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The Alliance for a Green Revolution in Africa (AGRA) has unveiled its highly anticipated 2024 Africa Agriculture Status Report, shedding light on the critical role of micro, small, and medium-sized enterprises (MSMEs) in transforming Africa’s food systems. Titled “Harnessing the Private Sector for Food Systems Transformation in Africa,” the report provides a comprehensive analysis of how MSMEs are driving agricultural and economic growth across the continent.

According to Dr. Agnes Kalibata, President of AGRA, the 2024 report underscores the transformative power of MSMEs in Africa’s agrifood landscape. “By leveraging the private sector, we can enact meaningful food systems transformation and ensure sustainable growth,” she said,  emphasizing that the report delivers actionable insights to support MSMEs in their quest to enhance food security and foster economic development.

The report highlights a pivotal shift in agribusiness investments, where medium and large-scale enterprises are increasingly collaborating with smallholder farmers. This shift has been fueled by the recognition of smallholders’ crucial role in improving agricultural productivity and ensuring food security. Investments in rural infrastructure, such as better roads, storage facilities, and improved access to markets, are key components driving these collaborations.

Programs that offer smallholder farmers better seeds, modern farming techniques, and financial services are helping to boost their yields and incomes, contributing to the overall growth of rural livelihoods. The report also features case studies that demonstrate how strategic investments in cash crops, infrastructure, and digital technologies are spurring agricultural diversification and driving export growth.

The report highlights success stories across Africa where strategic investments are revitalizing agriculture and transforming food systems. 

Malawi has made significant investments in groundnut production by introducing new seed varieties and enhancing processing capabilities, which have expanded the country’s export markets.

Nigeria has revitalized its cocoa sector through modern farming techniques and processing infrastructure, boosting both local production and exports.

In Ghana, mobile platforms like AgroCenta are revolutionizing agriculture by providing farmers with access to credit, market information, and better distribution of inputs.

Kenya is becoming a major exporter of macadamia nuts due to investments in digital platforms for farm management and market access, despite regulatory and market challenges.

Digital technology is a game-changer for African agriculture, streamlining value chains and increasing efficiency. Platforms like M-Kulima and M-Pesa in East Africa are improving access to agricultural inputs and credit, while services like Hello Tractor are increasing smallholder farmers’ access to mechanization, boosting productivity and cutting costs.

The report urges governments, development partners, and the private sector to collaborate in tackling the challenges facing MSMEs, such as limited infrastructure, inadequate financing, and regulatory barriers. To overcome these hurdles, AGRA recommends:Targeted investments in infrastructure, such as roads and energy systems,improved access to financial services for MSMEs and streamlined regulatory processes to ease business operations for MSMEs.

It also highlights the importance of agro-industrial parks and clusters in addressing infrastructure deficits and supporting agrifood systems. These parks can significantly improve efficiency, foster job creation, and bolster food security.

MSMEs account for 85% of Africa’s agrifood value chains and are responsible for up to 60% of employment in the sector. They play a crucial role in making nutritious food more accessible, improving food security, and driving economic development by enabling the adoption of new technologies.

As Africa continues to urbanize, the report highlights that MSMEs are well-positioned to meet the rising demand for diverse food products in urban markets, which now account for over 50% of food purchases in many African nations

AGRA’s 2024 Africa Agriculture Status Report emphasizes the growing importance of MSMEs in transforming Africa’s food systems. By fostering partnerships between governments and the private sector, Africa can unlock new opportunities for growth, sustainability, and resilience in its agrifood systems.