Agriculture vital in Africa's development

As African smallholders start to produce food for the global market, there is a need for greater investment to meet the needs of this shift.

Countries under the African Union have been advised to focus on developing appropriate financing mechanisms that will support industrialization in agriculture for the transformation of the continent.

The call was made by the Program manager of Natural Resources Governance at the New partnership for Africa's Development (NEPAD), Dr. Hamady Diop, at the end of the 12th Comprehensive Africa Agriculture Development Partnership Platform (CAADP PP) in Accra on Thursday.

"If we have to successfully move from Maputo to Malabo, we need to focus on developing appropriate financing mechanisms, to support industrialized-led agriculture for the transformation of the continent," Hamady Diop said.

In July 2003, at the African Union (AU) summit in Maputo, Mozambique, African leaders made a commitment to reverse the underinvestment in agriculture sector back for so long. They promised to their people to allocate at least 10% of national budgets to agriculture so as to achieve at least 6% annual agricultural growth.

While in Malabo, leaders agreed to provide leadership for accelerated agricultural growth and transformation.

The 12th CAADP PP sought to identify the capacity needs and the necessary partnerships at all levels to finance agricultural transformation and enable the implementation of the Malabo Declaration, for attaining sustainable agriculture growth.

In the meeting, it was agreed that addressing food security and agricultural development requires significant levels of public investment to address the public good dimensions but also requires significant private sector investments and participation.

According to Diop, as African smallholders start to produce food for the global market, there is a need for greater investment to meet the needs of this shift.

"Africa can only make things happen if the continent collectively innovates and creates fit for purpose instruments for finance and risk management that speak to its unique requirements," he added.

The meeting brought together close to 400 participants, including farmer leaders development partners among others.