(L-R) Dr. Agnes Kalibata, AGRA President; Edouard Ngirente, Rwandan Prime Minister; H.E. Hailemariam Desalegn, AGRA Board Chair; and Dr. Musafiri Ildephonse during the launch of the Africa Agriculture Status Report at the ongoing Africa Food Systems Summit in Kigali.
A new report from AGRA has highlighted the crucial role micro, small, and medium-sized enterprises (MSMEs) play in building Africa’s food systems. The 2024 Africa Agriculture Status Report, titled “Harnessing the Private Sector for Food Systems Transformation in Africa,” reveals that MSMEs manage around 85% of agrifood value chains and drive approximately 80% of Africa’s food economy.
Dr. Agnes Kalibata, President of AGRA, emphasized the importance of MSMEs in transforming Africa’s agrifood landscape. “The private sector, particularly MSMEs, has a vital role to play in driving food systems transformation and achieving sustainable growth,” she said. “By harnessing the power of the private sector, we can drive meaningful food systems transformation and achieve sustainable growth.”
The report showcases success stories from across the continent, where investments in MSMEs have driven growth and transformation in the agrifood sector. In Nigeria for example, the country’s ocoa sector has undergone a significant transformation thanks to strategic investments in modern farming techniques and processing infrastructure.
Similarly, Ghana’s agricultural landscape has been revolutionized by mobile platforms like AgroCenta, which provide farmers with vital market information, access to credit, and improved input distribution.
Kenya’s investment in macadamia nuts, coupled with the adoption of digital platforms for farm management and market access, has positioned the country as a leading exporter despite regulatory and market challenges.
Across the continent, digital technology is transforming agricultural value chains by enhancing access to inputs, credit, and market information. Innovative platforms like M-Kulima and M-Pesa in East Africa are streamlining transactions and boosting input distribution efficiency.
Digital tractor leasing services, such as Hello Tractor, are increasing mechanization accessibility for smallholder farmers, thereby boosting productivity and reducing costs.
Furthermore, Tanzania’s agro-industrial parks are driving food processing and value addition, while Zambia’s investments in veterinary services, feed production, and market access are propelling growth in its livestock sector, leading to improved animal health, expanded export opportunities, and contributing to national economic development.
However, MSMEs face significant challenges, including inadequate infrastructure, limited access to finance, and regulatory barriers. To address these, the report recommends targeted investments in infrastructure, enhanced financial access, and streamlined regulatory processes.
Dr. Kalibata urged governments, development partners, and private sector stakeholders to collaborate in addressing the challenges faced by MSMEs and seizing growth opportunities. “By supporting MSMEs and implementing effective policies, we can advance Africa’s agrifood systems toward greater sustainability and resilience,” she said.
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New report highlights MSMEs’ role in building Africa’s food systems
