Women Empowered by Fair Trade Manufacturer

There is sometimes a great deal of negativity surrounding the issue of manufacturing in Africa. Some claim the risks of doing business are too high or that the workers are not motivated enough. But one garment manufacturer is out to prove the skeptics wrong. It pays decent wages and gives its mostly female workforce a stake in the business in a bid to drive motivation and make it worthwhile to work hard.

Liberty and Justice (http://libertyandjustice.com), one of Africa’s newest fair-trade garment manufacturers, is drawing attention for the way it is transforming women’s lives. It is also giving opportunities to a group often ignored by employers: women over the age of 30.

Liberty and Justice has factories in Liberia and Ghana, and 90 per cent of its workers are female. The company says it pays 20 per cent higher wages than the industry norm, and gives employees collectively a 49 per cent stake in the enterprise.

The global fair trade market – in which producers are guaranteed a minimum fair price and goods are marketed under the Fairtrade logo – has been growing year on year since it was established in the late 1980s.

The brand and certification process is managed by the Fairtrade Foundation (fairtrade.net) and is considered the most recognized ethical mark in the world.

More than 1 million small-scale producers and workers around the world participate in the Fairtrade system. As of 2013, fair trade has become a 5 billion euro-a-year (US $6.79 billion a year) global movement.

The label can be found on more than 30,000 products, ranging from tea to bananas to sugar and chocolate. It benefits more than 1.35 million farmers and workers around the world.

Liberty and Justice specializes in “high-volume, time-sensitive, duty-free goods for leading American clothing brands, trading companies, and other importers who care about exceptional quality, on-time delivery, social and environmental impact, and geographic diversity.”

The company wants to “transform the apparel supply chain from worker exploitation and environmental degradation to partnership and sustainability.”

Liberty and Justice was established by Chid Liberty (http://libertyandjustice.com/#about), the son of an exiled Liberian diplomat. His life had been a privileged one living amongst Africa’s overseas diplomatic community.

“I thought Africans drove (Mercedes) Benzes and dressed up every day and went to the best schools,” he told Fast Company magazine. “It even messed up my orientation on things like race, because we had all different kinds of people working in my house as a kid – German, Indian, Turkish – and all of them were serving us in some way. So I just kind of grew up thinking that Africans were at the top of the food chain.”

Living in a prosperous bubble in Germany, he had an awakening to the real conditions in Africa when he was in the seventh grade: “When I read only 2 per cent of people have a telephone, I was so confused,” he said. “I started to really understand my place.”

After the death of his father, Liberty started to wonder about life back in Liberia. He had moved on to working in Silicon Valley in California, helping technology startups get funding. Inspired by Liberia’s President Ellen Sirleaf (http://en.wikipedia.org/wiki/Ellen_Johnson_Sirleaf) and the end of the country’s 15-year civil war, he thought: “‘All right, well, I think I can apply that skill to providing economic opportunities for women.’ And decided to come here and try, in an industry that I knew absolutely nothing about.”

In 2010 he and Adam Butlein founded Liberty and Justice fair-trade apparel manufacturer. The company now makes tops and bottoms for brands such as Prana, FEED Projects, Haggar and others in the US.

“We really try to be worker-focused,” Liberty said. “And we actually think that’s what gave us a cutting edge at the end of the day: having really devoted workers. People don’t really believe in these types of factories in Africa, because they believe that African workers aren’t motivated. I think that’s hogwash.”

The company faced a dilemma common to any manufacturing enterprise trying to make goods for the highly competitive global export markets. How to produce the garments fast enough? A consultant had advised them to only hire young women. But Liberty and Justice had hired women in their 30s, 40s and 50s. Rather than firing everyone, the company decided to invest in the workers’ skills and get productivity to where it should be.

“These older women really set the culture of the Liberian Women’s Sewing Project, our first factory,” Liberty said. “They come to work an hour early – we never asked them to do that – they pray and sing together before they get on the machines, they’re very serious about the details of how your uniform should look, and you just wouldn’t have gotten that out of a bunch of 19-year-old girls the first time.”

Liberty and Justice expanded to Ghana in 2012 and launched the Ghanaian Women’s Sewing Project. It had to adapt to how things are done in Ghana, and that was a steep learning curve.

But the company has learned a great deal about how to succeed in Africa as opportunities increase alongside growing wealth and incomes.

