Posted on April, 5, 2022 at 09:23 am
The latest survey of the continent’s agribusiness Chief Executives has seen a sharp rise in the number of industry leaders calling for immediate action on climate change adaptation for smallholder farmers.
Improved access to more flexible finance for the sector and increasing productivity on smallholder farms continue to be among the top priorities of the continent’s agribusiness sector. Business leaders also want policy actions to be introduced to transform the sector and boost productivity. Weak policy, legal and regulatory environments were identified as a barrier to growth in the sector and SMEs called for a more enabling environment to support their operations and growth.
With agribusiness leaders showing concerns about the effects of climate change on the sector, the 2022 Africa Agribusiness Outlook recommends that businesses develop innovative solutions which will enhance resilience to the impacts of climate change. These include implementing and scaling business models and innovations that reduce the risk of climate change and ecological damage.
The findings were revealed in the 2022 Africa Agribusiness Outlook released by AGRA and KPMG East Africa. Informed by surveys with agribusinesses in 13 countries across the continent, the report serves as a barometer of the operating environment in the region.
Speaking during the launch of the report, AGRA President, Dr. Agnes Kalibata, said: “Agribusiness holds the key to Africa’s economic recovery in a challenging world. The resilience and determination of the continent’s agribusinesses to keep moving forward are inspiring. At AGRA, we are committed to supporting the development of policies and innovative financial solutions to help address challenges that SMEs and businesses, in general, continue to face.”
The report notes that increasing agricultural output is key for the continent’s economic recovery from the effects of the pandemic. The agribusinesses surveyed faulted financial services providers for setting near impossible terms and conditions for accessing financing even when they qualify. They recommended that the private commercial finance institutions and donors, including philanthropists, consider blending finance to create concessional finance that delivers sufficient returns and provides the necessary patient capital that so many agribusinesses require.
Benson Ndung’u, Chief Executive Officer and Senior Partner, KPMG East Africa noted: “Any response to any challenge that the agricultural sector faces, requires a systemic multi-sectoral approach. Collaborations and partnerships will help drive agricultural transformation since they lead to knowledge sharing which is key for Africa’s agribusinesses in supporting the building of healthier, more sustainable, and more equitable food systems.”
The surveys found SMEs are also keen on increased investments in affordable smart technologies for smallholder farmers as part of a measure to transform agriculture on the continent. Knowledge gaps emerged as a major challenge facing agribusinesses in Africa today with sixty percent of the CEOs mentioning investment in people as one of the key agribusiness investment priorities in the year ahead.
Source: The New Times