Download the full document on Accelerated business-led growth and collective action to reach the millenium development goals.
Seeing that agriculture accounts around 75 per cent of employment, 40 per cent of exports and 35 per cent of GDP across the continent, accelerating growth in agriculture will not only make the achievement of the MDGs possible but it is also vital for sustained growth and industrial diversification into Africa.
The private sector has an important role to play in stimulating and strengthening the agricultural sector in Africa and overcoming a number of obstacles by contributing in four key areas:
1. By improving the agricultural infrastructure and enabling smoother cross-border trade by improving customs regimes. Developing and implementing basic infrastructure is the key for Africa reaching the MDGs. Apart from a massive increased investment of $40 billion per annum over the next 10 years in regional, national, urban and rural infrastructure, an establishment of a sound strategic framework is necessary to define, implement and monitor infrastructure development across the region. Partnerships that promote economic integration and support the development of intra-Africa trade is a key requirement. A cross-border approach has the potential for huge economic benefits. Creating an infrastructure corridor where there are linked cross-border rail, road, air and sea networks, a platform is created for increased cross-border trade and developing economic hubs that encourage industrial development around this growing and improving infrastructure network.
2. The contribution of knowledge and know-how by introducing core business disciplines to make markets work more effectively will enable the agricultural sector to operate more efficiently.
3. Greater levels of innovation are necessary in this sector and will make it possible for farmers to be more competitive. The Africa Enterprise Challenge Fund promotes this.
4. In order to create an enabling investment climate the overly complex regulatory environment and insecurity of land tenure in many parts of the continent need to be facilitated. The Investment Climate Facility is doing an important work here.
Without public-private partnerships the chances of revitalizing Africa’s agricultural base and meeting Africa’s infrastructure goals seem unrealistic. Everyone has a role to play.