Stefan Liebing is chairman of the Africa Association of German Business. The manager calls for a better structure of African farms. Jan Rübel asked him about small farmers, the opportunities for German start-ups and a new fund.
Dr. Stefan Liebing is chairman of the Africa Association of German Business. He is the owner and managing director of Conjuncta GmbH in various management functions in the energy industry, most recently at EnBW Energie Baden-Württemberg AG.
Mr Liebing, sometimes people from the German business sector say that there is hardly any opportunity for smaller companies to get involved in Africa. Is that true?
Dr. Stefan Liebing: That's partly true. We still don’t have enough financing options for small volumes. It takes a lot of effort for banks to examine such projects. They are only able to recover their costs from a certain investment level up. This affects small businesses, making it harder to finance smaller ventures in Africa.
Can this burden be reduced?
No, I don’t think so. The transaction costs could be subsidised in areas where developmentally meaningful investments are being considered. If a bank can’t recover its previous auditing costs over the interest on the loan for a project in Africa, a cash infusion could help.
From the German agricultural market perspective, where do you see specific opportunities to become active in Africa?
The agricultural sector is one of the hardest areas for German companies. This is because only very few of the German mid-sized enterprises in agriculture or food processing are building factories or farms abroad. There are only very few investors. Hardly any German farmer ever gets the idea to expand by buying another farm in Malawi, for example. And there are hardly any large German food companies like you can see in our neighbouring countries. Therefore, I only see few investors in that arena.
And what about other industries?
Liebing: It’s better in other areas. For IT start-ups, I see great opportunities to help the agricultural sector in Africa. The focus is on optimising agricultural processes or supporting market transparency or logistics. German companies are well positioned in that area as well as in energy supply and infrastructure. 40 per cent of food in Africa spoils because it is not stored properly. This problem of post-harvest losses could be addressed by German logistics companies. And then we have exciting companies that are more interested in selling products and promoting agriculture, but that's where local investors are needed: The mid-sized sector has companies that would be of great interest to African agriculture, offering machines for food processing or packaging, fertilisers or seeds, and agricultural machinery or tractors.
There is a strong need for well-structured farms that can afford things like that.
AGRA wants to be involved in building these structures. As an entrepreneur, how do you assess this commitment?
I think it's important because in agriculture we need Africans to develop their own initiative. Again and again it becomes apparent: Africans rightly place great importance on defining projects and strategies – and then allowing us to contribute to them. If we jointly finance a processing plant or a tractor, it has enormous potential for both sides. A modern agricultural sector is the most efficient way to fight poverty and secure food provision – and it's also a profitable business opportunity. It is no coincidence that the African Development Bank plans on investing approximately 24 billion US-Dollar in agriculture and agribusiness by 2025.
Critics say: AGRA isn’t African at all, because the money comes from American foundations.
Well then, the question remains: Do we want to have a philosophical discussion or move forward pragmatically? African farmers are suffering from insufficient foreign investors willing to invest their capital there. The African people mostly have to dig into their own resources to make this leap. The quickest way to accomplish that is with the help of development funds or foundation endowments. Key is, however, that Africans ultimately decide. And at AGRA, the majority of decision-makers are Africans.
Do you foresee any risk that smallholders may be marginalised in this entrepreneurial approach?
Well, here in Germany nobody could be involved in land grabbing in Africa – even just theoretically. As I said, we have no such companies. Especially German medium-sized companies take great care that they adhere to sensible, social and environmental standards. I think we need large, professionally operating companies. I seriously doubt that the concept of solely promoting smallholders is the instrument of choice. We are facing such an enormous challenge: Africa's population is expected to double by 2050, and food demand will likely increase by 70 per cent over this period – and 20 million new jobs a year will have to be created in Africa. That’s more than what needs to be created throughout the entire European Union. We can only accomplish that if all possibilities are exhausted at the same time. Look at the population growth projection. We probably won’t even succeed if the G20 countries combine all their efforts. Therefore, no stone should be left unturned. Smallholders are supposed to be supported with development funds, and larger units must emerge that can afford innovation. I know, for example, that Airbus is moving around a lot in terms of weather forecasts. Should that be denied to the Africans, just because they are expected to continue to work in very small units?
