http://agdes.blogspot.

com/ Wednesday, December 07, 2011

Promising Trends in the African Continent

Le Grand Marche Lome. (C) Rafael Merchan 2008 In a time where developed countries continue to shrink their development aid portfolios, exciting things are happening in Africa that may hold the answer to solve the continent's chronic poverty. The news comes from South Africa's Standard Bank with the publication of an excellent series of reports about Africa's unprecedented potential to catch up to the rest of the world. A recent editorial and article by The Economist also cover this promising trend, citing some of the reports' findings. The series, entitled "The Five Trends Powering Africa's Enduring Allure" provide a robust evidence about the continent's strategic position to meet the world appetite for food, natural resources, and manufacturing goods, all while reinvigorating local economies and bringing much needed revenue to the governments' treasures. More importantly, the report talks about how the urbanization process in the continent is resulting in a middle class with more disposable income. This extra cash is exactly what farmers need to market their product and diversified into more profitable activities. Although those living in remote communities and/or subsistence poverty will likely be passed by the emerging local markets, with the spread of ICT, better rural infrastructure, and more committed local governments, their future does not seem as grim as a decade ago. Finally, one of the reports highlights the central role of agriculture in this new development. Below are the main points made by the fantastic work of Standar's Bank Simon Freemantle on his report about Africa's Dormant Resource Potential.

Donor institutions have re-prioritised development assistance for African agriculture as a means to elevate socio-economic prosperity. Meanwhile, programmes such as NEPADs Comprehensive Africa Agriculture Development Programme (CAADP), and the Alliance for a Green Revolution in Africa (AGRA) are gaining momentum. Foreign land leasing deals are on the increase. Estimates vary, yet it is believed that between 50 mn and 60 mn ha of land in SSA has been purchased or leased since 2001. The majority of land leasing agreements are structured on a government-to-government basis. Unsurprisingly, Gulf States have been prominent. Meanwhile, Asian nations, particularly China and South Korea, are prioritizing Africa as a means to ensure longterm food security. Private and institutional investor interest is growing. For instance, London-listed Agriterra owns a variety of agricultural assets in Africa, including 14,000 ha of land for ranching, as well as a maize processing facility in Mozambique. And, Indian horticultural firm Karuturi Global has emerged as the worlds largest exporter of fresh cut roses on the spine of its investments in Kenya and Ethiopia. While there are meaningful objections to the nature and structure of much of the new investment in African agriculture, it is clear that the introduction of new capital, skills, and technology is an essential component in unlocking the continents ultimate allure. Africas agricultural sector has persistently underperformed for much of the past half centuryhaving been a net food exporter in the early 1960s, Africa is now a net importer. Between 1998 and 2008 the number of hungry people in SSA increased by 20%. And, between 1967 and 2007, farm output per person in SSA fell by one-quarter, even while it doubled in South Asia and tripled in East Asia. The reasons for Africas poor agricultural performance are complex, and myriad. For one, on average, African countries allocate only 4% of their budgetary expenditures to agriculture, compared to 14% in Asia. Only around 6.5% of African farmland is irrigated, compared to 40% in Asia. And, according to the World Bank, SSA uses just 11.6 kilograms (kg) of fertilizer per ha of arable land, compared to a world average of 119 kg/ha. Meanwhile, post-harvest grain losses due to inadequate storage and transport facilities in SSA are equal to USD4 bn per year around 15% of total output. Though much is required, and a collective inertia still in large part remains, there are increasing signs of how Africas agricultural fortunes are changing. Under CAADP, 22 African countries have committed to raise the budget share for agriculture to 10%. And, in partnership with AGRA, commercial banks are beginning to lend to small-scale farmers. According to OECD/Food and Agriculture Organization (FAO) projections, Africas production of wheat is expected to increase by 30%, rice by 75%, and milk and sugar by 35% within the next decade. Approximately 25% of the source of crop production growth in SSA between 2010 and 2050 will come from arable land expansion, 7% from increases in cropping intensity, and 68% from an increase in yields. Other estimates have posited that the value of Africas annual agricultural output could double by 2020, based largely on gains produced by new land placed under cultivation, yield growth, and the transfer to higher-value crops. Africas agricultural allure is vast, yet central to the realisation of commensurate socioeconomic benefits is an appreciation, on the part of African stakeholders, of how pivotal and intensely valuable this opportunity isand to position accordingly.

