Small and medium enterprises lynchpin of African agriculture – African Development Bank
Africa’s emerging agripreneurs call for increased SME-to-SME cooperation at Bank-organized food systems webinar attached to the African Green Revolution Forum.
ABIDJAN, Ivory Coast, September 9, 2020/ — A panel of some of Africa’s most promising small and medium-enterprise (SME) agripreneurs gathered online to call for more selective investment, accelerated business acquisitions and increased cooperation to help Africa feed itself and the world.
The African Development Bank (AfDB) organized the virtual session, Integrating African Food Systems through the Lens of SME Champions, as a side-event ahead of Africa’s largest agriculture conference – the African Green Revolution Forum (AGRF) – which is being held online for the first time, from 8-11 September. Webinar moderator Atsuko Toda, Bank Director for agricultural finance and rural development, said the panel members, were selected because they are using innovative solutions, tailored their business models, have a proven track record, and shown to have an impact on food systems.
“We see the importance of the roles that you play, the risks you take and the Bank wants to give you more visibility so that policy makers can understand the challenges of what you are facing and help SME Champions to grow,” Toda said.
The group of African “SME Champions” – heads of SMEs across the continent’s food system production, processing, logistics, agricultural digitization and cold storage chain solutions sub-sectors, set the scene for webinar attendees, by describing the challenges and opportunities they face in trying to meet Africa’s food systems demands. Some said policy, programs and financing in Africa are geared toward larger organizations and businesses – and that there is still too heavy a focus on agricultural imports to Africa.
“Especially if you are an SME it is really challenging to penetrate the market and do something significant,” said Nicholas Alexandre, Global Head of Commercial at LORI, a Kenya-based tech-driven logistics company.
Others shared their experiences in overcoming challenges. For example, Nnaemeka Ikegwuonu, head of Nigeria-based ColdHubs, says his solar power, cold storage facility company helps farmers’ produce stay fresher, longer, reducing the need to rush product to market at less competitive prices. ColdHubs says it invested in the storage infrastructure, so that farmers could benefit from the service at a reasonable price.
“We are taking the risk out of ownership of huge cold rooms from smallholder farmers because we design, operate and maintain these cold rooms. We offer a pay-as-you-use service model,” said Ikegwounu.
Kenya’s SunCulture company, which provides farmers with solar-powered irrigation services, also uses a similar “pay-as-you-grow” service fee program. SunCulture CEO and SME Champion Samir Ibrahim told webinar attendees that there has been sufficient development and investment support to African entrepreneurs to know what works – and that it is time to step up scaling up efforts. “We know that there are proven solutions, the focus now should be to target finance and partnerships to scale those…We need donors and multilaterals to start cutting much bigger checks for much fewer interventions…so we can see the needle moving,” Ibrahim said.
Other champions said building up Africa’s agriculture sector lies in building up its agriculture value chains. SME Champion Patricia Zoundi, who started up Canaan Land, a Cote d’Ivoire-based company that trains women in rural areas in order to develop sustainable and inclusive agriculture said, “We have north-north cooperation. We have south-south cooperation. Now it is time to have SME-to-SME cooperation…On this panel, I see three SMEs with which I can collaborate in marketing…[they offer] something I need in my value chain.”
Toda closed the session by reassuring SME Champions that their insights shared would be transformed into key messages intended to reimagine policy, resulting in the accelerated transformation of Africa’s food systems. “There is so much for us to share, proven solutions for us to amplify, to bring forward to scale and consolidate through partnerships and finance.”
To learn more about the Bank’s SME Champions, watch our video:
To learn more about Africa’s food systems, click here:
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
Alphonso Van Marsh
Communication and External Relations Department African Development Bank
With effect from September 1, 2020, Dr. Aggrey Agumya assumes the role of Director for Research and Innovation-designate, (DRI-designate) for the Forum for Agricultural Research in Africa, FARA. He takes over from Dr. Irene Annor-Frempong who has served in this capacity since 2015.
