The Imperative of Agricultural Integration for African Prosperity and Food Security
The Nigeria-South Africa Chamber of Commerce (NSACC) has issued a clarion call for deeper economic integration among African nations, emphasizing its critical role in achieving food security and shared prosperity across the continent. This call to action comes amid growing concerns about food shortages and the need to enhance intra-African trade, particularly in the agricultural sector. During the NSACC’s March Breakfast Meeting in Lagos, stakeholders in the agricultural sector underscored the urgent need for a robust agribusiness framework to address these challenges. This framework, they argue, must encompass policy reforms, investment in infrastructure, and the development of efficient value chains to unlock the continent’s vast agricultural potential.
A central theme of the meeting was the recognition of agriculture as the backbone of Africa’s economy, a sector providing over half of the continent’s jobs. Despite its significance, agricultural development in Africa has been hampered by a variety of factors, including inadequate funding, inefficient value chains, and a lack of supportive policies. Ade Adefeko, Director of Corporate and Regulatory Affairs at Olam, a leading global agribusiness, highlighted the failure of many African governments to meet the Malabo Declaration target of allocating at least 10% of their national budgets to agriculture. He pointed out that Nigeria, for example, has historically allocated only around 3% of its budget to the sector, a figure far below the agreed target. Adefeko emphasized the importance of governments creating enabling environments for agribusinesses to thrive, arguing that while governments should not directly engage in business, they must provide the necessary policies and infrastructure to support private sector investment.
The discussions also focused on the challenges facing Nigeria’s agricultural sector. Despite being a leading producer of several key crops, including cocoa, cashew, sesame, cotton, yams, and cassava, Nigeria struggles to maximize the economic benefits of its agricultural output due to bottlenecks in storage and distribution. These inefficiencies prevent farmers from accessing markets, leading to post-harvest losses and reduced incomes. Adefeko pointed to Olam’s investments in agricultural ventures across various African countries, including Ghana, Mozambique, Côte d’Ivoire, and South Africa, as examples of how private sector investment can contribute to job creation and strengthen local economies. He emphasized the need for similar investments in Nigeria to unlock its agricultural potential and improve the livelihoods of farmers.
Dr. Ije Jidenma, Chairman of the NSACC, emphasized the fundamental link between food security and economic growth, posing the crucial question: "How can we pursue economic growth if we cannot meet our basic food needs?" Jidenma called for a strategic shift away from dependence on oil revenues and towards increased investment in agriculture as a pathway to economic stability and diversification. She commended Olam’s growth from a small cashew trading firm in 1989 to a global agribusiness leader, showcasing the potential for African businesses to thrive in the agricultural sector. Jidenma’s remarks highlighted the need for a concerted effort to prioritize agriculture and food security as key drivers of economic development on the continent.
The meeting also featured a panel discussion with industry leaders, including Folusho Olaniyan, Group Independent Director of Odu’a Investment Company; Eze Mwakama, Head of Agribusiness at Union Bank; and Olufunto Olasemo, Chief Operating Officer of AFEX Commodity Exchange. The panel delved into critical issues related to strengthening agricultural value chains, attracting investments, and leveraging the African Continental Free Trade Area (AfCFTA) for trade expansion. The AfCFTA, a landmark agreement aimed at creating a single continental market for goods and services, presents significant opportunities for African countries to boost intra-African trade and enhance food security. The panelists stressed the importance of leveraging the AfCFTA to facilitate the flow of agricultural products across borders and create a more integrated African market.
Dr. Jidenma reiterated the NSACC’s commitment to fostering stronger economic ties between Nigeria and South Africa, emphasizing the principle of mutual benefit: "Together, we win." She urged African nations to prioritize collaboration in achieving food security and sustained economic growth, highlighting the importance of shared responsibility and collective action. The meeting concluded with a strong call for increased investment in agriculture, the development of efficient value chains, and the implementation of supportive policies to unlock Africa’s agricultural potential and ensure food security for all its citizens. The NSACC’s message resonated powerfully: a food-secure Africa is a prosperous Africa, and this can only be achieved through deeper economic integration and a collective commitment to agricultural development.