“You could easily get squashed in Africa if you don’t know the right people. You’ll just get sent down rabbit holes every day,” Liberty said.

“In Liberia, the World Bank reports that about 40 per cent of children are enrolled in school. Among the women for whom we provide jobs, 98 per cent of their children are in school. So to me it’s very clear: You give a woman the opportunity to work, and her priority will be putting her kids in school.”

And he believes this is just the beginning of something big. As LIberia recovers from civil war, it will lead to an economic and innovation renaissance that will filter out across West Africa.

“I really think that the opportunities for innovation are right here. And once we get the social finance opportunities right, I think you’ll see a little West African impact renaissance happening. There’s still a lot of work to do. I hope Liberty and Justice can be a small part of that.”

By David South, Development Challenges, South-South Solutions

Published: March 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Cheap Farming Kit Hopes to Help More Become Farmers

Food security is key to economic growth and human development. A secure and affordable food supply means people can meet their nutrition needs and direct their resources to improving other aspects of their lives, such as housing, clothing, health services or education.

One solution hopes to boost productivity for small-scale farmers and make agriculture a more attractive income source to the young and poor, by making it possible to grow food year-round. Kenyan social enterprise Amiran Kenya is selling the Amiran Foundation Kit (amirankenya.com), a simple-to-use greenhouse farming kit. As well as helping people grow both food and their agricultural business, Amiran Kenya hopes young people will also buy the kits at a discount and then sell them for a profit to others.

The technology to grow food year-round is already available, but it is generally expensive to set up. This cost is usually prohibitive to the poor and young: two groups who could really benefit from the income. And if young people in Africa learn the basics of farming, in time they could expand and develop into agribusinesses and benefit from the growing food demand on the continent.

Africa, a continent undergoing significant economic change, has yet to fully realize its potential as a producer of agricultural products to feed itself and the world. Africa currently has a labour-intensive but very inefficient agriculture system. While many Africans either make their living in agriculture or engage in subsistence farming for survival, much of Africa’s farming is inefficient and fails to make the most of the continent’s rich resources and potential.

At present, agriculture, farmers and agribusinesses make up almost 50 per cent of Africa’s economic activity, and the continent’s food system is worth an estimated US $313 billion a year (World Bank). A World Bank report, Growing Africa: Unlocking the Potential of Agribusiness (http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf), argues that Africa could have a trillion-dollar agriculture market by 2030.

While large-scale agribusinesses are increasing in Africa, it is still reliant on small-scale farmers to meet the daily food needs of most of the population.

“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, World Bank Vice President for Africa. The continent needs to “boost its high growth rates, create more jobs, significantly reduce poverty, and grow enough cheap, nutritious food to feed its families, export its surplus crops, while safeguarding the continent’s environment.”

Any country that has to import food will be vulnerable to currency fluctuations and the inflation in prices this can cause. A country that has many options for food, and reduces its dependency on imported food resources, will have greater resilience when crisis strikes.

Greenhouses are a great way to expand the growing season, avoiding ups and downs in temperature. But they can be expensive to set up – something the kit hopes to resolve. A typical greenhouse kit will cost a Kenyan an estimated 10 times more than the Amiran Foundation Kit, which retails at Sh 14,500 (US $168).

The package includes a drip-feed kit, a 250 liter water tank, a one liter sprayer, instructional growing guides, fertilizer, agro chemicals and high-quality seeds. Crops that can be grown include cabbage, watermelon, kale and spinach. The drip kit is highly durable and can last eight years, according to its manufacturer.

The kit is being marketed as a “kick starter for the small scale farmers who want to adopt agribusiness” as their method for growing food.

“The farmers will have a chance to start small and grow bit by bit until they are able to afford the modern greenhouses which will set the ball rolling for them to enjoy the benefits of modern agribusiness,” Yariv Kedar, Amiran Kenya’s Deputy Director, explains on the company’s website.

The plan is to draw more people into agriculture by showing they do not need to be prisoners of weather patterns. Larger agribusiness enterprises already have the resources to benefit from technology such as greenhouses and avoid the worst effects of the weather.

By transcending fickle weather patterns, it is possible to reduce the risk of crop failure and the resulting financial damage – one reason people shy away from farming.

