure， stability， potential for growth， a trained youth population and disposable income. Without these there is no real incentive to consider real long-term investments.
how can small farmers/women farmers be involved in growing the agri-Food sector？
I would suggest that looking at （addressing） the lack of access to finance， the lack of access to markets， lack of proper infrastructure such as roads， transport and the lack of access to cost effective appropriate technology should be a top priority.
Small farmers must be included in the larger scale projects and in national and regional agricultural policies.
They are the backbone of the agri-food sector. If we cannot understand their needs and if we cannot provide them with basic elements to get their businesses off the ground， then the entire sector will not be able to achieve its full potential. Their exclusion within the value chain will hamper the growth of agriculture.
What needs to be done about african countries trading agricultural products amongst themselves to manage the continent’s food security？ One of this year’s EMRC Africa Finance & Investment
Forum’s key focus points was how to increase regional and intra-regional trade within Africa. With intra-regional trade constituting only 11 percent of the continent’s total trade flows， there is huge untapped potential which can be realized by continuing to remove trade barriers， and building regional trade blocks， notably by improving infrastructure and reducing restrictions on the movement of goods and services between neighbors and regions. The private sector will be a key driver for these developments. Efforts must also be made in terms of financing and providing adequate inroads for millions of Africans wanting to grow their businesses and trade with each other.