World
Can Africa Prioritise and Solve its Food Security Challenges?
By Kestér Kenn Klomegâh
Global food security, especially in Africa, has been in the media publications these past few months. While a few outspoken African leaders shifted blame to the Russia-Ukraine crisis, others focused on spending the state budget to import food to calm rising discontent among the population. Some experts and international organizations have also expressed the fact that African leaders have to adopt import substitution mechanisms and use their financial resources to strengthen agricultural production systems.
At the G7 Summit in June, President Biden and G7 leaders announced over $4.5 billion to address global food security, over half of which will come from the United States. This $2.76 billion in U.S. government funding will help protect the world’s most vulnerable populations and mitigate the impacts of growing food insecurity and malnutrition, including from Russia’s war in Ukraine, by building production capacity and more resilient agriculture and food systems around the world and responding to immediate emergency food needs.
U.S. Congress allocated $336.5 million to bilateral programs for Sub-Saharan African countries, including Burkina Faso, the Democratic Republic of the Congo, Ethiopia, Ghana, Guinea, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Somalia, South Sudan, Tanzania, Uganda, Zambia, and Zimbabwe and regional programs in southern Africa, west Africa, and the Sahel.
Also, of this $2.76 billion, USAID is programming $2 billion in emergency food security assistance over the next three months. As of August 8, 2022, the U.S. has provided nearly $1 billion specifically for countries in Africa toward this $2 billion commitment, including the Central African Republic, the Democratic Republic of the Congo, Ethiopia, Kenya, Mali, Mozambique, Nigeria, Somalia, South Sudan, and Uganda.
That compared, Russia plans to earn (revenue) $33 billion by the end 0f 2022 through massive export of grains and meat poultry to Africa. The plan aims to marginalise local production, cut out foreign contributions to support livelihoods through local production and make African leaders spend their hard-earned revenue on food imports instead of supporting agricultural production.
Primarily, Russia needs to export an estimated 50-60 million tonnes of grain this agricultural year from July 2022 to June 2023. Agriculture Minister Dmitry Patrushev and Algerian Agriculture and Rural Development Minister Mohamed Abdelhafid Henni, co-chairing the Russian-Algerian Intergovernmental Commission in late September, agreed on increased wheat exports from Krasnodar Territory and Siberia regions to Algeria.
The Agriculture Ministry’s Agroexport Center said in a report that Russia has to increase exports to Angola. The estimated potential for Russian agribusiness exports to Angola is $100 million per year, including grains, foremost wheat, soybean oil, beef, poultry, edible pork by-products, yeast and other agribusiness products.
Agroexport Federal Center for Development of Agribusiness Exports, in close partnership collaboration with Trust Technologies and the business expert community, drew up a concept for the development of exports of principal agricultural products (grain, dairy, butter, meat and confectionery products) to promising markets of African countries. It is estimated to build on the total volume of exports to African countries, which in 2021 amounted to $33 billion.
“The African continent is an interesting and promising area for developing Russian food exports. However, when working in this market, it is important to take into account a number of factors: strong differences in the level of welfare of the population, political instability in some countries, state regulation of prices for a number of goods, et cetera,” Agroexport head Dmitry Krasnov was quoted as saying in the statement and reported by Russian media including the Interfax News Agency.
By increasing grain exports to countries in Africa, Russia aims to enhance the competitiveness of Russian agricultural goods in the African market. According to the business concept report, five African countries have been identified and chosen as target markets for the delivery of agricultural products. These are Angola, Cameroon, Ethiopia, Ghana, Kenya, Mauritius, Nigeria, Tunisia and South Africa.
In sharp contrast to food-importing African countries, Zimbabwe has increased wheat production, especially during this crucial time of the current Russia-Ukraine crisis. This achievement was attributed to efforts in mobilizing local scientists to improve the crop’s production. Zimbabwe is an African country that has been under Western sanctions for 25 years, hindering imports of much-needed machinery and other inputs from driving agriculture.
At the African Green Revolution Forum (AGRF) summit held in September in Rwanda, President Emmerson Mnangagwa told the gathering that “we used to depend on importation of wheat from Ukraine in the past, but we have been able to produce our own. So, the crisis in that country has not affected us. There is an urgent need to adopt a progressive approach and re-purpose food policies to address the emerging challenges affecting our entire food systems.”
There are various local efforts to attain food security on the continent. For instance, the African Development Bank’s (AfDB) African Emergency Food Production Facility (AEFPF) to increase the production of climate-adapted wheat, corn, rice, and soybeans over the next four growing seasons in Africa. The International Fund for Agricultural Development’s (IFAD) Crisis Response Initiative (CRI) helps protect livelihoods and build resilience in rural communities. The Africa Adaptation Initiative (AAI) to develop a pipeline of bankable projects in Africa to leverage private equity.
