Food report
(From left) Dr Agnes Kalibata, AGRA President; Edouard Ngirente; H.E Hailemariam Desalegn, AGRA Board Member and Dr. Musafiri Ildephonse

Report: Private sector contributes 80% to Africa’s food economy

THE 2024 Africa Agriculture Status report has revealed that the private sector has been the main driver of Africa’s food economy.

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The report launched in Kigali, Rwanda yesterday (Thursday, September 5) indicated that the private secotor drives drives approximately 80 per cent of Africa’s food economy, with MSMEs playing a dominant role in managing around 85 per cent of the agrifood value chains.

The report launched by AGRA in partnership with The Africa Food Systems Forum underscored the importance of supporting private enterprises to enhance food security and stimulate economic growth.

It indicated that urbanisation, rising food consumption, and shifts in dietary patterns have been key factors driving MSME growth; while urban areas in particular, is noted to present significant market opportunities for agrifood enterprises due to increased demand for diverse food products.

It added that the urban markets represent a major opportunity, with cities accounting for over 50 per cent of food purchases in many African countries. Adding that, rural markets are expanding as food purchases and market access improve.

Forum
The report dubbed “Harnessing the Private Sector for Food Systems Transformation in Africa” was launched part of efforts to build healthier, more inclusive, sustainable, resilient and equitable food systems in Africa.

The forum aimed at consolidating ideas to innovate, accelerate, scale and share lessons that will advance Africa food system, as well as address concerns of climate change, finace and infrastructure in Africa’s agrifood landscape.

This year’s forum is part of efforts to build healthier, more inclusive, sustainable, resilient and equitable food systems that have the power to accelerate the achievement of the Sustainable Development Goals in Africa by 2030.

It brought together about 5,000 stakeholders, including world leaders, investors, academia, farmer organisations, and the private sector, to collaborate with governments, development partners, and private sector in addressing the challenges by investing in infrastructure, supporting medium-sized enterprises (MSMEs), and implementing effective policies across Africa and the globe with youth and women at the helm.

Role of MSME

Speaking at the 2024 forum, President of AGRA, Dr. Agnes Kalibata highlighted the transformative role of MSMEs in shaping Africa's agrifood landscape according to Africa Agriculture Status Report 2024.
“By harnessing the power of the private sector, we can drive meaningful food systems transformation and achieve sustainable growth. This report provides actionable insights on supporting MSMEs to enhance their impact on food security and economic development.”

She emphasised, that the report marks a significant milestone in understanding the private sector’s influence on Africa’s agrifood systems as it showcases the crucial impact of MSMEs in driving agricultural productivity and economic development. Adding, the goal of AGRA was to “illustrate how these enterprises are vital drivers of growth and innovation”.

Challenges and Recommendation

The President of AGRA highlighted that although MSMEs have played significant role in the Africa food economy, it also faced several challenges including “inadequate infrastructure, limited access to finance, and regulatory barriers”; pointing specifically at the “poor road networks, insufficient wholesale markets, and unreliable electricity” which have hindered MSME growth and productivity.

She urged government and invested to target investments in infrastructure, enhance financial access, and streamlined regulatory processes, and coordinate agro-industrial policy strategy to support MSMEs and improve their operational environment.

Dr Kalibata indicated that MSMEs per the report are major employers in the agrifood sector, providing up to 60 per cent of employment in some regions; hence, she called on African givernment’s to adhere to extensive collaboration to help achieve greater sustainability and resilience.

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