'Investments are to be promoted'
After all, those are recommendations that our own agricultural sector doesn’t adhere to: the trend towards larger entities, the use of fertiliser and hybrid seeds ...
I mean, in Africa, that should be implemented as well. In light of the rapidly growing population, more and more production is needed. For me, the main goal is for the least amount of people in Africa as possible to suffer from starvation. If this necessitates the use of chemical products, we have to make sure that people are trained to use them properly and that it does not harm the environment. It’s hard to tell people that they can’t eat because we are reluctant to use more productive seeds for environmental reasons.
There are media reports about a fund that the Federal Government wants to set up for Africa. What's that all about?
Chancellor Angela Merkel announced a few weeks ago at the G20 Africa Summit of the German-African Business Association that there should be a Development and Investment Fund for a total of one billion euros. The idea behind that is to promote investment projects by German medium-sized enterprises that are developmentally meaningful and create jobs, especially if they can’t stand on their own legs yet because a bank is too cautious or a medium-sized company fears losing everything, if it is expropriated or if there are political difficulties.
Is this a type of export credit guarantee similar to a Hermes cover?
No, it will consist of several different components. But this is still being discussed. It includes guarantees, but also smaller loans. The billion euros are earmarked until the end of the legislative period.
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A contribution by Prof. Dr. Anna-Katharina Hornidge
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Four interviews kick off the relaunch under the new name „Food4Transformation“, asking the same questions from different perspectives. "Women and young people need access to land. And they need financial support to cultivate this land." - says Kolyang Palebele, President of the Pan African Farmers Organisation (PAFO).
Four interviews kick off the relaunch under the new name „Food4Transformation“, asking the same questions from different perspectives. Dr Julia Köhn, Chair of the German AgriFood Society, points out in the interview: Only if innovation and transformation are profitable in the medium term can they close the food gap in the long term.
The Federal Ministry for Economic Cooperation and Development (BMZ) has released a video on the transformation of agricultural and food systems. In the video, Federal Minister Svenja Schulze also speaks about the urgent need to combat global hunger and contribute to resilient agricultural and food systems.
Four interviews kick off the relaunch under the new name „Food4Transformation“, asking the same questions from different perspectives. Dirk Meyer, Federal Ministry for Economic Cooperation and Development, thinks: less individual solutions are needed, but more systemic approaches. Because in addition to the goals for food security, the issues of climate and biodiversity must also be taken into account.
Agrivoltaics is a concept that combines photovoltaic electricity generation and agricultural production, providing the opportunity for a more efficient land use and contributing overall to the integration of food, energy and water systems. This can be particularly interesting for countries in the Global South, where rural electrification rates are often low and food security needs to be improved.
A Contribution by the Federal Ministry for Economic Cooperation and Development
At the network meeting "Partners for change - Transformation to a food secure, resilient and sustainable future", almost 250 participants from over 20 countries came together to exchange experiences and ideas on the transformation of agricultural and food systems. The final product, joint recommendations to transform agricultural and food systems, can now be read online.
Halfway through the 2030 Agenda, the BMZ invited participants to a network meeting entitled "Partners for change - Transformation to a food secure, resilient and sustainable future". Experts from around the world developed recommendations in a consultation process and then consolidated them in Berlin. A site visit.
The world is currently experiencing a historic food crisis. High fertiliser prices are part of the problem. In addition to the necessary short-term aid measures, the crisis ought to be made use of to develop and implement longer-term fertiliser strategies for sustainable, in particular smallholder increases in production in the Global South.
Given the urgency of transforming agricultural and food systems, GIZ India's Food Systems and Agroecology Working Group is exploring the potential of agroecology in collaboration with Think20 partners. A policy brief has now been published.