Amiran’s philosophy behind the kit is simple: knowledge and know-how matched with high-quality inputs that do not harm the environment. The idea is to introduce people to the concept of agribusiness, no matter how small their land size. Amiran estimates that by investing Sh 14,500 (US $168), a person could make Sh 25,000 (US $290) per season – making back in a season the initial investment cost.

Urban farmers and home gardeners are among those who can benefit, along with small-scale farmers in arid and semi-arid areas of Kenya.

Kedar said the kit’s drip pipes, which deliver water directly to the root of the plant, ensure that “every drop counts” and save between 30 to 60 per cent of water compared to other methods of irrigation.

“Using the Amiran Foundation Kit, farmers are now able to grow all year round and experience high yields while still conserving the scarce resource, water,” he said.

By David South, Development Challenges, South-South Solutions

Published: March 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

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Solar Bottle Bulbs Light Up Dark Homes

Finding ways to generate low-cost or free light has captured the imagination of innovators across the global South. The desire for light is strong: Light gives an immediate boost to income-making opportunities and quality of life when the sun goes down or in dark homes with few windows.

More than 1.7 billion people around the world have no domestic electricity supply, of whom more than 500 million live in sub-Saharan Africa (World Bank). Without a source of electricity, it is difficult to use conventional technology to switch the lights on.

While it is possible to run lights using batteries or diesel generators, these are expensive options that are not possible for many poor people. The more of a slim income that is spent on light, heat or cooking fuel, the less there is left for better-quality food, clothing, transport or education and skills development.

Low-cost light is great, but free light is even better – and one Brazilian solution is offering this.

Brazilian innovator and mechanic Alfredo Moser has taken the common plastic water bottle and created a low-cost lighting solution for dark spaces. Often makeshift homes lack decent lighting or a good design that lets the light in during the day. This means it may be a bright, sunny day outside, but inside the home or workplace, it is very dark and reading or working is difficult.

Moser came upon the idea during regular blackouts in his home city of Uberaba (http://www.uberaba.mg.gov.br/portal/principal) in southern Brazil during 2002. During the blackouts, only factories were able to get electricity, leaving the rest of the population in the dark.

The “Moser Light” involves taking plastic bottles, which are usually just thrown away or recycled, and filling them with water and bleach to draw on a basic physical phenomenon: the refraction of sunlight when it passes through a water-based medium.

It is a simple idea: Holes are drilled in the ceiling of a room and the bottles placed in the holes. The liquid-filled bottle amplifies the existing sunlight (or even moonlight) and projects it into the dark room. This turns the plastic bottle into a very bright lightbulb that does not require any electricity.

Moser uses a solution of two capfuls of bleach added to the water to prevent anything growing in the water such as algae because of the exposure to sunlight.

“The cleaner the bottle, the better,” he said.

Polyester resin is used to seal the hole around the plastic bottle and make it watertight from rain.

Moser claims his bottle innovation can produce between 40 and 60 watts of light.

Moser uses recycled plastic bottles, so the carbon footprint is minimal compared to the manufacture of one incandescent bulb, which takes 0.45 kilograms of CO2 (UN). Running a 50 Watt incandescent light bulb for 14 hours a day for a year, around the same light as produced by the bottle bulb, produces a carbon footprint of nearly 200 kilograms of CO2.

“There was one man who installed the lights and within a month he had saved enough to pay for the essential things for his child, who was about to be born. Can you imagine?” Moser told the BBC.

The plan is to try and get as many as a million homes fitted with the lighting system by the end of 2013.

In many poor areas, it is common to live in makeshift or rudimentary dwellings. These are often built to crude designs and, in order to keep costs down and boost security, will have few or no windows. These dwellings will consequently be very dark inside, even on the brightest days. This leaves people having to turn to a source of artificial light if they want to do something indoors like read or work. And this costs money. Be it electricity from a mains, or battery-powered lamps or gas-powered lanterns, the cost will eat into a person’s tight income. This is where Moser’s simple solution saves the day and saves pennies: it is free light once the bottle lamp system is installed.

Placing the bottle lights in the ceiling transforms the ceiling into something akin to the night sky, with many points of light shining down into the room like stars. It also means the occupant of the room does not just have to strain to see with the use of a single light but now has many lights illuminating the room from all angles.

“It’s a divine light,” Moser told the BBC World Service. “God gave the sun to everyone, and light is for everyone. Whoever wants it saves money. You can’t get an electric shock from it, and it doesn’t cost a penny.”