Prior to this appointment, Dr. Agumya was the Director in charge of Stakeholder Engagement and Communications, a capacity in which he had worked very closely with the Director of Research and Innovation. His assumption of this role therefore ensures continuity in driving the FARA mandate.
We use this opportunity to thank the outgoing DRI for her selfless dedication to FARA’s cause. FARA has benefited immensely from Dr. Annor-Frempong’s unrivalled contribution to its work. Her rich legacy of foundational accomplishments will live on and become the nuclei for transformational changes in Africa’s agriculture long after she has settled into retirement. We wish her the best for the years ahead.
We also look forward to a continuous fruitful working relationship with the in-coming (per interim) DRI as we request all staff and stakeholders to give him the maximum support.
The COVID-19 pandemic has affected operations of organizations and changed the dynamics of running businesses in this era. Several institutions are plagued with challenges that affect their survival. Factories and businesses that contribute to the GDP of economies had to shut down for a while creating financial gaps. The global nature of the pandemic poses huge challenges to all organizations. The work of ARD organizations and agencies that are development partner funded are also affected as funding for such organizations is likely to either delay or be suspended. Organizations are now forced to alter their modus operandi and workforce to enhance productivity. Some have had to shed off staff, opt for a combination of on-site and virtual work etc.; bringing in their wake adverse physical and socio-psychological impacts.
Challenges for Human Resources Management
Human resource management in the era of COVID-19 has been challenging. Several organizations have taken rapid steps to adjust to the ‘new norm’. The FARA secretariat, like many organizations, has to set physical boundaries. Organizations started with working from home to prevent cross contamination. This was a new experience for many organizations which have to deal with staff anxiety, issues of productivity and unplanned expenditure. Because profitability is the bedrock of survival for organizations, many graduated from working from home to working in ‘Split Shift’ mode as management observed the spread of COVID-19 in various countries. With the split shift mode, some of the challenges were the inability to meet all team members at the same time. This strategy was combined with virtual interactions to interface with team members in different shifts.
For most organizations, unstable internet connectivity and the cost of maintaining high bandwidth made it a bit more challenging. As organizations observe the number of affected persons over a period and the recoveries, it became necessary to move back to in-person work to catch up with pending tasks and those requiring physical contacts. Interacting virtually could not be dissociated from all these strategies as there is high probability of spreading the pandemic. In all these HR has the responsibility of working with heads of departments to manage the shift system, ensure delivery and plan leave in a way that does not affect targets. HR has to also deal with staff complaint related to access to information, access to records, systems, internet and their wellbeing.
Staff who have been unable to physically interact with their families (especially so for expatriate staff) have become more anxious because although they might be communicating via phone and other social media networks, the physical touch which is normally present at this time when a number of people take their leave is lost. Thus, psychologically it impacts on focusing wholly on work. In a staff survey conducted by FARA, it became evident that remote working is closely tied to extra family burdens, which includes managing the home environment and children, home-office space to work comfortably and the ambiance to focus. It is not possible to detach work from private and family life particularly with schools and child-care services closed. Parents are expected to play the role of teachers at home and balance this with delivery on their core official work.
Those with spaces enough to accommodate family needs are challenged with improvising to perform their work as part of the space must be reserved for kids to undertake their schoolwork and participate in online tuition with their classmates. Parents are concerned about giving their kids the social contact as part of their developmental needs.
The other issue to deal with is the psychological effect on those living alone. These persons are affected by the risk of isolation. Working for hours at home without team members and close family to communicate with is stressful. Organizations provide for health breaks and social platforms as a way of helping staff to de-stress. People who live alone can be glued to their computer a whole day and miss these sessions which are supposed to be a part of the routine to make the worker efficient. The adverse health effect cannot be recounted; it has a long-term effect on productivity, staff cost and the bottom-line.
