(AFRICAN DEVELOPMENT Bank) – The President of the African Development Bank Group, Mr. Akinwumi Adesina, has made a strong call for a coalition of public commitments and private sector financing to unlock “the impressive» Africa’s agricultural potential, and pave the way for the continent’s food self-sufficiency and its contribution to global food security.
Mr. Adesina made this call on Monday, April 29, 2024, during the World Economic Forum roundtable held in Riyadh on the theme, “Food and water for all All)”. He passionately advocated for greater cooperation between governments and the public and private sectors to transform agricultural production in Africa to enable it to “feed the world”.
During the roundtable, co-hosted with CNN International, world leaders and experts recognized that Africa has the land and water to achieve this noble ambition, but lacks significant investment and regulatory frameworks to properly exploit its abundant unused land and vast water resources.
The Bank Group President stressed that Africa needs a massive and across-the-board increase in investment in infrastructure in this sector, reaching around $78 billion by 2050.
“The potential is undeniable, but no one feeds on potential… We must unleash this potential “, did he declare. To do this, he said the private sector was essential, but it must be associated with the creation of well-managed and administered public regulatory bodies.
Overall, Africa has plenty of water, but some of it is underground. Harnessing this potential and making much greater use of modern irrigation techniques, including those offered by artificial intelligence (AI), are key strategic objectives.
“We need more private sector participation, our public services are weak and poorly functioning, we need to improve governance“, he said, adding that significant concerted action will help create an agricultural sector worth around $1.3 trillion by 2030.
The panel explored how targeted investments and cutting-edge technologies could meet the urgent needs of 2.4 billion people who lack adequate nutrition and 2.2 billion people who lack safe drinking water across the world, highlighting Africa’s role in this global challenge.
Mr. Adesina also highlighted 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 price, but the Bank has demonstrated the extraordinary impact that climate-efficient varieties can produce“, did he declare.
The president of the Bank indicated that his institution had invested three billion dollars in water projects alone over the last three years, connecting 15 million people to water and 17 million to sanitation, but that millions of people still faced shortages. He highlighted initiatives such as the African Water Facility and called for more similar approaches. The African Water Facility, hosted by the Bank, provides grants and specialized technical assistance to prepare innovative and bankable water sector projects ready to attract private investment across Africa.
Situmbeko Musokotwane, Zambia’s Minister of Finance and National Planning, appealed to global investors: “We have the land. We also have plenty of water. What we need are financial resources and management expertise to transform these assets into productive agriculture“, he indicated.
Mr. Musokotwane highlighted the vital role of technology in optimizing the use of resources, particularly in agriculture, to ensure the world’s food security.
Echoing this sentiment, Jai Shroff, CEO of UPL Ltd, shared his thoughts on recent agricultural innovations in Zambia. “We replaced corn with sorghum, which is more resistant to drought. The results were remarkable: the sorghum achieved a 100% yield while the surrounding corn crops died,”Mr. Shroff explained.
He also advocated for large-scale agriculture as a vehicle for economic transformation, as seen in Brazil, emphasizing the need to secure land rights in order to attract long-term investment. Adesina, however, sounded a note of caution, reminding participants of the importance of small-scale farming, which produces a significant share of Africa’s food. “While encouraging modernization and expansion, we must not neglect smallholder farmers who are the backbone of our rural economies“, said Mr. Adesina.
The panel also addressed the economic and environmental costs of providing water through non-traditional means.
Lina Noureddin, president of Lamar Holding, discussed the high cost and energy requirements of desalination, an essential technology for regions where water is scarce. “Desalination currently costs 2 to 3 times more than access to surface or groundwater. Despite this, it is essential for regions like North Africa where water stress levels are extremely high“, explained Ms. Noureddin.
After discussing the issue of environmental sustainability, the panel looked at economic resilience and potential.
Mr Adesina challenged misconceptions about investment risks in Africa, citing a recent Bloomberg analysis which found that the default rate on infrastructure loans in Africa is significantly lower than in other regions . “The perception of risk often overshadows the 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 that Africa pays for water security and agricultural productivity due to dilapidated 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 of potential and focus on actionable investments and collaborations that will unlock Africa’s agricultural capabilities» urged Mr. Adesina.
– Follow the event here
