Getting down to (agri) business.

• Author: Cesca, Ray
• Position: The World Today

THE PLIGHTS of the African business and agricultural sectors are well-known and -documented--the lack of productivity and quality food, or the large number of people living on less than one dollar a day. What is not known by most, however, is that African strife runs much deeper. Weak agricultural sector governance affects upstream and downstream activities. Poor access to remunerative markets leads to poverty and inequitable compensation for farmers. Unfair gender practices regarding land and natural resources, coupled with a discriminatory education system, lessen opportunities for women. Reliance on rain-fed agriculture and a low investment in increased production keep crop yields--most notably in the sub-Saharan region--at alarmingly low rates.

Isolated, these issues are daunting and appear insurmountable or incapable of remedy through the pennies a day requested from the general public. The idea is that, with rising international trade, all economies would benefit. That has not been the case for developing nations where agricultural productivity actually has declined instead of increasing. Since three-fourths of the world's extremely poor population lives and works in rural areas where agriculture is the main source of income, this situation puts even greater pressure on the economies' ability to raise themselves out of this bleak business landscape.

Africa is no exception. Agriculture is the solution to bring Africa to its feet and stand tall among its peers. Investments in agriculture hold foreseeable hope. Various responses have been proposed to reverse the agricultural slide. In 2002, African heads of state and government, to improve agriculture, food security, and trade balance, endorsed the Comprehensive Africa Agriculture Development Program, a proposal outlined by the New Partnership for Africa's Development. In addition to helping extend the area under sustainable land management and improving the rural infrastructure, the CAADP aims to remedy poverty conditions and improve agriculture research and technology dissemination. Since that time, economic growth rates have risen. Yet, this has not translated into a decrease in poverty due to an inadequate distribution of the opportunities created by growth. Large percentages of growth, particularly in countries such as Angola and Sudan, were a result of petroleum extraction, not from an improvement in the agricultural sector. Despite the upward trend, on average, the population is poorer now than it was 25 years ago, according to a United Nations' economic report.

In order for the pendulum to swing toward progression--in essence, for Africa to become a desirable and profitable business investment --a reassessment of the agricultural value chains and related sectors, as well as research and extension programs, are necessary. These challenges are multifaceted and demand commitment of respective African governments to the agricultural sector in terms of policy and physical investment. Little success has been seen in reversing the decreasing trend of addressing solutions to this chronic situation, despite large investments by the World Bank, numerous foundations, and others.

In order for change to occur, various topics need to be addressed on a global stage: successful indigenous business models supporting entrepreneurship; the role of women in agriculture and their contribution to economic development; finance and risk alleviation tools for investing in agriculture at the micro and macro levels; intracontinental trade and its importance in developing internal supply chains; examining the role of biofuels in the continent as a contributor to economic growth and to help rationalize the food versus fuel debate; the contribution of higher education at each level along the value chain creating a brain trust that fosters the needed alterations over the long term; and the availability of fresh water. All of these may seem disparate and unrelated, but they are codependent, influencing each other, and the model for change.

Agriculture is big business. Investments in agriculture...