It has not been a road to riches for Moser. He has made some money installing the system in a local supermarket and nearby homes, and he has inspired a charity to install the lighting system and to train people to do the installation and make an income from it.

The MyShelter Foundation in the Philippines was inspired by Moser’s invention and has installed the system in some 140,000 homes there, the BBC reported.

“We want him to know that there are a great number of people who admire what he is doing,” MyShelter Executive Director Illac Angelo Diaz said of Moser.

Using bottle bulbs instead of electricity or generators means families can save US $6 per month, according to Diaz (CNN). The Philippines is reported to have the most expensive electricity in Asia and slum homes usually do not have electricity.

It is estimated 15 other countries also have homes using the Moser system. The MyShelter Foundation believes 1 million homes worldwide have used the Moser system as of 2013.

Liter of Light (http://aliteroflight.org), run by the MyShelter Foundation, offers instructions on how to install the lighting system on its website.

By David South, Development Challenges, South-South Solutions

Published: September 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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African Infrastructure Dreams Back on Agenda

Africa’s patchy infrastructure is not keeping pace with the continent’s economic growth.

Satellite photos of Africa at night show a place where light is concentrated overwhelmingly in the South – primarily South Africa – and in the North, with a sprinkling of lights on the west and east coasts (http://geology.com/articles/satellite-photo-earth-at-night.shtml).

This is just one visually arresting way to view the much larger problem of the continent lacking 21st-century infrastructure – from roads to airports to sewage and water services to harbors and rail connections. All are in desperate need of an upgrade.

The World Bank says only one in four people has access to electricity in sub-Saharan Africa. According to the International Energy Agency (IEA), the region will require more than US $300 billion in investment to achieve universal electricity access by 2030.

This lack of modern infrastructure is clashing with Africa’s impressive economic growth in recent years. The continent will be home to seven of the 10 fastest growing economies in the world by 2015, according to the IMF. Yet still too much of this is a reflection of a booming resource economy, which sounds impressive in numbers, but still leaves much of the continent’s population living in a day-to-day world of underdevelopment and poverty.

Africa desperately needs further investment in infrastructure. The good news is that a mix of positive developments is coming together to breathe life into efforts to upgrade the continent.

One is a new campaign to mobilize Africa’s wealthiest to stump up the necessary funds to conduct feasibility studies to lay the groundwork for a big boost to infrastructure spending in the coming years. Another is a flurry of new pledges from the United States to spend more in Africa to increase access to energy – a necessary precondition to improvements to living standards. China, too, is to continue to grow its already substantial investments in Africa.

For innovators, better infrastructure across Africa will make it easier to export products, connect with markets and customers and gain access to new technologies and products available to others around the world.

The Made in Africa Foundation (madeinafricafoundation.co.uk) hopes to turn to Africa’s wealthy global community to help with funding the feasibility studies required to unleash a new wave of infrastructure spending and building across the continent.

Africa takes up 30 million square kilometers (UNEP), is home to approximately 15 per cent of the world’s population and has 60 per cent of the world’s potential agricultural land. Yet, just 34 per cent of Africa can be reached by road and only 30 per cent has access to electricity. One estimate has placed the cost of meeting Africa’s power and transport needs at US $28 trillion by 2050.

That is a vast amount of money, and nobody will commit those sums unless they know that work has gone into planning for this infrastructure and that people are thinking long-term. This is where the Made in Africa Foundation wants to make a difference: it is hoping to get Africa’s wealthy to contribute US $400 million to fund feasibility studies which in turn will kick-off a US $68 billion first phase in investment into roads, railways, ports and energy.

“In 2009, there was (US) $150bn (billion) available to spend, but no bankable infrastructure projects in Africa,” that these funds could be directed towards, said the Foundation’s George Brennan. “These figures should make us angry – the problem is not the availability of funding but the fact that projects are not in a condition to be funded.”

Just as a global diaspora of Indians and Chinese have been instrumental in economic growth and development in India and China in the past two decades, so it is hoped the same formula can be applied to the equally substantial, successful and wealthy African diaspora.

“African Americans spend (US) $1 trillion every year in their economy, but what do they spend on Africa? About 0.01 percent,” said Chris Cleverly, Director of the Made in Africa Foundation. “They have the wherewithal to make profound differences – personally, and by lobbying their pension funds, investment advisers and government to invest in Africa on the basis that it provides good returns.

