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What is the Future for Small Farms in Africa and Renewed Role for Farmers?

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  • 1. WHAT IS THE FUTURE FOR SMALL FARMS IN AFRICA AND RENEWED ROLE FOR FARMERS? Mabel Ndakaripa Munyuki-Hungwe (PhD) Barefoot Education for Afrika Trust ndakaripahungwe@gmail.com
  • 2. African smallholders    Africa has shown some impressive growth rate in real GDP (5%) Growth due to enabling policy and business environment, favourable commodity prices (in some) and improved peace and stability (AfDB, 2013) Success: central Kenya: coffee, dairy, vegetable; South west Nigeria: tomatoes & peppers; Ghana (Brong-Ahafo) tomatoes achieving higher gross margins from land and labour in commercial enterprises
  • 3. African smallholder farmers    But this has not translated to jobs, wealth, income growth, poverty reduction & food security needed to transform Africa 388 million Africans still live in poor conditions, 239 million are under nourished and of the 20 least competitive economies, 14 are African (WEF, 2012) But Africa possesses greatest potential to create wealth and transform especially through agriculture
  • 4. Africa Real GDP Growth Rates by Sub Region 2000-2060 Source: AfDB Database and Projections
  • 5. African agriculture     Agriculture still the main stay – employment & livelihoods of many economies Agriculture contributes to foreign exchange earnings Investment is therefore crucial African leaders through CAADP have also in their part placed agriculture on the agenda in development to improve food & nutrition security, increasing incomes in African communities (what is needed is more implementation)
  • 6. Small holder farmers       Globally there are 450 million smallholder farmers Africa has about 63 million such farmers Income ranges between $170 -$570 per annum Many farm on less than 2 hectares Many only market produce within their locale Less than 10% have entered lucrative export value chains
  • 7. But Small farms offers opportunities Can:  use land more efficiently % of all farms Farm size (ha) Africa <2  produce cheaper and more nutritious foods  increase own incomes and productivity  promote equity, hunger, and poverty reduction 80 2-10 15 10-100 3 >100 0 Source: Calculations based on most recent data available from FAO Agricultural World Census from late 1980s-2000s AND average farm size in Africa will continue to decline due to rural population growth therefore: SMALL FARMS HAVE BECOME THE NEW FORCE FOR AFRICAN AGRICULTURAL TRANSFORMATION
  • 8. New challenges facing African smallholders     Poor access to inputs (SSA pay high prices for fertilizer hence use less in the world), credit, support services, knowledge to boost production Smallholders face risks to climate shocks, pest & disease outbreaks, have limited access to risk reduction strategies (safety nets) Some face poor information, resources and bargaining power Land scarcity, acquisitions as they compete with the state, multi national corporation, other communities
  • 9. Challenges & opportunities     Africa increasingly being rapidly urbanised trends show that by 2020-2030 most of Africa will predominantly urbanised (Reardon et al, 2013) Emergence of an African middle class economy both rural and urban with more non staple foods: wheat, processed foods, milk, meat, poultry, fruits and vegetables African youths an untapped resource yet 40% of workforce is under 23 years of age (Rukuni, 2013) Almost every smallholder farmer has a mobile
  • 10. Source: Adapted from Haggblade, 2012
  • 11. Smallholders opportunities “Meeting global increases in demand for agricultural products will be difficult without sourcing from African smallholder farmers (GIZ)  Africa has the potential to increase annual agriculture production output from $230 billion to $800 billion by 2030 (McKinsey, 2010) 
  • 12. PPP Partnerships   Mobilizing Private Sector Finance through innovative and targeted Public Private Partnerships is central to unlocking the potential of African Agriculture. Need for better negotiation skills among African farmers especially farmer organisations
  • 13. Promote Transformative and Targeted public-private partnerships
  • 14. The 12 pillars of Competitiveness (Source: World Economic Forum) Basic Requirements •Institutions •Infrastructure •Macroeconomic stability •Health & education Efficiency Enhancers •Technological readiness •Higher education & training •Goods market efficiency •Labour market efficiency •Financial market sophistication •Market size Innovation & Sophistication factors •Business sophistication •Innovation factor driven economyAGRICULTURE MINING efficiency – driven economy MANUFACTURING innovation –driven KNOWLEDGE economy
  • 15. New roles for African small farmers         Rebuild agriculture production capacity Revamp the agro industry Priority to diversifying into cash and commercial commodities Target value-chains high end markets Add value locally and own the FARM TO SUPERMARKET VALUE CHAIN Increase competitiveness of the African Agricultural Sector from production to manufacturing Major paradigm shift (transformation) needed More policy/advocacy representation
  • 16. Prime movers necessary for agricultural development       Human capital development – professional, managerial and technical skills necessary in the sector Sustained growth of biological capital (improved genetic and crop and animal husbandry) and physical investments in dams, irrigation and roads Improved performance of institutions (marketing, credit, research, extension and settlements) currently many key agricultural institutions under stress Favourable economic policy environment and political support for agriculture over long terms (CAADP) New technology produced by private and public investments in agricultural research Land/agrarian reform – improved tenure security and wealth creating capacity than before
  • 17. Thank you! Asante Sana! Merci!