Investments in agriculture can unlock untold prosperity in Africa – IFAD

While Africa is expected to experience its slowest growth rate this millennium, Kanayo Nwanze, president of the UN’s International Fund For Agricultural Development (IFAD), will this week bring a strong message of optimism to government and business leaders gathering for the ‘Grow Africa Investment Forum and the World Economic Forum on Africa (WEF) in Kigali.

The WEF 2016 forum opens today through Friday in Kigali, Rwanda.

A statement from the organisation quotes Nwanze as saying, “Investments in agriculture can generate great riches for the continent and lift millions out of poverty and hunger. There are high returns to those countries that take agriculture seriously.”

Since 2009, Africa has been seen as the next great investment frontier yet, according to the International Monetary Fund, economic growth on the continent is now predicted to be slower than the rest of the world for the first time in 16 years, the statement said.

“With many countries in southern and eastern Africa suffering from the worst drought in decades, and with fiscal deficits widening and conflicts increasing, some experts are questioning whether Africa is still on the rise,” the statement noted.

Despite these dire predictions, Nwanze said “Africa is still a continent of unprecedented opportunity, and supporting small-scale farmers and investing in rural areas are some of the best ways for countries to meet their broader development objectives, including poverty reduction.” With the right investments, he said, Africa could double its agricultural productivity in the next five years.

“Half of the world’s uncultivated land which is suited for growing food crops is in Africa,” said Nwanze, noting, “We need to work together to harness the continent’s potential and this means investing in small-scale farmers who are the backbone of African agriculture.”

Africa has 25 percent of the world’s arable land, yet it generates only 10 percent of global agricultural output. With a population growth of 2.7 percent annually, food demand on the continent is expected to double every 30 years. Investments that encourage increased agricultural production would cut Africa’s annual $35 billion food import bill, keeping this money on the continent to be used for broader economic development.