Economy
Africa’s Agric Production Systems Need Radical Change—Karingi
By Modupe Gbadeyanka
“Regardless of the approach or transformative pathway chosen to change food systems and trade regimes, African countries need to undertake radical change in agricultural production systems, adopt agribusiness and promote regional agricultural value chains as a vein for regional integration.” The statement was made by Mr Stephen Karingi, Director of the ECA’s Regional Integration and Trade Division this week in Cote d’Ivoire, at the opening of a symposium themed: Implementing Agro-Industrialization and Regional Value Chains for Africa’s Agricultural Transformation.
“Despite a handful of landmark political commitments, Africa is the only region in the world that has witnessed an increase in the number of food insecure people and has a mushrooming agricultural and food trade deficit,” said Mr Karingi.
He noted that the food situation continues to worsen in real terms with the number of chronically food insecure reaching 229 million in 2016. “This is about 49 million more people at risk compared to 1990 – almost one of every four in Africa, excluding North Africa,” he said.
Mr Karingi indicated that the progress in the levels of agricultural productivity has been uneven across countries, ranging from an increase of 325% in Nigeria to a decrease of about 40% in Zimbabwe and proposed that rethinking agricultural transformation would involve the adoption of a three-pronged approach that should systematically and comprehensively consider three essential elements: farming systems, agribusiness and regional value chains.
On efficient farming systems he said that Africa needs to produce more food and agricultural products through systems that can produce more with less finger print; that are resilient to climate variability and external shocks and that are more responsive to changing needs.
With regard to adopting an agribusiness growth strategy, he said it fits both the resource endowment of most African economies and the conditions surrounding the overwhelming majority of the poor who live in rural areas and depend on agriculture for their livelihood.
“Agribusiness is substantially labour-intensive in terms of creating jobs and generating value added; in addition, it strengthens forward and backward linkages,” he said, adding: “This entails a paradigm shift from supply to a demand-driven market, in which the agribusiness value chain, covering farming production, processing and services and shifts the transitional focus from production to downstream stages of value chains.” He underscored the benefits of a sustained demand for agricultural products, stating that a vigorous agribusiness would fuel agricultural production and productivity.
On the third approach, Mr Karingi said that promoting regional agricultural value chains is a critical step towards creating incentives for meaningful private sector investment, allowing the full realization of competitiveness gains and intra-regional trade potential for African agriculture.
ECA has embarked, jointly with the AUC, on a process to develop a Draft Africa Policy Framework, Applications Platform and Guidelines for the Development and Promotion of Regional Agricultural Value Chains (RAVCs). The Policy Framework aims to provide principles, tools and guidelines for Regional Economic Communities and AU member states to guide policies and regulations that promote a viable sustainable agricultural development through fostering RAVCs. The framework builds on the findings of 5 regional assessment studies, spanning over 16 African countries, of value chains of some of the most important strategic commodities. These studies, through a comprehensive approach, identified the potential and challenges for the development of regional value chains and underscored the need to develop a unified coordination and implementation arrangement.
The Symposium is jointly organized by the ECA, the Government of Cote D’Ivoire, African Union’s Trade and Industry Department and the African Development Bank.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has said the lender’s efforts to tame inflation and pressures on the foreign exchange market will begin to yield results by the first quarter of 2025.
Mr Cardoso spoke during a press conference in Abuja to announce the outcomes of the two-day meeting of the Monetary Policy Committee (MPC) which raised the Monetary Policy Rate (MPR) for the sixth time by 25 basis points to 27.50 per cent.
He said the apex bank is using every possible strategy to tame inflation with a firm assurance that ongoing monetary tightening measures, which it has done six times alone this year, will have a favourable outcome.
The CBN rationalised that the 25 basis points hike is targeted at addressing rising inflation, which stood at 33.88 per cent as of October 2024.
“The central bank is resolute and committed to continuing to fight the war against inflation and there is no going back on that.
“We are going to deploy everything in our arsenal to ensure that we are able to tame it. And of course, this entails the return to orthodox monetary policies,” Cardoso stated amid agitations of rising interest rates on the economy,” the central banker said.
