The Key to Narrowing the Development Gap

Jan 25 , 2025
By Pascal Lamy , Ibrahim Assane Mayaki

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African agri-food systems, fueled by a skilled and youthful workforce and vast arable land, present an enticing business prospect. Investments here are 2.5 to three times more effective in income generation than other sectors. In this commentary provided by Project Syndicate (PS), Pascal Lamy, the vice chair of the Paris Peace Forum and co-chair of ATLAS; Agnes Kalibata, president of the Alliance for a Green Revolution in Africa; and Ibrahim Assane Mayaki, the African Union Special Envoy for Food Systems and co-chair of ATLAS, urge coupling these with infrastructural development to revolutionise African agricultural systems into major engines of growth.

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In 2015, United Nations member states unanimously pledged to work toward "peace and prosperity for people and the planet" by meeting 17 Sustainable Development Goals (SDGs) by 2030. Although the agenda was unprecedented in its ambition – end hunger, slash inequality, spur economic growth, achieve gender equality, arrest climate change, and ensure access to water, sanitation, and energy – many expected that the world would make significant progress.

But the sad, hard truth is that only 12pc of the SDGs' 140 measurable targets are heading in the right direction, and more than 30pc are stalled or moving in reverse.

There is still hope, though. A single sector that holds the key to closing half of the outstanding sustainable development gaps in agri-food systems in Africa. The continent is home to over half of all people facing extreme poverty, and more than half of those facing acute food insecurity. One in five people in the region suffers from undernourishment, and nearly one in three children is affected by stunting. Africa is also home to around one-fifth of the global agricultural workforce and is projected to become home to 49pc of migrants displaced by climate shocks by 2050.

Thus, investing in African agri-food systems can have an outsize impact, allowing us to tackle a range of thorny issues – from hunger and poor health to poverty and undereducation – at the scale needed to keep up with the growth of Africa's population, which is expected to double, to 2.4 billion, by 2050.

The biggest hurdle, of course, is financial. African agri-food systems are seriously underfunded. The sector receives less than three percent of global development funds and under five percent of total investments in Africa from public, private, and development funding combined. The average African farmer receives less than 140 dollar a year in total investment, far below comparable figures for India (800 dollars), Brazil (1,800 dollars), or Thailand (2,000 dollars). Some Britons and Americans spend more on coffee in the space of a month.

This chronic underfunding has taken a heavy toll. African agricultural productivity is 60pc below the global average, and food imports are projected to cost the continent 110 billion dollars annually by 2030. But with targeted capital and sustained attention, this can change. Boosting agricultural productivity would help feed a growing population, reduce import dependency, protect biodiversity, and restore soil health. Greater investments in the sector can secure the livelihoods of 250 million small-scale farmers and address the urgent need for climate resilience in a region disproportionately affected by global warming.

The benefits of investing in African food systems extend far beyond the continent. Africa's natural carbon sinks will continue to mitigate climate change, but only if they are preserved. And strengthened agricultural systems can stabilise global food supply chains against disruptions caused by pandemics, conflicts, and climate shocks, by helping to rehabilitate the continent's farmland, 65pc of which is degraded.

But, unlocking global benefits requires global engagement. Fortunately, African agri-food systems represent a compelling business opportunity. Aside from the fact that the continent boasts an increasingly skilled, youthful labour force and much of the world's remaining arable land, investments in its food systems are 2.5 to three times more effective in raising incomes than those in other sectors.

Investors also stand to gain by coupling agri-food investments with investment in infrastructure such as energy, water, and technology, which will transform African agricultural systems into major sources of growth. Hundreds of small and medium-sized enterprises are already moving inputs, providing services, and hauling hundreds of millions of metric tons of food between rural and urban areas every day. This is a strong base for investors to build on.

So, what needs to happen next?

At the Paris Peace Forum earlier this year, we unveiled the Agricultural Transformation Lab for African Solutons (ATLAS), a permanent platform to advocate for increased investment, align priorities, and promote transparency and accountability in African agri-food systems. Since then, 30 organisations have joined, demonstrating real momentum behind the initiative. Members span from the private sector, including OCP Group and the Boston Consulting Group, development organisations (including AGRA and ONE Campaign) and leading financiers, such as the International Finance Corporation and the French Development Agency (AFD).

At this year's annual World Economic Forum meeting in Davos, ATLAS is launching the 2x30 Challenge, which calls on leading development funders to commit to doubling total annual investments (from about 50 billion to 100 billion dollars) in Africa's agri-food systems by 2030. To ensure that the additional funding does materialise and has a meaningful impact, it will be tracked through an annual investment barometer.

Increasing investment is a first step toward building more productive, sustainable, and resilient African food systems. Supporting Africa's farmers is not only an opportunity. It is indispensable to achieving global development goals.

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PUBLISHED ON Jan 25,2025 [ VOL 25 , NO 1291]

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