Posted on February, 19, 2025 at 10:24 am
The President and Chief Executive of the Africa Finance Corporation (AFC), Samaila Zubairu, has emphasised the need for unified efforts to address Africa’s $50billion expenditure on food imports. He noted that the imports primarily consist of essential staples such as cereals, oils, and grains.
He spoke yesterday at the Africa Business Forum 2025 held in Addis Ababa, Ethiopia, under the theme: “From Potential to Prosperity, Activating Regional Value Chains.”
According to him, Africa’s $50 billion spending on food imports is problematic not only because it drains vital foreign exchange reserves but also because it keeps Africa vulnerable to external shocks—fluctuating global food prices, supply chain disruptions and the impacts of climate change. He warned that the reliance on imports is projected to increase given its current trajectory.
“The sharp increase in food import expenditure highlights the urgent need for systemic change in how Africa approaches agricultural production, food systems and self-sufficiency. Agriculture is the backbone of most African economies. It contributes significantly to gross domestic product (GDP), with up to 22 per cent of GDP in some countries and employs over 60 per cent of the population. However, the sector remains plagued by low productivity, which is the lowest in the world. Smallholder farmers, who produce the bulk of Africa’s food, face numerous challenges: outdated farming practices, limited access to capital, and inadequate support in terms of credit and insurance,” he noted.
The AFC boss said Africa possesses tremendous agricultural potential. With more than 60 per cent of the world’s uncultivated arable land, he said the continent has all the necessary natural resources to emerge as a global leader in agriculture.
“In theory, this should position Africa as a food-secure region, a frontrunner in global food production, and a significant exporter of agricultural products. Nevertheless, this is not the reality. Currently, over 282 million Africans experience undernourishment, with millions more facing moderate to severe food insecurity. This alarming statistic is particularly striking when one considers the continent’s available resources,” he said.
He pointed out that one of the most significant impediments to food security in Africa is post-harvest losses, which can account for as much 40 per cent of perishable crops. These losses arise from inadequate storage, poor transportation systems, and inefficient supply chains.
Source: The Nation