“It was China and India’s diasporas that developed them – it is the same with Africa’s now.”

Ozwald Boateng (http://ozwaldboateng.co.uk), the dynamic Ghanaian-descended London tailor who built his reputation on a quirky and modern take on traditional British bespoke suits, took the lead along with the Ugandan Prince Hassan Kimbugwe (http://www.cdrex.com/prince-hassan-kimbugwe/1251509.html) and former British barrister Chris Cleverly.

Boateng’s reputation and fame rose along side the buzzing British capital throughout the 2000s. But now he is reaching back to Africa to lead a campaign to substantially raise the level of investment in the continent’s creaking, antiquated or non-existent infrastructure.

He is trying to rally Africa’s wealthiest business leaders to contribute to creating a 21st-century African infrastructure of roads, railways, ports and power supplies. Made in Africa is tackling the fact many big global investors are willing to invest in Africa but find it difficult to do so. Much has to be done before an investor can come along and start, for example, building a new road network or airport. Local governments need to do the initial site survey and environmental impact studies and develop a larger vision for where they would like their country to go and how its cities are to develop.

The campaign got underway with a star-studded gala event earlier this year in Marrakech, Morocco, at the African Banker Awards (http://www.ic-events.net/awards/african_banker_awards_2013/). It also comes with a film, Our Future, Made in Africa, to help explain the campaign and the company.

Some of the people who attended included Nigerian philanthropist Tony Elumelu, Angola’s richest woman Isabel dos Santos and Sudanese telecoms mogul Mo Ibrahim.

“This is the start of fully understanding what Africa can do for itself,” said Boateng. “The Chinese managed to build a railway across China; the Japanese have the bullet train – we need to get past thinking about why it’s difficult to create the roads and railways that Africa needs and just get on with it.”

The Foundation is being supported by the African Development Bank (http://www.afdb.org/en/), a long-time supporter of African infrastructure investment through loans and technical assistance.

An additional boost to African development comes from a recent U.S. government pledge to spend US $7 billion over the next five years in Africa to improve access to energy. Energy is the needed fuel for any significant improvements to human development over the long-term.

U.S. President Barack Obama announced “Power Africa” (http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa) while he was in Cape Town, South Africa on his recent African tour. At the heart of Power Africa is the pledge to double access to power in Africa. According to medical journal The Lancet, 3.5 million Africans die every year due to indoor air pollution – a figure larger than those who die every year from malaria and HIV/AIDS combined. The pollution results from the fumes caused by burning fuel for cooking, warmth and light.

President Obama promised the funding to help governments in Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. The funds will be used to boost access to electricity for 20 million households. Funds will also be used to help Angola and Mozambique modernize their energy export sectors.

Power Africa will act as a go-between to encourage links and deals between American energy companies and African partners.

On top of this, Power Africa is being supplemented by an additional US $10 billion in private sector contributions, including a commitment from the General Electric Company to bring 5,000 megawatts of affordable energy to Tanzania and Ghana.

In total, the US estimates it will take US $300 billion in additional funds to bring full power to sub-Saharan Africa.

For the past decade, the biggest change in Africa’s infrastructure story has come from the growing role played by China. China has become Africa’s largest single trading partner, with bilateral trade reaching US $166 billion in 2011 – a jump of 33 per cent from 2010. The total volume was valued at $198.5 billion in 2012 and is expected to surpass $380 billion by 2015.

And much, much more has been promised to come: China’s President Xi Jinping (http://en.wikipedia.org/wiki/Xi_Jinping) renewed a pledge to offer US $20 billion in loans to Africa in March 2013 (Reuters). Much of this is going to electricity-generation projects.

By David South, Development Challenges, South-South Solutions

Published: July 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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US $1 Trillion Opportunity for Africa’s Agribusinesses Says Report

As the world’s population continues to grow – surpassing 9 billion people by 2050, the United Nations estimates – and more and more people move to urban areas, producing enough food to feed this population will be one of the biggest economic challenges and opportunities in the global South.

Africa, a continent undergoing significant economic change, has yet to fully realize its potential as a producer of agricultural products to feed itself and the world. Africa currently has a labour-intensive but very inefficient agriculture system. While many Africans either make their living in agriculture or engage in subsistence farming for survival, much of the continent’s farming is inefficient and fails to make the most of the continent’s rich resources and potential.