Every second, worldwide, we lose valuable and healthy soil with the size of four football fields. This was only one of the many facts being presented to a wide audience in Bonn and worldwide via livestream at the World Desertification and Drought Day on 17th June 2024. This was the 30th anniversary of the United Nations Convention on Combatting Desertification (UNCCD), which was celebrated at the Bundeskunsthalle in Bonn.
During the Women Leadership Programme in May 2024, around 20 women from African countries and Germany met again for a one-week workshop in Bavaria, Germany to become fit for leadership in their organisations. One topic that concerns the women across countries is climate change, but also violence against women and their discrimination in agriculture.
Africa’s largest youth generation has the potential to transform agriculture sustainably. Young entrepreneurs like Febelsa in Mozambique are building agricultural businesses that fuel local growth.
As a passionate social scientist and entrepreneur from Malawi, Ngabaghila Chatata knows that she can overcome any challenge. Her story stands out in a country faced with high unemployment, particularly in its rural areas. As the managing director of Thanthwe Farms, she has set out to inspire the next generation of young agripreneurs – proving that successful business starts with the right mindset, not only capital.
The guiding orientation framework developed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) summarizes the requirements for the transformation of agriculture and food systems – and identifies principles and approaches for transformative change.
From January 9 to 11, 2025, heads of state and government of the African Union met in Kampala, Uganda. With a clear vision and concrete measures, the Kampala Agenda aims to make the continent's agricultural and food systems climate-resilient, fair and future-proof by 2035.
A Conversation with Carmen Torres Ledezma & Oluwaseyi Kehinde-Peters
Female Leadership is vital to the transformation of agriculture and food systems. Therefore, it is so important to advance gender-sensitive approaches to increase the presence of women in leadership positions in agricultural production and to make these systems more equitable, sustainable and resilient.
In March, delegations from nine partner countries met in Berlin at the Partner Conference Scaling Access to Finance for Agripreneurs. Alongside AUDA-NEPAD, IFAD, BMZ, GIZ, and others, around 100 participants worked on practical solutions to support financial inclusion in agricultural transformation and hand over their conclusions to the AU's Kampala CAADP process.
At the Nutrition for Growth 2025 Summit in Paris, Team Europe, comprising the European Commission and Member States, put nutrition at the centre of international politics as a driver for resilience, equality and human rights. There is a consensus on the results of the summit: to turn commitments into concrete progress through strong partnerships and innovative approaches.
The global fight against malnutrition needs more than just words - as demonstrated by the Nutrition for Growth summit in Paris. With comprehensive commitments and clear receivables, a signal has been sent: Healthy nutrition must become a global priority. But what do participants from countries such as Yemen and Timor Leste think?
In May, this year's "Partners for Change – SOILutions for a Food Secure, Resilient, and Sustainable Future" conference took place. Kah Walla, Moderator of the Conference and Director of Strategies!, summarises the discussions and declares that healthy soils are not just the foundation of agriculture, but the cornerstone of a resilient, equitable, and climate-smart future.
Two new podcast formats from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) bring stories from on-the-ground project work to life: "Over to you!" from Malawi and "Voices of Change – Beneficiary Story Book" from Zambia. At the heart of these podcasts are the people behind the changes toward sustainable food security.
How can agriculture modernise Africa? And does the road to the cities really lead out of poverty? Dr. Reiner Klingholz from the Berlin Institute for Population and Development in conversation with Jan Rübel .
A contribution by the Bill & Melinda Gates Foundation
Africa’s population is young and ready to take its destiny into its own hands. Agriculture offers amazing opportunities in this regard. The Bill & Melinda Gates Foundation wants to support the next generation in this way.
Insect farming is economical and environmentally sustainable, they are high in protein and they live on agricultural waste. Marwa Abdel Hamid Shumo thinks: They are the best weapon to combat hunger
What happens when young people leave the rural areas? How can the region achieve what is referred to as the demographic bonus – and how can it reap the benefits of the demographic dividend? A look at demography shows the following: What is most important is promoting women’s rights and education.