According to him, the Committee was unanimous in its decision to further tighten policy, though members took a decision to retain the asymmetric corridor around the MPR at +500/-100 basis points; Cash Reserve Ratio of Deposit Money Banks at 50 per cent and Merchant Banks at 16 per cent; as well as the Liquidity Ratio at 30 per cent.
He also said the MPC was particularly concerned that all inflationary measures also inched up on a month-on-month basis, suggesting the persistence of price pressures, with attendant adverse impacts on the income and welfare of citizens.
Despite this, Mr Cardoso’s tone was optimistic, forecasting that current measures would be able to tame prices in coming months due to lag effect.
“It is important for people to understand that there is a time lag between when you implement policies and when they have an impact. That time lag can be anything up from six to nine months to even a year. Our own perspective is that we expect to see greater results in the first quarter of 2025.”
He said in addition, that the apex bank is working very assiduously with some of the relevant agencies to ensure that structural impediments to growth are handled appropriately.
“We are ensuring that we are on top of the game and that the foreign exchange market operates at its most optimal manner to reflect the true value of the currency, and of course, we have price discovery.”
By Modupe Gbadeyanka
The Nigerian National Petroleum Company (NNPC) Limited has been directed to quickly reactivate the second unit of the Port Harcourt Refinery as well as the refineries in Warri and Kaduna.
This directive was given by President Bola Tinubu via a statement issued on Tuesday by his Special Adviser of Information and Strategy, Mr Bayo Onanuga.
Mr Tinubu issued this order in reaction to the commencement of crude oil processing by the Port Harcourt refinery in Rivers State yesterday.
The facility began official loading of petroleum products, including the premium motor spirit (PMS), otherwise known as petrol, yesterday after gulping about $1.5 billion for rehabilitation.
This process started in 2021 under the administration of President Muhammadu Buhari, who his successor praised for “initiating the comprehensive rehabilitation of all our refineries.”
In the statement yesterday, the President noted that the reactivation of the remaining refineries would “significantly enhance domestic production capacity alongside the contributions of privately-owned refineries and make our country a major energy hub, with the gas sector also enjoying unprecedented attention by the administration.”
He affirmed his “administration’s determination to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that lacks the ability to refine its own resources for domestic consumption.”
Highlighting the values of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, President Tinubu called upon individuals, institutions, and citizens entrusted with responsibilities to maintain focus and uphold trust in their service to the nation.
“In alignment with the Renewed Hope Agenda focused on shared economic prosperity for all, the President reaffirms his administration’s commitment to achieving energy sufficiency, enhancing energy security, and boosting export capacity for Nigeria,” the statement said.
Mr Tinubu used the opportunity to laud the NNPC under the leadership of Mr Mele Kyari for his “unwavering dedication and commitment” in overcoming challenges to achieve this milestone.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 1.18 per cent, with the Unlisted Security Index (USI) crossing the 3,000 mark after it went up by 35.24 points on Tuesday, November 26 to 3,032.92 points from the 2,997.68 points recorded in the previous session.
At the close of transactions yesterday, the market capitalisation increased by N12.36 billion to settle at N1.063 trillion, in contrast to Monday’s closing value of N1.050 trillion.
During the session, FrieslandCampina Wamco Nigeria Plc gained N3.31 to sell at N43.90 per share versus the N40.59 per share it traded a day earlier, and 11 Plc appreciated by N16.75 to end the session at N230.00 per unit versus the preceding closing rate of N213.25 per unit.
On the flip side, Afriland Properties Plc slipped by 11 Kobo to sell at N15.81 per share, in contrast to the N15.92 per share it was transacted a day earlier.
There was a slump in the volume of securities traded in the session by 80.2 per cent to 327,425 units from the 1.7 million units traded in the preceding session, but there was a rise in the value of transactions by 141.9 per cent to N15.7 million from the N6.5 million traded on Monday, and the number of deals decreased by 55.0 per cent to nine deals from the 20 deals carried out a day earlier.
At the close of business, Geo-Fluids Plc remained the most traded stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.
Similarly, Aradel Holdings Plc maintained its position as the most active stock by value (year-to-date) with a turnover of 108.7 million units worth N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.
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