Victoria Falls, Zimbabwe, 10 March 2015 (ECA) - Africa’s Agricultural transformation cannot take place without the State. Speaking during the official remarks of a two day expert group meeting on Agro-industry development for food and nutritional security in Southern Africa, Victoria Falls, Zimbabwe, ECA Southern Africa Regional Office Director, Said Adejumobi called for the active involvement of the state in the in the agri-industry “Agro-industrial development cannot take place without the state. Not for state to be a producer, but for the state to actively support and if need be subsidize the agricultural sector” he said, arguing that subsidy to agriculture was done all over the world.
Adejumobi said the small and inchoate private sector in many African countries and struggling medium and small scale industries required for the state’s involvement which is key in creating an agricultural entrepreneurial class that would invest in the agri-business.
Meanwhile the Government of Zimbabwe says that without value addition and beneficiation, Africa’s impressive GDP will not reduce poverty or bring food security says. In his opening speech, Head of Fiscal Planning and Investment at the Ministry of Finance and Economic Development Desire Sibanda, said that value addition to Africa’s raw materials remains a daunting problem for the continent while food security remained a major socio-economic issue.
Although agriculture is the dominant economic sector in the SADC with approximately 70 percent of its population depending on agriculture for food, income and employment; findings of a research paper on Agro-industry development for food and nutritional security in Southern Africareveal that the sector only accounts 17% of regional GDP, while most countries in the region are rated food and nutrition insecure with prevalence rates of above 30 per cent. Citing the report, Sibanda expressed concern that the “SADC region is home to some of the countries with the highest hunger rates in the world, including one with about 48 per cent of its population undernourished.”
The two day expert meeting convened by ECA regional office for Southern Africa is expected to provide concrete recommendations on how to strengthen the agro-industry sector through among others partnerships, best practices and lessons from other regions. An issues paper on the same subject is the main document for discussion.
Agricultural sector performance has a strong influence on the economic growth, employment, demand for other goods, economic stability, food security and overall poverty of SADC member States and the region as a whole.
Over 60 experts from southern Africa including agro-industry and agribusiness experts from government institutions, the private sector, SADC institutions, civil society, academia and others development partners are participating in the meeting.