The Africa Risk Capacity (ARC) Africa Disaster Risk Financing Programme (ADRiFi) helps African governments to respond to food system shocks by increasing access to risk insurance products. A fertilizer efficiency and innovation program to enhance fertiliser use efficiency in countries where fertilizer tends to be over-applied. Support for the UN Food and Agriculture Organization (FAO) will fund soil mapping spanning multiple countries to provide information allowing for wiser water usage, greater fertilizer conservation, and improved climate resilience impacts.
Significant to note that during the business conference held at the Atlantic Council’s Africa Center on April 22, African Development Bank Group President Dr Akinwumi Adesina, speaking as a guest of the Washington, DC, US-based think tank, called for an increased sense of urgency amid what he described as a once-in-a-century convergence of global challenges for Africa, including a looming food crisis. The continent’s most vulnerable countries have been hit hardest by conflict, climate change and the pandemic, which upended economic and development progress in Africa.
Adesina said the ramifications of Russia’s invasion of Ukraine on Feb. 24 spread far beyond the conflict to other parts of the world, including Africa. Russia and Ukraine supply almost 30% of global wheat exports, and the price has surged nearly 50% globally, reaching levels reminiscent of the 2008 global food crisis.
Adesina said the tripling of fertilizer costs, rising energy prices and rising costs of food baskets, could worsen in Africa in the coming months. He noted that wheat made up 90% of Russia’s $4 billion in exports to Africa in 2020, and of Ukraine’s nearly $3 billion exports to the continent, 48% was wheat and 31% was maize.
Adesina said Africa must rapidly expand its production to meet food security challenges. “The African Development Bank is already active in mitigating the effects of a food crisis through the African Food Crisis Response and Emergency Facility, a dedicated facility being considered by the bank to provide African countries with the resources needed to raise local food production and procure fertilizer,” Adesina said. “My basic principle is that Africa should not be begging. We must solve our own challenges ourselves without depending on others…”
The bank chief spoke about early successes through the African Development Bank’s innovative flagship initiative, the Technologies for African Agricultural Transformation (TAAT) program, which operates across nine food commodities in more than 30 African countries. TAAT has helped to rapidly boost food production at scale on the continent, including the production of wheat, rice and other cereal crops.
“We are putting our money where our mouth is,” Adesina said. “We are producing more and more of our food. Our Africa Emergency Food Production Plan will produce 38 million metric tons of food.” He said TAAT already delivered heat-tolerant wheat varieties to 1.8 million farmers in seven countries, increasing wheat production by over 1.4 million metric tons and a value of $291 million. He added that during the drought in southern Africa in 2018 and 2019, TATT was able to help deploy heat-tolerant maize varieties, which were cultivated by 5.2 million households on 841,000 hectares.
In a similar argument and direction, the World Bank has also expressed worry over sub-Saharan African countries’ high expenditure on food imports that could be produced locally using their vast uncultivated lands and the devastating impact on budgets due to rising external borrowing. According to the bank, it is crucial to increase the effectiveness of current resources to expand and support local production, especially in agriculture and industry sectors during this crucial period of the Russia-Ukraine crisis.
In a press release titled – African Governments Urgently Need to Restore Macro-Economic Stability and Protect the Poor in a Context of Slow Growth, – High Inflation, the global lender said African governments spent 16.5 per cent of their revenues servicing external debt in 2021, up from less than 5 per cent in 2010. Eight out of 38 IDA-eligible countries in the region are in debt distress, and 14 are at high risk of joining them.
In late May 2022, the IMF and World Bank considered 16 low-income African countries at high risk of debt distress, while 7 countries – Chad, Republic of the Congo, Mozambique, São Tomé and Príncipe, Somalia, Sudan and Zimbabwe – were already in debt distress. Bright spots, such as Côte d’Ivoire and Rwanda, are expected to exhibit rapid growth in 2022, the report said. However, 33 African countries need external assistance for food, and acute food insecurity is likely to worsen in 18 of these economies in the next months.
With the above facts, African leaders have to demonstrate a higher level of commitment to tackling post-pandemic challenges and the Russia-Ukraine crisis that has created global economic instability and other related severe consequences. And this requires collaborative action and a much stronger pace of transformation to cater for the needs of the population of over 1.3 billion in Africa.
