10 May 2013
Companies from around the world committed US$3.5-billion in investments to Africa’s agricultural development over the last year under the stewardship of the Grow Africa partnership, it was reported at the 2013 Grow Africa Investment Forum in Cape Town on Thursday.
The forum, which took place on the first day of the 23rd World Economic Forum on Africa, saw 126 companies taking part, including 58 African and 60 international companies, plus a further eight from other regions, including South Asia and the Middle East.
Grow Africa is a partnership of the African Union Commission, Nepad and World Economic Forum that seeks to accelerate private-sector investment for sustainable growth in African agriculture.
It does this in part by helping African countries to create investment environments conducive to partnership-based investments in agriculture “that make a real difference to incomes, food security and broader development”.
According to the Grow Africa annual report, released on Thursday, last year marked a major shift in the quality and quantity of private-sector commitments to the continent’s agricultural development.
Of the $3.5-billion in investments committed in eight African countries in 2012, more than $60-million had so far been invested in activities bringing smallholder farmers into commercial, market-based farming, Grow Africa reported.
Approximately 270 000 million tonnes of commodities were sourced within Grow Africa partner countries – the vast majority from smallholders – with the equivalent of around $300-million in sales from these farmers being fed into the market system.
In addition, the annual report stated, almost 800 000 smallholder farmers were reached with a mix of training, sourcing and service provision.
Grow Africa would now be moving into “an operational phase”, channeling the investment it had generated directly into projects.
“In recognition of this step and the strength of Grow Africa as a platform to bring much-needed investment into Africa’s agriculture, the United States Agency for International Development (USAid) committed $9.5-million to Grow Africa this week,” the partnership said.
“These funds will be used to drive Grow Africa fully into its operational phase, including setting up a secretariat in Africa.”
Announcing the grant at Thursday’s forum, USAid administrator Rajiv Shah said USAid was pleased to support “such a results-oriented initiative that is successfully demonstrating how the private sector can help to drive a partnership-based approach to developing Africa’s agricultural potential”.
Philip Kiriro, chairman of Kenya’s Eastern Africa Farmers Federation, told delegates that innovative partnerships were “demonstrating that inclusive business models can be commercially competitive, while integrating smallholders into value chains.
“Grow Africa has reached 800 000 African smallholders, but there are still more than half-a-billion that we have not. 2013 must focus on scaling up,” Kiriro said.
SAinfo reporter
