Stakeholders has described the plan by African Development Bank, AFDB to invest about US $24 billion into the continents agricultural development in the next one year as a leap towards rescuing the African population from poverty.
Board of Directors of the African Development Bank Group AfDB approved an agricultural transformation strategy for a competitive and inclusive agribusiness sector that creates wealth, improves lives and secures the environment.
Bank will itself invest $24 billion and leverage additional investments through equity, quasi equity, debt and risk instruments to catalyse investments at scale from the private sector and with co-financing from traditional donors and new players.
The document was widely reviewed by global stakeholders, peer institutions and partners as well as through regional consultations held in Rabat, Kinshasa, Lusaka, Dar es Salaam and Accra.
AfDB President Akinwumi Adesina, who chaired the Board, underscored the overwhelming endorsement of the Bank’s agricultural transformation agenda from peer institutions such as the Food and Agriculture Organization of the United Nations, FAO, the International Fund for Agricultural Development, IFAD and the UN Economic Commission for Africa, ECA, along with the private sector and governments.
According to Adesina, “agricultural agenda in particular and the High 5s in general are critical at this time when “almost all of Africa’s rural areas have become zones of economic misery. We should turn them into zones of prosperity.”
“Feed Africa: Strategy for Agricultural Transformation in Africa, 2016-2025,” received unanimous endorsement by Executive Directors of the Bank Group in Abidjan, Côte d’Ivoire, on Wednesday, May 22, 2016.”
The identified financing gap estimated at $23 billion can be met using innovative de-risking tools and blended financing from combined sovereign, pension and private equity funds, according to Chiji Ojukwu, Director of the Bank’s Agriculture and Agro-industry Department, who presented the Strategy at the Board.
Focusing on transformation, scaling up agriculture as a business through value addition, led by the private sector and enabled by the public sector, and using innovative financing mechanisms, the strategy aims to end hunger and rural poverty in Africa in the next decade. It is the second of the Bank’s High five priorities, Light up and power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the quality of life for the people of Africa – a blueprint for the implementation of its 10 Year Strategy 2013-2022.
Realising the objectives of the strategy would involve increased productivity; value addition; investment in infrastructure; creating an enabling agribusiness environment; catalysing capital flows; ensuring inclusivity, sustainability and effective nutrition; all in a coordinated manner.
The idea is to drive transformation through 15 priority commodity value chains in given agro-ecological zones specifically to achieve self-sufficiency in key commodities such as rice, wheat, fish, palm oil, horticulture, cassava; move up the value chain in key export-oriented commodities like cocoa, coffee, cotton, cashew; create a food-secure Sahel in sorghum, millet, livestock; and realise the potential of the Guinea savannah in maize, soybean and livestock.
The Feed Africa Strategy makes a strong case for reversing the situation of a continent that spends US $35.4 billion on food imports annually despite being home to 65 per centof the world’s undeveloped arable land.
Some 70 of Africa’s population and about 80 per cent of the continent’s poor who live in rural areas depend on agriculture and non-farm rural enterprises for their livelihoods. This growing multitude is increasingly unable to meet its basic food needs as population pressures grow, land and water resources become scarce and degraded and agricultural productivity stagnates. The total investment for the realization of the transformation agenda over 10 years is estimated at US $315-400 billion with annual returns of US $85 billion, when fully funded.

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