Máximo Torero, the chief economist of the Food and Agriculture Organization, has observed that African policies have relatively failed to alleviate food security problems. It has emphasised the fragility of over-dependence on a globalised agricultural system. To achieve a more integrated and regionalized agricultural system, coordinated public policy responses are needed to support agribusiness. These responses must ensure small and medium-sized farmers are included.
Action can be taken at a regional level too. And it would help identify issues relating to market access, border and transport-related problems, and possible anticompetitive behaviour. The integration of regional economies is one vehicle for alleviating pervasive food security issues. But regional integration can’t be achieved without the appropriate support for investment in production, infrastructure and capabilities.
An estimate suggests that rich Africans were holding a massive $500 billion in tax havens. Africa’s people are effectively robbed of wealth by an economy that enables a tiny minority of Africans to get rich by allowing wealth to flow out of Africa.
According to our basic research, Africa is not poor, as foreign players are stealing its wealth. But, there is $203 billion leaving the continent. Based on a set of new figures, sub-Saharan Africa is a net creditor to the rest of the world to the tune of more than $41 billion. Then there’s the $30 billion that these corporations repatriate – profits they make in Africa but send back to their home country or elsewhere to enjoy their wealth.
In an opinion article published in September by Foreign Policy in Focus, Imani Countess wrote that every year nearly $90 billion of African resources are lost to the global north in Illicit Financial Flows or IFFs. It isn’t just the Russians, but also U.S.-based corporations and others throughout the global north. Russians are flying an unprecedented huge quantity of gold out of Sudan and precious resources from the extractive industry out of the Central African Republic and Guinea.
According to him, “the financial mechanisms that facilitate illicit financial flows are complex, most often through opaque deals and contracts involving government officials. People in these plundered communities do not have a voice. They face harm to local biodiversity, loss of their livelihoods, and a lack of meaningful benefits, especially in providing sustainable development. The losses are breathtaking and heartbreaking, representing revenue that should be invested in sustainable development in Africa.”
Dr Richard Munang is UNEP’s Africa Regional Climate Change Programme Coordinator, and Ms Zhen Han is a doctoral student at Cornell University, wrote in a joint article that people living in extreme poverty in sub-Saharan Africa increased from 290 million in 1990 to 414 million in 2010. The region currently spends more than $35 billion on food imports annually.
Of the challenges currently facing the continent, climate change has greatly slowed down Africa’s progress towards MDGs, especially those related to eliminating hunger and poverty, improving human health and ensuring environmental sustainability. This is because climate change disproportionately affects the livelihoods of the most vulnerable population by increasing the occurrence of natural disasters, affecting the continuity of ecosystem functioning and the ecosystem services it provides. Climate change also damages the critical natural resources that vulnerable communities depend on.
Establishing food security is important for millions of people facing hunger in Africa and is crucial for sustainable economic development and the long-term prosperity of the continent. Therefore, addressing food security in a changing climate is key for a rising Africa in the 21st century. From the discussions above and various perspectives, African leaders have to focus and redirect both human and financial resources toward increasing local production, the surest approach to attain sustainable food security for the over 1.3 billion population in Africa, and this falls within the framework of the Agenda 2063 of the African Union.
World
Justin Trudeau Resigns as Canadian Prime Minister
By Adedapo Adesanya
The Prime Minister of Canada, Mr Justin Trudeau, has resigned as the country’s ruling Liberal Party leader amid growing discontent in the North American country.
Mr Trudeau’s exit comes amid intensified political headwinds after his finance minister and closest political ally abruptly quit last month.
Mr Trudeau, who said he would remain in office until a new party leader is chosen, has faced growing calls from within his party to step down.
Polls show the Liberals are set to lose this year’s election to the Conservative opposition.
“As you all know, I’m a fighter,” Mr Trudeau said on Monday, but “it has become obvious to me with the internal battles that I cannot be the one to carry the Liberal standard into the next election,” he stated.
His exit comes as Canada faces tariff threats from US President-elect, Mr Donald Trump.
The Republican and his allies have repeatedly taunted Mr Trudeau in recent weeks, with Mr Trump mocking Canada as the “51st state” of the US.
Mr Trudeau also lamented that the Conservative leader, Mr Pierre Poilievre, is not the right vision for Canadians.
“Stopping the fight against climate change doesn’t make sense,” he tells reporters, adding that “attacking journalists” is “not what Canadians need in this moment”.
“We need an ambitious, optimistic view of the future, and Pierre Poilievre is not offering that.”
Mr Trudeau also said he was looking forward to the fight as progressives “stand up” for a vision for a better country “despite the tremendous pressures around the world to think smaller”.
He also clarified that he won’t be calling an election, saying the Canadian parliament has been “seized by obstruction, filibustering and a total lack of productivity” for the past several months.
