What is the Future for Small Farms in Africa and Renewed Role for Farmers?

1. WHAT IS THE FUTURE FOR
SMALL FARMS IN AFRICA AND
RENEWED ROLE FOR
FARMERS?
Mabel Ndakaripa Munyuki-Hungwe
(PhD)
Barefoot Education for Afrika Trust
ndakaripahungwe@gmail.com

2. African smallholders
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Africa has shown some impressive growth rate
in real GDP (5%)
Growth due to enabling policy and business
environment, favourable commodity prices (in
some) and improved peace and stability
(AfDB, 2013)
Success: central Kenya: coffee, dairy,
vegetable; South west Nigeria: tomatoes &
peppers; Ghana (Brong-Ahafo) tomatoes
achieving higher gross margins from land and
labour in commercial enterprises

3. African smallholder farmers
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But this has not translated to jobs, wealth,
income growth, poverty reduction & food
security needed to transform Africa
388 million Africans still live in poor conditions,
239 million are under nourished and of the 20
least competitive economies, 14 are African
(WEF, 2012)
But Africa possesses greatest potential to
create wealth and transform especially through
agriculture

4. Africa Real GDP Growth Rates by Sub
Region 2000-2060 Source: AfDB Database and Projections

5. African agriculture

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Agriculture still the main stay – employment &
livelihoods of many economies
Agriculture contributes to foreign exchange
earnings
Investment is therefore crucial
African leaders through CAADP have also in
their part placed agriculture on the agenda in
development to improve food & nutrition
security, increasing incomes in African
communities (what is needed is more
implementation)

6. Small holder farmers

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Globally there are 450 million smallholder
farmers
Africa has about 63 million such farmers
Income ranges between $170 -$570 per
annum
Many farm on less than 2 hectares
Many only market produce within their locale
Less than 10% have entered lucrative export
value chains

7. But Small farms offers opportunities
Can:
 use land more efficiently
% of all farms
Farm size (ha)
Africa
<2

produce cheaper and
more nutritious foods

increase own incomes
and productivity

promote equity, hunger,
and poverty reduction
80
2-10
15
10-100
3
>100
0
Source: Calculations based on most recent data available from FAO
Agricultural World Census from late 1980s-2000s
AND average farm size in Africa will continue to decline due
to rural population growth therefore: SMALL FARMS HAVE
BECOME THE NEW FORCE FOR AFRICAN
AGRICULTURAL TRANSFORMATION

8. New challenges facing African
smallholders
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Poor access to inputs (SSA pay high prices for
fertilizer hence use less in the world), credit,
support services, knowledge to boost
production
Smallholders face risks to climate shocks, pest
& disease outbreaks, have limited access to
risk reduction strategies (safety nets)
Some face poor information, resources and
bargaining power
Land scarcity, acquisitions as they compete
with the state, multi national corporation, other
communities

9. Challenges & opportunities
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Africa increasingly being rapidly urbanised
trends show that by 2020-2030 most of Africa
will predominantly urbanised (Reardon et al, 2013)
Emergence of an African middle class
economy both rural and urban with more non
staple foods: wheat, processed foods, milk,
meat, poultry, fruits and vegetables
African youths an untapped resource yet 40%
of workforce is under 23 years of age (Rukuni,
2013)
Almost every smallholder farmer has a mobile

10. Source: Adapted from Haggblade, 2012

11. Smallholders opportunities
“Meeting global increases in
demand for agricultural products
will be difficult without sourcing
from African smallholder farmers
(GIZ)
 Africa has the potential to increase
annual agriculture production output
from $230 billion to $800 billion by
2030 (McKinsey, 2010)


12. PPP Partnerships
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
Mobilizing Private Sector Finance through
innovative and targeted Public Private
Partnerships is central to unlocking the
potential of African Agriculture.
Need for better negotiation skills among
African farmers especially farmer
organisations

13. Promote Transformative and
Targeted public-private
partnerships

14. The 12 pillars of Competitiveness (Source: World Economic Forum)
Basic Requirements
•Institutions
•Infrastructure
•Macroeconomic stability
•Health & education
Efficiency Enhancers
•Technological readiness
•Higher education & training
•Goods market efficiency
•Labour market efficiency
•Financial market sophistication
•Market size
Innovation & Sophistication
factors
•Business sophistication
•Innovation
factor driven
economyAGRICULTURE MINING
efficiency – driven
economy
MANUFACTURING
innovation –driven
KNOWLEDGE
economy

15. New roles for African small
farmers
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Rebuild agriculture production capacity
Revamp the agro industry
Priority to diversifying into cash and
commercial commodities
Target value-chains high end markets
Add value locally and own the FARM TO
SUPERMARKET VALUE CHAIN
Increase competitiveness of the African
Agricultural Sector from production to
manufacturing
Major paradigm shift (transformation)
needed
More policy/advocacy representation

16. Prime movers necessary for
agricultural development
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Human capital development – professional, managerial and
technical skills necessary in the sector
Sustained growth of biological capital (improved genetic
and crop and animal husbandry) and physical investments
in dams, irrigation and roads
Improved performance of institutions (marketing, credit,
research, extension and settlements) currently many key
agricultural institutions under stress
Favourable economic policy environment and political
support for agriculture over long terms (CAADP)
New technology produced by private and public
investments in agricultural research
Land/agrarian reform – improved tenure security and
wealth creating capacity than before

17. Thank you! Asante Sana!
Merci!