Business

African Smallholders in $1t Deal to Push Economic Growth

Published

7 years ago

September 10, 2017

African Smallholders in $1t Deal to Push Economic Growth

African agricultural entrepreneurs are set to take advantage of the free market to encourage the continent economic growth from food production and agribusinesses. A Africa Agriculture Status Report (AASR), said there were opportunities of a rapidly growing food market in Africa that may be worth more than $1 trillion each year by 2030 to substitute imports with high value food made on the continent.

According to the report, agriculture will be Africa’s quiet revolution, with a focus on Small Medium Enterprises (SMEs) and smallholder farmers creating the high productivity jobs and sustainable economic growth that failed to materialise from mineral deposits and increased urbanisation.

It stated that despite 37 percent of the population now living in urban centres, most jobs have been created in lower paying and less productive sectors even when the agriculture sector accounted for more than half of the continent’s GDP. It added that smart investments in the food system can change this picture dramatically if planned correctly.

Commenting on this year’s report findings, president of the Alliance for a Green Revolution in Africa which commissioned the study, Dr. Agnes Kalibata, said: “Africa has the latent natural resources, skills, human and land capacity to tip the balance of payments and move from importer to exporter by eating food made in Africa. This report shows us that agriculture involving an inclusive transformation that goes beyond the farm to agri-businesses will be Africa’s surest and fastest path to that new level of prosperity.”

According to her, Africa can only succeed if her agricultural revolution is made to be different from those seen in the rest of world. This is besides requiring an inclusive approach that links millions of small farms to agribusinesses, creating extended food supply chains and employment opportunities for millions including those that will transit from farming. The report stated that this is in contrast to the model often seen elsewhere in the world of moving to large scale commercial farming and food processing, which employs relatively few people and requires high levels of capital.

The report highlights the opportunity for Africa to feed the continent with food made in Africa that meets the growing demand of affluent, fast growing urban populations on the continent looking for high value processed and pre-cooked foods.

Furthermore, it advocates that this opportunity should be met by many of the continent’s existing smallholder farmers. The report lamented that currently part of this growing demand for Africa’s food is met by imports which amount to $35billion per annum and are expected to cost $110billion by 2025 unless Africa improves the productivity and global competiveness of its agribusiness and agriculture sectors.

The report acknowledges that the private sector holds the key to the transformation of the food system so far. “Impressive value addition and employment is being created by SMEs along value chains in the form of increased agricultural trade, farm servicing, agro processing, urban retailing and food services. Large agribusinesses like seed companies, agro processors and supermarkets are also playing an increasing role in the food value chain in many regions,” said the technical director of the report, Peter Hazell.

The report also stated that left to the private sector alone, growth in the agrifood system will not be as fast as it could, nor will it benefit as many smallholder farmers and SMEs as it could. It asked for government support to stimulate and guide the transition. It added that as a matter of priority government need to create an enabling business environment and in particular, meet targets to invest ten percent of GDP in agriculture, agreed at the 2003 African Union (AU) Summit as part of The Comprehensive Africa Agriculture Development Programme (CAADP).

The report also urged government to nurture a globally competitive food production sector through measures such as increasing infrastructure investment in secondary cities and towns, improving the reliability of energy and water supplies and building more wholesale market spaces. Others are the promotion of promoting open regional trade, identifying and investing in first mover crops and introducing stricter standards for food safety and quality.

The authors also called on governments to stimulate new private public partnerships for more innovative financing and insurance provision which can lead to increased resilience for farmers and their households. It lamented that while global agricultural insurance is a $2 billion business, Africa accounts for less than two percent of the market.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Business

Onne Port Gets $115M Boost as VP Shettima Inaugurates New Terminal Equipment

Published

2 days ago

September 5, 2024

Samed Olukoya

Nigeria’s Vice President, Kashim Shettima, has inaugurated a new $115 million terminal equipment at the Onne Seaport in Rivers State.

Represented by his Personal Assistant on Subnational Infrastructure, Mr. Musaddiq Mustapha, the Vice President said the new will aid infrastructure development and catalyze economic growth.

According to the Vice President, the new upgrade is expected to enhance the operational efficiency of the port and improve trade within Nigeria’s maritime sector.

The upgrade was spearheaded by the West Africa Container Terminal (WACT), a subsidiary of APM Terminals.

It included the installation of advanced terminal machinery, an upgraded administrative building, and a cutting-edge CCTV surveillance system.