A new World Bank report, Growing Africa: Unlocking the Potential of Agribusiness (http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf), argues that Africa could have a trillion-dollar agriculture market by 2030.

What will need to change to make this happen? African farms will need greater access to capital, as well as more investment in infrastructure and better irrigation. All of these elements will need to dramatically improve if Africa is going to compete effectively in global markets.

The report urges greater cooperation between governments and agribusinesses, farmers and consumers and for all parties to recognize that the continent is being rapidly urbanized, changing the way food is grown, sourced and distributed.

It says Africa’s farmers and agribusinesses require more capital, steady supplies of electricity, better technology and irrigated land. All these resources then need to be applied to the growing of high-value, nutritious foods.

At present, agriculture, farmers and agribusinesses make up almost 50 per cent of Africa’s economic activity, and the continent’s food system is worth an estimated US $313 billion a year (World Bank). But the report believes this could triple if governments and business leaders adopted radically different policies.

“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, the World Bank Vice President for Africa. “We cannot overstate the importance of agriculture to Africa’s determination to maintain and boost its high growth rates, create more jobs, significantly reduce poverty, and grow enough cheap, nutritious food to feed its families, export its surplus crops, while safeguarding the continent’s environment.”

The report addresses the problems African agriculture is currently experiencing: slow yield growth for major food crops, slowing research spending, degraded land, water scarcity, and climate change. It looks at solutions to allow Africa to tackle these problems and seize the opportunity to significantly increase its food and agricultural exports.  Africa can more than meet its own needs and meet the world’s needs too, the report argues.

But what can be done? At present, 50 per cent of the world’s uncultivated land suitable for growing food resides in Africa. This works out to 450 million hectares of land that is neither forested, protected nor densely populated – all could be available for growing food.

The report also found Africa is using just 2 per cent of its renewable water resources while the rest of the world averages 5 per cent. African harvests currently do not yield anything close to what is possible. Another weakness is waste from post-harvest losses, averaging 15 to 20 per cent for cereals, and even more for perishable foods, because of poor storage and farm infrastructure.

Areas the report recommends farmers and agribusinesses should focus on include fast-growing markets for rice, maize, soybeans, sugar, palm oil, biofuel and feedstock. In sub-Saharan Africa, the focus should be on rice, feed grains, poultry, dairy, vegetable oils, horticulture and processed foods for the domestic market. And there are also good examples to follow by studying the ways Latin America and Southeast Asia used world markets to boost income and profits.

Agribusiness enterprises looking to purchase more land to expand the number of hectares under cultivation are urged to act ethically and not to threaten existing people’s livelihoods or violate local users’ rights. This includes consulting with locals and paying fair market price for land bought.

Rice is one crop that needs attention. Significant quantities of rice are imported and consumed in Africa. Half the rice eaten is imported, costing around US $3.5 billion a year (World Bank). Big importers include Ghana and Senegal – both countries singled out in the report for needing to improve their domestic rice production and quality.

Another food staple needing attention is maize (corn). A daily food staple for many Africans, it takes up 14 per cent of crop lands on the continent. While most Zambians get half their calories from maize, Zambia is currently unable to export maize at a cost comparable to market leader Thailand – Zambian maize costs one-third more. Zambia was singled out as needing to raise yields, reduce costs, and remove disincentives for the private sector in markets and trade.

“Improving Africa’s agriculture and agribusiness sectors means higher incomes and more jobs. It also allows Africa to compete globally. Today, Brazil, Indonesia and Thailand each export more food products than all of sub-Saharan Africa combined.  This must change,” said Jamal Saghir, the World Bank’s Director for Sustainable Development in the Africa Region.

How to make the most of this opportunity?

One innovative idea coming out of Africa comes from the mega-brewer SABMiller (sabmiller.com). As a sign of confidence in the continent’s growing economies, the brewer has pledged to slash its beer prices and use more African-grown grains – a boost to local farmers – and to start a campaign of opening new breweries for the next three years. Countries targeted include Ghana, Nigeria, Mozambique and Zambia.

“African farmers and businesses must be empowered through good policies, increased public and private investments and strong public-private partnerships,” according to Gaiv Tata, World Bank director for Financial and Private Sector Development in Africa.  “A strong agribusiness sector is vital for Africa’s economic future.”

By David South, Development Challenges, South-South Solutions

Published: May 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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