Posted on September, 18, 2017 at 09:29 am
The World Bank report on Enabling the Business of Agriculture has ranked Kenya the best in Africa.
The report covers 62 countries in seven regions, and presents topic scores in eight of the different areas measured: Seed, fertilizer, machinery, finance, markets, transport, water and ICT. Higher topic scores represent a larger number of good practices observed in the laws and regulations measured by each topic.
According to the survey, Kenya obtained an average score of 64 per cent, trouncing some of the continent's economic heavyweights like Morocco, Nigeria and Egypt, who scored an average of 59.2, 50.4 and 37.9 per cent respectively.
In the water category, Kenya almost doubled the global and continental averages of 49 and 45 per cent, registering 85.04 per cent, surpassing that of high-income countries which stands at 71 per cent. Other categories where Kenya was above the global average include seeds, ICT and finance, where it scored 79.2, 77.78 and 74.3 points respectively. Global average in those areas is 56, 59 and 52 points in that order.
Kenya scored 56 points in the machinery category, 68.6 in transport but failed to meet the global minimum in the market and fertilizer categories, scoring 32.9 and 41 per cent respectively. The poor market scores for Kenya and Africa perhaps explain why 30 per cent of food produced in the continent does not reach market place.
The study blames this on poor road and information infrastructure, trade barriers and minimal states’ commitment to the agricultural sector.
The report noted that farmers often have few opportunities to market their products or face additional challenges to do so.
It further urged governments, especially in developing nations, to put in measures that enhance farmer coordination such as cooperatives and online trade portals.
‘’It is ironical that food produced in developing countries is going to waste, yet those countries are highest food importers in the world,’’ the World Bank said.
The report appealed to the Kenyan government to build on the country’s high internet and mobile connectivity, estimated to be above 70 per cent, to come up with measures to improve farmers’ market accessibility.
A recent Africa Agriculture Status Report indicated that the power of entrepreneurs and the free market is driving the continent’s economic growth from food production as business wakes up to opportunities presented by its rich food market valued at $1 trillion (about Sh100 trillion) per year.
Even so, the African Development Bank estimates the continent’s annual food import bill at $35 billion (Sh3.5 trillion) which is expected to rise to $110 billion (Sh11 trillion) by 2025.
Source: The Star