“It’s time for a reset,” he said, adding that, “It’s time for the temperature to come down, for the people to have a fresh start in parliament, to be able to navigate through these complex times.”
World
African Startups Raise $2.2bn in 2024
By Adedapo Adesanya
Start-ups in Africa raised $2.2 billion in 2024 in funding across equity, debt and grants, lower than the $2.9 billion raised in 2023 by 25 per cent amid a continued slowdown after a peak of $4.6 billion recorded in 2022.
The Big Deal noted that this excludes exits – which is when investors realise a return on their investments, most likely when the startup has become profitable or when there is a change of ownership.
The funding slowdown has occurred for consecutive years due to a wider global funding freeze impacted by macroeconomic developments and geopolitical events as well as a change in market offering trend leading to funding going elsewhere.
There have also been concerns about inflated valuations, business sustainability, and increased due diligence and scrutiny from investors.
For the review year, there wasn’t much funding activity as $800 million (36 per cent) of the total funding was computed in the first six months, while the remaining $1.4 billion came in the second half of 2024.
The $1.4 billion raised in H2 alone (+25 per cent YoY and +80 per cent compared to H1), made it the second-best semester since the beginning of the ‘funding winter’ in mid-2022.
This development was considerably driven by two deals in the fourth quarter of last year, which minted two fresh unicorns in the African startup space, in the form of Nigeria’s Moniepoint and South Africa’s Tyme Group.
This was the first such event since early 2023, as the companies joined the exclusive club that has MNT-Halan, Interswitch, Flutterwave, Chipper, OPay, Andela, and Wave as members.
Some of the raises reported include Yellow Card raising $33 million in October to fund its growth and expansion, JuicyWay raising $3 million pre-seed to facilitate affordable cross-border payments, as well as Seedstars Africa Ventures raising $42 million in its first-ever round to help pioneering African startups in climate, food systems, energy, and payments infrastructure sectors.
The data showed that a total of 188 ventures raised $1 million or more in 2024 (excluding exits), which is just 10 per cent less than in 2023 (169 ventures).
On the exit front, there were 22 exits made public last year (up 10 per cent) versus 20 in 2023.
World
African Union Developing 10-Year Comprehensive Agriculture Programme
By Kestér Kenn Klomegâh
For three working days, 9th –11th January 2025, in the Speke Resort Conference Centre in Uganda’s capital, Kampala, the African Union Commission (AUC) will host the Extraordinary Summit on the Post-Malabo Comprehensive Africa Agriculture Development Programme (CAADP). This Summit is supported by the Government of Uganda.
The event is organized jointly by the African Union Commission, Department of Agriculture Rural Development Blue Economy and Sustainable Environment (DARBE) and African Union Development Agency- New Partnership African Development (AUDA-NEPAD).
Dignitaries will deliver statements on the consideration of the Kampala Declaration, the Comprehensive African Agriculture Development Programme (CAADP) Ten-Year Strategy and Action Plan (2026-2035); the draft Statute of Africa Food Safety Agency; and the report on selection of African Union Centres of Excellence for Research and Training in Fisheries, Aquaculture, Aquatic Biodiversity Conservation and Ecosystems Management.
The Objectives of the Summit:
The convening of the extraordinary session of the Assembly is specifically to:
Endorse the draft Kampala CAADP Declaration. The draft declaration provides a vision for transforming Africa’s Agrifood Systems for the period: 2026-2035.
Endorse Ten-Year CAADP Strategy and Action Plan: 2026-2035. This plan provides details on how to achieve the goals and targets in the draft Kampala CAADP Declaration.
Risk Management and Mitigation
The post-Malabo CAADP strategy will span ten years, from 2626 to 2035. Given the longtime horizon, many risks and uncertainties could affect the strategic positioning of the agri-food systems transformation agenda to deliver on its goals. There are external socioeconomic, environmental, and other shocks that might come up, which will demand that the strategy be agile enough to respond to such unforeseen developments. The strategy will therefore call for institutional adaptation to changes in a complex and rapidly changing context. Major risks and uncertainties will need to be identified and outlined together with their respective mitigation actions.
Key interventions to ensure better risk management include:
- Identify potential risks (e.g., political instability, climate change) and put in place mechanisms for dealing with or mitigating such risks
- Identify health crises, including pandemics or epidemics, early and develop mechanisms for minimizing negative impacts
- Identify and address gender inequalities or biases and restrictive social norms that may limit the access of women and youth to education, resources, and decision making processes thereby preventing them from fully participating in and benefiting from agricultural activities or initiatives
- Invest in durable peace because it is essential for building resilient agri-food systems (from the local to global levels) and affects agricultural production, food security, market access, investment, resilience, and social cohesion. Establishing and maintaining peace is critical for enabling long-lasting investment to unlock the full potential of Africa’s agri-food systems. The Kampala CAADP Declaration will need to emphasize establishing conflict-resolution mechanisms at the community level while strengthening local markets and value chains.