Opportunities presented by COVID-19 to Human Resource Management
The current situation is not all negative, as it presents some opportunities for organizations to rethink their modus operandi and seek ways of ensuring delivery. HR can organize virtual training which may be cost effective, trainers have developed technics for delivering training programs which will normally be delivered abroad. Depending on the mix of recruitment strategies combined, HR can hire persons virtually and save on the cost of transporting interview panel members. There is also room to develop new organisational values and culture outside the known traditional culture. HR needs to research and introduce new social connections such as virtual happy hours, health breaks, lunch breaks and forums in keeping with the socialization practices. These practices may either leave employees content or dissatisfied as it could bring memories of the known social interaction, however it cannot be overlooked.
Human Resource Actions
To guide staff and the remote off-site working, HR Managers have the responsibility of developing guidelines, policies and procedures to avoid cross contamination, limit human contact, enforce adherence to the health protocols, reinforce new organizational culture and in some sectors review ‘person fit’. Depending on how long this pandemic persists, HR will need to review where it draws talents who are able to fit in the status of operation and are fit for purpose. One important consideration during recruitment is the determination of candidate’s flexibility to work with others and commune with colleagues, this is being eroded by the pandemic and potentially affects productivity and employee well-being. Regular employee engagement will help collate information on expectations from employees including the impact of virtual work/social activities compared to face-to-face interactions. To help the staff manage time and family expectations, HR needs to organize forums to discuss how individuals have successfully handled the same and set systems to track delivery.
HR needs to provide employees with cognitive and emotional resources to manage the coaching on self-responsibility, productivity and well-being and at the same time reduce the feeling of isolation, loneliness and social exclusion. Organizing regular virtual team meetings to enforce interactions will go a long way to promote high working spirit.
Conclusion
It is not yet clear what the long-term effects of COVID-19 could be, there is little reason to believe its impact on organizational life will be short-lived. The effect is not only on productivity and organisational survival but the risk of future health crises and psychological trauma. HR and management of organisations must therefore put in place plans that look at the new reality and offers new opportunities for managing human resource and business operations. The discussions on implications of COVID-19 on the survival of any business, the adjustment of employee well-being and productivity, the systems required to remain relevant must commence in all organisations if it has not been done. Coupled with this is to set an action plan for reaching the set goals.
The Executive Director of the Forum for Agricultural Research in Africa (FARA), Dr Yemi Akinbamijo, has called the Nigerian government to enlarge its capacity to deploy science for the agricultural sector. Akinbamijo made the observation on Tuesday during a virtual conference organised by the Open Forum for Agricultural Biotechnology (OFAB) and the National Biotechnology Development Agency (NABDA).
The conference, which was themed Technological Interventions in Mitigating the Impacts of COVID-19 on Nigeria’s Food Security, hosted various industry leaders.
The director described Nigeria as an “emerging leader in biotechnology”, added that the country will be Africa’s “litmus test for the success or failure” of biotechnology policies. Biotechnology is a broad area of biology that uses living systems and organisms to develop or make technology-enhanced products to solve human problems. Akinbamijo explained, “Nigeria as a country has all the wherewithal when it comes to deploying technology and all it would take for Nigeria to confront the situation without Nigerians having to go to bed hungry
“Nigeria cannot afford to have a weak NABDA, a weak biotechnology [system] that will undermine the face of the field.
“COVID-19 is creating job losses in the agriculture sector. We need to empower them [actors in agriculture] technologically in a way that one plus one is not two.
“We need one plus one to be greater than three. And you can only do that when you have biotech behind you. With the people here today, we are on the right path.”
On his part, Dr Abdularazak Ibrahim, a Research Consultant at FARA, pointed out that statistics from the World Bank predict that Africa’s agricultural production will decline by 2.6 -7% in 2020 as a result of COVID-19. Ibrahim added that while Nigeria is an emerging continent leader, it is lagging behind on a global scale with just 38 scientists per million people.