ICT in Agriculture Sourcebook and M-PESA

Finals are coming up and this blog is suffering from lack of updates -sorry for that folks. I promise to catch up with my weekly 'Seeds and Leaves' list of resources and links. I will also be writing about the Integrated Rural Development Projects of the 60' and 70's and more recent efforts for integrated interventions such as the Millennium Villages and others. Also, tomorrow I will be attending a presentation on Food Security in Latin America: Trends and Prospects. I'll report on that as well. In the meantime, I wanted to share with you an excited series of online forums to develop resources for "ICT in Agriculture" that the The World Bank and the e-Agriculture Community have put together. Look at some of the modules titles:
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Increasing Crop, Livestock and Fishery Productivity Through ICT" ICTs As Enablers of Agricultural Innovation Systems Broadening Smallholders' Access to Financial Services Through Farmer Organizations Work Better with ICT Strengthening Agricultural Marketing with ICT ICT Applications for Smallholder Inclusion in Agribusiness Supply Chains

I seems that every day there are new developments in the area of technology and its potentials to help farmers. I recently read a study conducted by The IRIS Center at the University of Maryland, College Park on the impact of M-PESA's mobile technology in rural transactions. The study, titled Transforming Mobile Money into Food in Kenya, states: M-PESA (receivers) appears to increase the likelihood of being able to pay for seeds, casual labor, and other inputs at the time it is most needed, and allows them to plant more of their fields. An M-PESA shopkeeper mentioned that many of her customers receive money quickly and plant early and fully. In the past, they might have missed the best quality seeds, fertilizers, or might not have had money in time to plant their fields completely. In addition, many MPESA receivers reported a savings in travel time and transport costs to obtain remittance money that they now could effectively use on productive agricultural activities. This has enabled them to plant their fields more fully and hire more labor when it can be most productive. Exciting and promising things happening in ICT. As always, comment or email interesting articles in international food security.

Renewed Prosperity, Enhanced Security: The Case for Sustained American Leadership in Global Agricultural Development
THE CHALLENGE: Feeding the World World population reached 7 billion on Monday, October 31. It is expected to exceed 9.5 billion by 2050. Today, while much of our attention is rightly focused on the glaring needs at home, another crisis is quietly brewing: the growing global demand for food and the deep poverty and

hunger of 925 million people threaten the basic human condition and Americas national interests. The solution to this crisis lies in the improvement of the agricultural systems in the developing world and so reducing poverty in the areas where it is deepest and making nations more economically secure the twin foundations of international peace and prosperity. Growth in the agricultural sector is twice as effective in reducing poverty as growth in other sectors. This solution also creates opportunities for American businesses while strengthening our national security. The U.S. Congress and Administration have recognized these benefits and since 2009 have demonstrated transformative leadership on global agricultural development. Yet, the current commitment to global agricultural development is fragile. U.S. leadership is critical to sustaining renewed international attention to these issues. At a time when it would be tempting to ignore the plight of those so distant, we must realize that they are not so far away. With demand for food expected to more than double in the next 40 years, our futures are tied together in a world facing formidable challenges, including scarce natural resources and the effects of extreme and fluctuating weather patterns amidst evergrowing populations. THE NECESSITY: How Global Agricultural Development is in Americas Interest Some Americans ask why the government should spend their hard-earned tax dollars on agricultural development abroad at a time of severe economic distress at home. The answer is simple: Americas prosperity and security will be improved by the reduced hunger, higher incomes, more vibrant markets, and stable societies that agricultural development will make possible
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Increasing opportunities for American business Hedging against failed states, violence, and extremism Strengthening American institutions and advancing scientific frontiers Harnessing the abilities and improving the lives of girls and women Meeting the rising global demand for food Protecting the environment and mitigating the impact of climate change

THE CALL: Sustaining American Leadership in Global Agricultural Development The U.S. government must sustain American leadership for global agricultural development. This means preserving support for U.S. global agricultural development programs and fulfilling the commitment the United States made at the LAquila summit in 2009 to dedicate $3.5 billion to agricultural development over three years. In nearly every international policy arena, including agricultural development, Americas leadership has proven essential to global action. When Americas leadership in global agricultural development faltered at the end of the 1980s, efforts of most others faltered as well. More recently, when America challenged the global community to reinvigorate its commitment to agriculture, members of the G-8 pledged $22 billion. The lesson is that without American leadership little will happen.

The cost to America to sustain its support for development is approximately $1 billion a year less than 1/10th of 1% of total U.S. spending. Even this small investment, when coupled with political leadership on the international stage, enables the U.S. to leverage the international communitys collective effort and advance U.S. political, economic, and security interests. The Congress and the Administration have already taken the first, critical steps. This leadership must now be sustained: the long-term gains far outweigh the costs.