A contribution by Dr. Karin Gaesing and Prof. Dr. Frank Bliss (INEF)
Especially in densely populated areas, land pressure leads to overexploitation of available land and a lack of conservation measures. The West African country of Benin, with heavily depleted soils in many places, is no exception.
The world’s population keeps on growing; with this rise comes an increased need for food as well as productive employment opportunities. Offering young people in rural areas better employment prospects is one of the objectives of the sector project. The young population is the key to a modern and efficient agricultural economy.
Cities play an important role in the transformation of food systems. But what exactly are the potentials and challenges? A three-way discussion between Ruth Okowa (Gain), Delphine Larrousse (World Vegetable Center) and Conrad Graf von Hoyos (GIZ).
African countries still face huge gender gaps in terms of access to work and capital. What are the consequences of Corona for women in Africa? Jan Rübel interviewed Léa Rouanet on lockdowns and gender-based violence. The economist works at the Africa Gender Innovation Lab of the World Bank.
Supporting groups of smallholding women substantially contributes to strengthen rural operations economically. The organisation and associated group activities can help to reduce extreme poverty and improve the food situation.
Besides the well known impacts of Covid19 lockdowns for the adult population, the associated school closures led to 90 percent of the world’s children with no access to schools. However, school meals are in often the only daily meal for children. Without access to this safety net, issues like hunger, poverty and malnutrition are exacerbated for hundreds of millions of children.
The majority of producers in developing countries are women. Although they contribute significantly to the food security of their families, they remain chronically disadvantaged in male-dominated agriculture in terms of access to land, credit, technology and education.
A contribution by Nadine Babatounde and Anne Floquet (MISEREOR)
To prevent malnutrition among young children and strengthen the role of women in their communities, Misereor, together with the local non-governmental organisation CEBEDES, is implementing a programme on integrated home gardens in Benin - a series of pictures.
A contribution by Dr. Kathleen Mar and Dr. Nicole de Paula
Against the backdrop of the COVID-19 pandemic, health is receiving unprecedented public and political attention. Yet the fact that climate change is also affecting the environmental and social determinants of health in a profound and far-reaching way deserves further recognition.
Three female entrepreneurs from Mozambique, Sri Lanka and Uganda tell their stories about starting organic businesses from scratch, now selling Baobab Oil, Gotukola powder and Shea butter in international markets. And they explain why their business is almost 100 percent female.
When women have control over the resources of a household and manage the income, it usually leads to a more balanced and healthier diet for the family. But often the decision-making power lies with the men. How can this gender inequality be addressed? The GIZ global project Food Security and Resilience provides insights into project work on gender-transformative approaches finances by the Federal Ministry for Economic Cooperation and Development (BMZ).
Africa’s drylands seem to be predestined for generating solar and wind power – especially given the current hype over green hydrogen. However, pastoral communities are often put at a disadvantage in this respect. Our author describes the arising conflicts and what successful coexistence of green energy projects and the communities could look like.
Rose Okello is a Matoke farmer and single mother living in a village near Mbarara, a town in southern Uganda. To ensure that she can pay for her family's food, her children's school fees and other expenses on time, Rose uses various financial services. Her story portrays hurdles but also hope for women in agribusiness.
A conversation with Caroline Kayanja, Dr. Eileen Nchanji, & Theresa Herbold
A transformation of agricultural and food systems is not possible without overcoming structural gender inequalities. In this discussion, Caroline Kayanja (UCOBAC), Dr Eileen Nchanji (CIAT) and Theresa Herbold (Ministry of Development) reflect on the key challenges and solutions – from land access and representation to women-led collectives and innovative technologies.
The rural population and vulnerable groups should be involved in the implementation of the African Union's Kampala Declaration on the transformation of agricultural and food systems. This is the demand of sociologist Lawani Arouna, Vice President of the Regional umbrella organisation of farmers' associations in West Africa (ROPPA).
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