African govts tasked to design policies that guide SMEs investments

AGRIBUSINESS

Governments in Africa have been asked to design appropriate policies and regulatory frameworks that will guide Small and Medium Enterprises (SMES) interested in the Agriculture value chain.

This is because governments have the responsibility to protect SMEs and consumers from substandard products such as   farm inputs, seeds, fertilizers and pest and disease control products or food products going to the market.

With the right policies that protect interest of SME's in Agriculture, there will be an increase in production, farmers will access quality agro inputs, good storage facilities, access designated markets, among others, and this will increase the ability of SMEs to compete for regional and global markets.

Dr.Agnes Kalibata, the president of the Alliance for a Green Revolution in Africa AGRA made the call on Tuesday, during the African Green Revolution Forum (AGRF) taking place in Accra Ghana where the 2019 Africa Agriculture Sector Status report that was conducted by AGRA and its partners was launched.

The AGRF is the world's forum for African agriculture, that brings together stakeholders in the sector to discuss and commit to programmes, investments, and policies aimed at achieving inclusive and sustainable agricultural transformation across the continent.

This year's AGRF is running under the theme "Grow Digital: Leveraging Digital Transformation to Drive Sustainable Food Systems in Africa.

"The past ten years have shown that rural agri-food SMEs have soared when the right infrastructure and policies are in place," Kalibata said. "We can propel their flight. The majority of our family farmers; mostly small-scale and women entrepreneurs have everything to gain," Kalibata said.

According to the report, 64% of food consumed in Africa is handled by millions of small- and medium-sized enterprises (SMEs), creating vast opportunities for family and women farmers.

The report adds that these SMEs, often women-led, include food processors, wholesalers, and retailers, provide a range of services, from transport and logistics to the sale of inputs such as fertilizer and seed to farmers. 

It is from these farmers that value chains managed by SME businesses purchase commodities directly from smallholder farmers and then process, package, transport and sell food products to the urban and rural consumer. 

Also, those SMEs play a bigger role in, growing markets for inputs like fertilizer and seed, as well as farm machines and pesticides.

"All this represents a profound turnaround from mere decades ago, " said Dr. Thomas Reardon of Michigan State University, a lead author of the report.

 He adds that there has been a ‘Quiet Revolution' in agri-food private sector value chains linking small farmers to urban markets and growing towns in Africa, however, this can only be maintained with the right infrastructure," he added.