WEF_GrowAfrica_AnnualReport2014

Review
of 2013
REVIEW OF 2013
Green shoots: Agricultural partnerships
take root across Africa
“Time for talking is over. Time for action is now.”
The sight of green shoots emerging from
a tilled field fills a farmer with hope. It
also means hard work ahead to ensure
the crop delivers a bountiful harvest. For
2013, companies reporting to Grow Africa
on their agricultural investments evoke a
similar picture, but at a continental scale.
Investments linked to Grow Africa offer a limited but
fascinating window on what is happening with the
business of African agriculture. They suggest that
the private sector is demonstrating unparalleled
dynamism and commitment towards the sector.
Investment commitments within the Grow Africa
partnership have more than doubled to a total of $7.2
billion, with most to be converted in the next three to
five years. Investment is happening, and, for 2013,
companies reported $970 million worth against their
commitments – the majority of which came through
African companies 1 . 80% of investments report being
complete, on plan or only facing minor problems with
implementation. Where early investments are proving
successful, many companies are preparing to scale up
their operations.
Companies express a long-term strategic view on
African agriculture. Encouragingly, this includes a
serious intent to engage smallholders commercially and
to add value along the value chain through processing
and serving domestic markets. For 2013, companies
reported reaching 2.6 million smallholders through new
services, sourcing, contracts or training; and creating
33,000 new jobs.
Some pioneering companies are also taking a strategic
commercial interest in fostering a next generation of
youth entrepreneurs for the sector, and in engaging
women smallholders, who are reported as more reliable
contractual partners than men. Overall however, when
reporting was gender disaggregated, it suggests
that men are benefitting more directly from new jobs
(58%) and smallholder engagement (79%), which
raises important questions about how intervention and
innovation can promote greater women’s economic
empowerment.
Partnering to scale up
Whilst progress is generally encouraging, it appears
inadequate to the scale required for transformation.
Roughly 600 million Africans depend on agriculture
for their livelihoods 2 , of which Grow Africa partners
reached only a few percent. Similarly, sourcing by Grow
Africa partners was only marginal when compared
against the $40+ billion of estimated annual food
imports for Africa 3 . Despite strong interest in African
agriculture, private-sector actors – whether large or
small, domestic or international – report that the pace
of their growth and investment is curtailed by the
enduringly high risks and high costs of doing business
within the sector.
Partnership is at the root of the new wave of
successful agricultural investments. Working together,
tripartite partners are reducing risks and costs for
African agriculture, and it is this that has accelerated
investment to date. Now partners are calling for further
collaboration to unlock a truly transformative level of
growth and deliver value for investors, producers and
consumers alike. Only then will agriculture create jobs,
reach smallholders, and economically empower women
at the scale that Africa aspires. Grow Africa partners
highlight three general areas for catalytic action:
•¡
innovating commercially sustainable agricultural
business models;
•¡
making markets competitive; and
•¡
elevating the pace and quality of multi-stakeholder
collaboration.
H.E. John Mahama, President of Ghana
1 Nigeria dominates Grow Africa’s aggregated figures with over half of all planned and converted investment, and an economy larger than all others combined.
2 International Food Policy Research Institute – IFPRI (2006) Agriculture and achieving the Millennium Development Goals. Washington, DC.
3 Food and Agriculture Organization - FAO (2011) Why has Africa become a net food importer? Rome.
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