Unleashing Africa’s agricultural potential

At the World Economic Forum roundtable in Riyadh themed “Food and Water for All,” Akinwumi Adesina, President of the African Development Bank Group, passionately called for a coalition of public commitments and private sector financing to unlock Africa’s “impressive” agricultural potential.

He emphasized the need to pave the way for the continent’s food self-sufficiency and its contribution to global food security. Adesina urged greater cooperation between governments and the public and private sectors to transform African agricultural production, enabling it to “feed the world.”

During this roundtable, co-hosted with CNN International, global leaders and experts acknowledged that Africa has the land and water necessary to achieve this noble ambition, but lacks significant investments and regulatory frameworks to properly harness its abundant unused land and vast water resources.

The President of the Bank Group emphasized that Africa needs a massive and widespread increase in investments in the infrastructure of this sector, aiming for approximately $78 billion by 2050.

“The potential is undeniable, but no one eats potential… We must unlock this potential,” he stated. To achieve this, he stressed that the private sector is crucial but must be partnered with well-managed and administered regulatory public bodies.

Overall, Africa is abundant in water, but some of it is underground. Tapping into this potential and making much wider use of modern irrigation techniques, including those offered by artificial intelligence (AI), are strategic goals.

“We need greater involvement from the private sector; our public services are weak and poorly functioning; we need to improve governance,” he stated, adding that significant concerted action will help create an agricultural sector worth about $1.3 trillion by 2030.

The panel explored how targeted investments and cutting-edge technologies could address the urgent needs of 2.4 billion people who lack adequate food and 2.2 billion people who lack access to clean water worldwide, highlighting Africa’s role in this global challenge.

Akinwumi Adesina also underscored the importance of smallholder farmers and the need to provide them with new varieties of heat-resistant and water-efficient seeds. “Access to new technologies comes at a cost, but the Bank has demonstrated the extraordinary impact that efficient climate-resilient varieties can have,” he said.

The President of the Bank noted that his institution had invested three billion dollars solely in water-related projects over the past three years, connecting 15 million people to water and 17 million to sanitation, but millions of people still faced shortages.

He emphasized initiatives such as the African Water Facility and called for more similar approaches. Hosted by the Bank, the African Water Facility provides grants and specialized technical assistance to prepare innovative and bankable projects in the water sector, ready to attract private investments across Africa.

Situmbeko Musokotwane, Zambian Minister of Finance and National Planning, appealed to global investors: “We have the land. We also have abundant water. What we need are financial resources and management expertise to turn these assets into productive agriculture,” he stated.

The Zambian Minister underscored the vital role of technology in optimizing resource utilization, especially in agriculture, to ensure global food security.

Echoing this sentiment, Jai Shroff, CEO of UPL Ltd, shared his thoughts on recent agricultural innovations in Zambia. “We’ve replaced maize with sorghum, which is more drought-resistant. The results have been remarkable: sorghum has achieved a yield of 100% while surrounding maize crops perished.”

He also advocated for large-scale agriculture as an economic transformation driver by stressing the need to secure land rights to attract long-term investments. However, Akinwumi Adesina cautioned, reminding participants of the importance of smallholder farmers, who produce a significant portion of Africa’s food. “While encouraging modernization and expansion, we must not overlook smallholder farmers who are the backbone of our rural economies.”

The panel also addressed the economic and environmental costs of water supply through non-traditional means.

Lina Noureddin, Chairperson of Lamar Holding, discussed the high cost and energy requirements of desalination, a crucial technology for regions where water is scarce. “Desalination currently costs 2 to 3 times more than accessing surface or groundwater. Despite this, it is essential for regions like North Africa where water stress levels are extremely high,” she explained.

After discussing environmental sustainability, the panel shifted its focus to resilience and economic potential.

Akinwumi Adesina challenged misconceptions about investment risks in Africa, citing a recent Bloomberg analysis that revealed the default rate on infrastructure loans in Africa is significantly lower than in other regions. “Perception of risk often overshadows reality. Africa’s actual default rate is relatively low, and we have mechanisms such as partial credit guarantees to further mitigate risks,” he clarified.

Panelists denounced the premium Africa pays for water security and agricultural productivity due to aging infrastructure, climate challenges, and underinvestment. They called for a paradigm shift in how investments are channeled to the continent, advocating for innovative financing models, better risk management, and increased support for technological adaptation.

At the end of the session, the call to action was clear: “Let’s move beyond discussions about potential and focus on feasible investments and collaborations that will unlock Africa’s agricultural capabilities,” urged the President of the AfDB.

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