He also noted that technologies could be to mitigate food shortages, extend the storage capacity of food produce, strengthen the food supply system, trade and labour market, among others.
“To use technology, you need to plan to use it. COVID-19 will be around for a long time. This means we need to create ways to work with the pandemic as the new normal. Technology will help ensure that safety nets that are inclusive are created,” he added.
The don also called on the FG to review the country’s National Agricultural Investment Plans (NAIPS) for proper implementation with COVID-19 taken into consideration. Also speaking during the conference, Minister of Agriculture and Rural Development, Mohammed Sabo Nanono, underscored the importance of biotechnology in securing Nigeria’s food system.
According to him, biotechnology plays an important role in solving agricultural problems such as low yield, pest and insect infestation and post-harvest losses.
He explained, “Technology is critical in today’s world, and its relevance in agriculture is all the more crucial in preventing farmer crop losses, diseases and hence, market excess, and the achievement of appropriate pricing for farms inputs, services and produce.
“This is particularly important for smallholder farmers as they bear the brunt of unavoidable movement restrictions imposed by the government in the on-set of the pandemic that serves to distract agricultural stability across the world.
“However, biotechnology, in particular, is set to play an even bigger more intense role in improving the food security situation in Nigeria.
“It is important to state for the preliminary point that for thousands of years, farmers have been using breeding techniques to modify the genetic states of crops and animals in order to improve quality and yield.
“Modern biotechnology is, therefore, a crucial tool in the drive to produce plants and animals that produce traits capable of enhancing human capacity to secure food systems.
“Similarly, with the aid of biotechnology, we can extend the shelf life of produce. Without the galvanising power of biotechnology, processing and value-addition which are critical for agro-industrialisation will be discarded.
“With COVID-19, however, biotechnology has proven to be a critical part of the resource.”
The Nigerian government said it has concluded plans to carry out COVID-19 tests for five million Nigerian farmers across the different regions in the country.
This was disclosed by the Minister of Agriculture and Rural Development, Sabo Nanono, on Tuesday, while delivering his keynote speech on the theme, ‘Technological interventions in mitigating impacts of COVID-19’, during a virtual meeting with major players in the sector.
“I am happy to announce that plans are in place to test five million Nigerian farmers as part of Mr President’s mandate for famine inhibiting food production,” he said.
The minister did not disclose the plans for a country that has tested less than 300,000 people for COVID-19 since February when it had its index case.
An earlier announcement by the health minister, Osagie Ehanire, for the country to test two million people in three months could not be achieved.
On Tuesday, Mr Nanono highlighted some of the major roles biotechnology has played in achieving food security. He said modern biotechnology is a crucial tool in the drive to produce plants and animals that possess traits capable of enhancing humanity’s capacity to secure its food systems.
He said with the aid of biotechnology, the shelf life of agricultural produce can be extended.
“Indeed, without the galvanising power of biotechnology, processing and value addition, which are critical for agro-industrialisation would be retarded,” he added.
He said the ministry will continue to support investments in science and technology.
The minister said he had directed the commencement of a comprehensive appraisal of the Nigerian agricultural research system, with a view to identifying ways of enhancing the performance of research institutions.
He noted that the management and staff of these institutions are hereby requested “to join hands with the governments in seeking technology-based solutions to existing problems such as low yield, pest and insect infestation, as well as post-harvest losses.”
“Emphasis should also be placed on demand-driven beneficial technologies,” he added.
In his remarks, Yemi Akinbamijo, the executive director, Forum for Agricultural Research in Africa (FARA), said Nigeria is a significant player in the promotion of Sustainable Development Goals in the continent.
He said Nigeria has the wherewithal to deploy technology “that will not allow Nigerians go to bed hungry every night*.
“I believe very strongly that Nigeria is an emerging leader to deploy technology,” he said.
“We will not do well if we continue to plant grains instead of seed. We will not do well if we continue to broaden the yield gap,” he said.