“This equipment will open new opportunities for trade development in Nigeria’s maritime sector,” Shettima said.

He lauded WACT and its partners for their dedication to modernizing the port and ensuring its competitiveness.

Frederik Klinke, Managing Director of APM Terminals, highlighted the company’s strong safety record and its long-standing commitment to manpower development programs that benefit local communities.

He thanked the federal government for creating an enabling business environment that has allowed the terminal to thrive for nearly three decades.

In attendance was the Minister of Marine and Blue Economy, Mr. Gboyega Oyetola, who commended APM Terminals for its continued investment in the West Africa Container Terminal.

He assured that the ministry would continue to back modernization efforts aimed at reducing the cost of doing business in Nigeria.

Company News

Dangote Refinery Denies NNPC Petrol Lifting Claims Amid Ongoing Contract Talks

Published

2 days ago

September 5, 2024

Samed Olukoya

Dangote Refinery has refuted claims that the Nigerian National Petroleum Corporation (NNPC) had begun lifting petrol from the refinery and set the pump price at N897 per litre.

In the BusinessDay publication, the newspaper reported that NNPC commenced petrol lifting on Wednesday and set the pump price at N897/litre.

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Refinery clarified that NNPC has not yet begun lifting Premium Motor Spirit (PMS) from the refinery.

According to Chiejina, discussions between Dangote Refinery and NNPC on the contract for petrol lifting are still ongoing and have yet to be finalized.

Chiejina said since no petrol has been lifted, the claim of setting a price for the product is unfounded.

He further noted that the pricing of PMS falls under the jurisdiction of the government and is strictly regulated, meaning Dangote Refinery has no authority to set prices independently.

The company assured Nigerians that once operations begin, the refinery will deliver high-quality petroleum products across the country.

Chiejina urged the public to disregard the misleading headline and assured that accurate information will be provided as the refinery prepares to commence full operations.

The statement concluded by reiterating Dangote Refinery’s focus on contributing to Nigeria’s energy sector and meeting the nation’s demand for top-tier petroleum products.

Business

Femi Otedola Applauds Dangote’s 25-Year Journey to Energy Revolution

Published

4 days ago

September 3, 2024

Samed Olukoya

Billionaire businessman Femi Otedola has congratulated his long-time friend and business partner, Aliko Dangote, on the success of Dangote Refinery.

In a heartfelt message released on his X account @realFemiOtedola, the billionaire reflects on their shared 25-year journey to reshape Nigeria’s energy sector.

Otedola said “Aliko, it feels like just yesterday, but it has been 25 long years since we first set our sights on transforming Nigeria’s energy landscape. I remember vividly when we set up the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries—20% for me and 51% for you. We were ready to change the game, but fate had other plans. The government of the day, in an act I can only describe as utterly obnoxious, canceled our stakes and thwarted our vision. But, as always, you refused to be deterred.”

“You never gave up on the dream we shared. You carried the torch forward, igniting a spark that has today become a roaring flame. And now, 25 years later, here we stand on the precipice of history, with the first fuel shipment from the Dangote Refinery—a feat that is nothing short of miraculous.

“While the Kaduna and Port Harcourt refineries have remained dormant, their promise unfulfilled despite billions of dollars spent on so-called turn-around maintenance, you have achieved what many said was impossible. You have beaten all the skeptics, silenced the naysayers, and proved wrong those who doubted your resolve, even those who never wanted this project to succeed.”

You have not just built a refinery; you have liberated us from the chains of economic dependence that have held this nation back for far too long. The days of bowing to foreign powers for our fuel needs are over, thanks to your vision and determination.

“You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery. These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end.

“I am reminded of the time you revolutionized the cement industry in Nigeria. Ships that once brought in cement turned into rusting relics, scraps of a bygone era. Now, with your refinery in full swing, I foresee a similar fate for fuel imports. The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high.

“The world has changed, and those who do not adapt will be left behind. When I ventured into the depot business with Zenon, it was in response to the inefficiencies of the NNPC. Zenon pioneered the diesel business in Nigeria and quickly became the largest in the country, filling the gaps left by our inefficient system.

“But today, your refinery stands as a beacon of what is possible when one has the audacity to dream and the tenacity to see it through. Aliko, you have my deepest admiration and respect. Congratulations to you and the entire board, management and staff of Dangote Refinery on this monumental achievement.

“This is not just a victory for you but for every Nigerian who dares to dream. May this be just the beginning of even greater things to come.”