- Promote household insurance and other coping mechanisms that can help mitigate the impact of health shocks on livelihoods. These mechanisms will be key to enhancing the resilience of communities.
- Enhance public health surveillance systems to detect and respond to health threats, including of zoonotic origin. It will also be important to strengthen food safety measures to prevent health shocks related to foodborne diseases.
- Financial resources will be required to achieve the Kampala CAADP declaration’s resilience objectives. Specifically, households need access to credit, savings, and other financial instruments that help them weather economic shocks.
- Food price monitoring: It will be necessary to implement policies that stabilize food markets and prevent price volatility to ensure a steady supply of food and agricultural inputs.
- Capacities development of African governments to formulate resilience-focused policy measures is a critical step and a priority for the CAADP Strategy and Action Plan. Mainstreaming resilience-focused policies will trickle down to operational actions led by various stakeholders towards sustainable agri-food systems.
Background: The Comprehensive Africa Agriculture Development Programme (CAADP) has been crucial in driving agricultural transformation across Africa since its inception in 2003. The program is aimed at increasing food security and nutrition, reducing rural poverty, creating employment, and contributing to economic development while safeguarding the environment. CAADP aims for a 6% annual growth rate in the agricultural sector, with African Union member states allocating at least 10% of their budgets to agriculture.
Building on the Maputo Declaration (2003-2013), the 2014 Malabo CAADP Declaration renewed commitment to CAADP and established ambitious goals for 2025, including eradicating hunger, reducing malnutrition, tripling intra-African trade, and building resilience of livelihoods and production systems. The Malabo Declaration underscored the importance of mutual accountability through agricultural biennial reviews and recognized the essential role of related sectors like infrastructure and rural development. During the Thirty-Seventh Ordinary Session of the African Union Assembly in February 2024, the Heads of State and Government expressed concern that the continent is not on track to meet the Malabo CAADP goals and targets by 2025. This has spurred a call for the development of a post-Malabo CAADP agenda to build resilient agri-food systems.
It is in this context that the An Extraordinary Summit of The African Union Assembly of Heads of States and Governments is scheduled for January 9th to 11th 2025 in Kampala, Uganda, to deliberate on the post-Malabo CAADP agenda to consider the draft Ten-Year CAADP Strategy and Action Plan with its associated draft Kampala Declaration on Advancing Africa’s Inclusive Agrifood Systems Transformation for Sustainable Economic Growth and Shared Prosperity.
Format and Structure of the Summit: The Extraordinary Summit will start with a one-day meeting of the Ministers responsible for Agriculture, Rural Development Water and Environment on the 9th of January 2025, to be followed by Joint Session of the Ministers of Agriculture, Rural Development, Water and Environment together with the Ministers of Foreign Affairs on the 10th of January 2025.
The sessions will feature two presentations the: i) draft CAADP Ten-Year Strategy and Action Plan (2026-2035); ii) draft Kampala CAADP Declaration and both will be done in closed sessions. The Ministerial sessions will be structured to encourage inclusive and interactive conversations and dialogue among the Ministers, as well as between the Ministers and key strategic stakeholders. At the same time, it will enable the Ministers to review the strategic documents presented to them for their consideration and recommendations to the Assembly.
The Assembly of Heads of State and Government will convene on the 11th of January 2025 to endorse the: i) draft Ten-Year CAADP Strategy and Action Plan (2026-2035); ii) draft Kampala CAADP Declaration.
Participants: The Extraordinary Summit on the CAADP Agenda will be attended by Heads of States and Government of the African Union Member State, Ministers of Foreign Affairs, PRCs, Ministers and Experts in-Charge of Agriculture (forestry, fisheries, crops and livestock), Rural Development, Water and Environment, RECs, Youth, Women, Non-State Actors, Media, Academia and Development Partners
African Union: The AU is guided by its vision of “An Integrated, Prosperous and Peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.” The African Union (AU) is a continental body consisting of the 55 member states that make up the countries of the African Continent. To ensure the realisation of its objectives and the attainment of the Pan African Vision of an integrated, prosperous and peaceful Africa, Agenda 2063 was developed as a strategic framework for Africa’s long term socio-economic and integrative transformation. Agenda 2063 calls for greater collaboration and support for African led initiatives to ensure the achievement of the aspirations of African people.
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