He said even as COVID-19 is causing job losses, there are more opportunities in the agricultural sector to be leveraged upon.
“One plus one should not be two, it should be greater than three or more. Tissue culture is the way to go,” he said.
Also, Alex Akpa, director general, National Biotechnology Development Agency (NABDA), said biotechnology can help improve agricultural crop productivity which could help avert a looming food crisis triggered by the COVID-19 pandemic.
He said plans are ongoing to produce over one million yam seeds which would be made available to farmers for cultivation in due course.
Others who joined the session were, Rose Gidado, country director, Open Forum on Agriculture Biotechnology (OFAB); Mohammed Ishaku, director, Institute for Agricultural Research (IAR), among others
Rice is one of the staple foods in Ghana and is used to prepare different kinds of dishes. It is usually the dominant food on the menu of most restaurants and roadside eateries in the county.
As such, there is a high demand for the crop in the crop in the country and in the sub-region in general.
However, the country is unable to produce enough to meet the local demands and has to import to make up for the shortfall.
Even though Ghana produces rice, the level of production has not been able to match with the demand and there are many issues militating against the local production of the commodity.
Aside from the climate playing a role in the low production of rice in Ghana, the farmers also lack the required technology and seedlings adaptable to the climate.
According to a Research Associate with the Forum for Agricultural Research in Africa (FARA) Dr. Paul Boadu, the CSIR- Crop Research Institute is in the process of developing a GM rice variety called Newest rice, which, is been engineered to have nitrogen use and water use efficiency traits as well as a salt-tolerant trait.
The new rice variety is also drought-resistant and suitable for the two agricultural climates of the country.
“Rice is one of the major food staples consumed in Ghana with consumption outstripping domestic production and 66% of rice consumed being imported,” he said.
He indicated that government of Ghana imports rice to the tune of $151m to $1.2bn primarily from Thailand, Vietnam, and India.
“There is a cultural preference in Ghana for imported rice, as it is seen as being better quality” he added.
Sharing his views on Ghana’s Rice Sector, Challenges Smallholder farmers are facing and the role of modern technology in improving Agricultural productivity and livelihood, Dr. Boadu said adopting this rice would offer a lot of benefits to farmers as their incomes would improve whiles consumers also pay less for the commodity as prices would reduce.
He said an economic assessment by a research consultant showed that the country would gain GHȼ 230 million annually if she adopted the nitrogen efficient rice as the crop was drought resistant and utilized its nitrogen from the atmosphere making it to do well.
“We observe that most of the rice produced in the country is lowland rice but due to climate change and effects of drought, they are not able to do well but the nitrogen efficient rice is actually a highland rice that does well in lowland areas as well,” he said.
Professor Walter Alhassan, Former Director-General of CSIR said the nitrogen efficient rice variety is good to revolutionize the country’s agricultural sector urging government to adopt them as part of the Planting for Food and Jobs programme to help boost food production and nutrition of the people.
According to a report released last week by Graham Brookes, director of PG Economics, farmers who planted genetically modified (GM) crops increased their incomes by almost $19 billion in 2018 and reduced carbon emissions by 23 billion kilograms or the equivalent of removing 15.3 million cars from the roads that year.
The report adds that the higher income represents $4.42 in extra income for each extra dollar invested.
“GM crop technology continues to make an important contribution to reducing the environmental footprint of agriculture and securing global food supplies in a sustainable way. It has also helped lift many small, resource-poor farmers and their families in developing countries out of poverty” said Graham Brookes.
The Director-General of the National Development Planning Commission (NDPC), Dr. Kodjo Essien Mensah-Abrampa said that the NDPC is developing a policy document on Genetically Modified Organisms (GMOs) for Ghana’s agriculture sector.
He indicated that the long-term policy document on GMOs will be launched in the coming months.
“Anywhere agriculture has developed in the world, you have excellent crop biotechnology policy” he added.
