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Small Farms, big money

2018-01-17

Agnes Kalibata

Africas economy can only grow sustainably, if also small-scale agriculture is seen as opportunity.

Ich bin ein Alternativtext — Dr. Agnes Kalibata is the president of the Alliance for a Green Revolution in Africa (AGRA)

By Agnes Kalibata

As President of AGRA, Dr. Agnes Kalibata leads the organization’s efforts with public and private partners to ensure a food secure and prosperous Africa through rapid, sustainable agricultural growth, improving the productivity and livelihoods of millions of smallholder farmers. Prior to joining AGRA in September 2014, Dr. Kalibata was Rwanda’s Minister of Agriculture and Animal Resources (MINAGRI).

All contributions

Beatrice Nkatha, an entrepreneurial 38-year-old from Kenya, embodies the hope and promise of African agriculture and its role in sustainably transforming its economy. In 2009, Ms. Nkatha converted her local tailoring shop - where she earned a basic living mending clothes for farmers and their families - into an agro-shop, stocking high quality seeds, fertilizer and other farm inputs. Over time, as local yields increased, she started buying produce from the farmers and selling them on, in bulk, to traders in the bigger towns. This significantly increased not only her personal fortune, but also those of hundreds of smallholder farmers she serves in Mukothima, some 260km Northeast of Nairobi in the foothills of Mt. Kenya.

Like every astute business person - which is what she has proven to be - Ms. Nkatha identified a new opportunity in sorghum farming and marketing, and seized it. The opportunity came in the form of a spike in demand for the commodity. This followed a decision by East African Breweries, a Nairobi-based regional brewer (majority owned by Diageo), to manufacture local beer using sorghum. They needed lots of sorghum.

As a start, Ms. Nkatha rebranded her business, becoming ‘Sorghum Pioneer Agencies’. She positioned herself as the sole sorghum supplier to the brewer in her area. Over the years, she has steadily grown the number of farmers switching to growing sorghum. In fact, sorghum does better in this area than many other crops, being arid to semi-arid, a generally challenging growing environment. Currently, Ms. Nkatha works with 14,000 farmers whose sorghum she aggregates and sells to the brewer. These farmers are fully equipped with the requisite knowledge about the strain of sorghum to plant and techniques to maximize yields on their small plots. Ms. Nkatha sells them seeds and fertilizer, often on credit, rents them the use of a tractor and thresher, and even advances them loans to pay school fees.

Sorghum farming has, therefore, become a business, driving many new jobs and improving the living conditions of many farmer households. These farmers are now guaranteed a steady and reliable income which has significantly improved their wellbeing – they can afford better meals, pay school fees for their children, build better and permanent houses, and obtain better medical care.

Ms. Nkatha’s story is just one of many across the continent where agriculture is increasingly growing into a business. This is not limited to Kenya or to value chains related to breweries. There are similar examples in rice, rubber, maize, soya, and many other commodities through the pioneering work of many partners, including the German development cooperation through its agencies GIZ and KfW.

These success cases point to the willingness and readiness of African farmers to embrace farming as a business, as long as they are assured of the necessary support through access to improved inputs, availability of modern technologies and, more importantly, access to a structured market. They are the largest private sector group in Africa, millions strong, making calculations and plans based on their own experience and learning – and on the available opportunities and resources.

Ultimately, Africa’s sustainable economic growth will only be realized through deliberate actions that positively include these farmers in the economy. The multiplier effects of an agricultural transformation are massive. When farmers start to do better, they have further unique qualities. They desist from becoming part of the rush to cities – where new arrivals mostly find themselves at the bottom of a very tough economic ladder. Instead, the farmers enliven the rural economy, drawing services and goods into new areas, creating thriving market towns where previously the monetized economy was virtually non-existent.

Almost inevitably, new jobs appear in the flourishing rural sector. Notably, most of them are not on the farms as small market towns will need shop staff and cycle repair technicians; they will need agronomists and engineers who can supervise the construction of irrigation systems; and people will be needed to support food packaging, transport, distribution and marketing.

Through a survey of 10,000 rural sub-Saharan Africa youth, the Charter revealed that more than half of them are not planning to migrate to urban areas

This is one of the key messages of the Berlin Charter, which I was honoured to contribute to, along with several global experts and stakeholders, at the request of the German Government. Through a survey of 10,000 rural sub-Saharan Africa youth, the Charter revealed that more than half of them are not planning to migrate to urban areas, but want to build their future lives in the rural area, depending on the availability of jobs, education and infrastructure.

Our work is, therefore, cut out for us. At AGRA, we are working with multiple partners to deliver a uniquely African green revolution that goes beyond achieving food security, to delivering real and sustainable economic transformation for our people. This, we believe, will be achieved when smallholder farmers move from farming as struggle to survive to farming as thriving business. As part of our commitment, we aim to work with public and private partners, directly increasing the incomes and food security of 9 million farm households and, indirectly through our catalytic work, that of another 21 million farm households, all in the next 5 years.

Our strategy focuses on an approach that puts government at the center, to enable and champion private-sector-led agricultural growth; creates a strong, well-aligned ecosystem of actors; and supports scale solutions that ultimately deliver inclusive agricultural transformation.

We are convinced that this is the right approach. We have seen it work. Over the last decade, for example, we have worked with African governments, research centers and other partners to invest over 200 million dollars of private capital in the development of the seed business in Africa. As a result, close to 100 private local seed companies have been established which have produced and sold close to 600,000 metric tons of seed to an estimated 15 million farmers, with significant impact on yields and income.

Indeed, success cases like Ms. Nkatha’s in Kenya and that of the seed companies affirm how, not only individuals, but also countries can grow through smallholder agriculture - and the wider research bears it out. According to the International Food Policy Research Institute (IFPRI), Kenya and other countries such as Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, and Rwanda that are making big investments in agriculture, have seen productivity on existing farmlands rise by up to 6% a year, spurring an average annual GDP increase of more than 4%. Despite this success being threatened by the emergency of climate change and frequent droughts, there is no denying what we have seen, learnt, or been able to do. If anything, these emerging threats strengthen our resolve to act as evidence shows that poverty rates are decreasing, food security is improving, and new jobs are opening up in these countries.

This is why, throughout history, and throughout the world, regions have built their economic success on the back of a successful smallholder agricultural sector. Africa must do the same: and it must do so without wasting time.

The special initiative recognizes that a world without hunger is possible, and that Africa Can Feed Itself

Advancing this vision, nonetheless, requires several critical investments to work together, with strong leadership in the public and in the private sectors being paramount. The diversity of the roles played by governments, private sector and other organizations is, therefore, unmistakable. Efforts by all our partners will go a long way in enabling us achieve our targets. Germany is at the forefront of this effort throughout the region, with its leadership and flagship programs by BMZ, GIZ, KfW, and many other private sector and civil society actors, and we must continue to look at how we build on these together. As we do, we have no doubt that we can achieve the vision of Germany’s One World – No Hunger special initiative which recognizes that a world without hunger is possible, and that Africa Can Feed Itself.

We cannot shrink from the challenge because it is complex

All evidence shows that this is achievable – and we know how to support the changes required to get there. We cannot shrink from the challenge because it is complex. We must be steadfast and strategic in the planning and execution of the changes across the continent, without losing sight of all the local challenges, opportunities and differences: there are no formulaic solutions, and no short cuts. We can draw hope and reassurance from the success stories to date, but must be prepared to work with commitment to make agriculture work at scale for both the small farmers and the wider economy.

Kenya

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Podcast: Fighting world hunger together

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A Contribution by Claudia Jordan (GIZ)

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A Contribution by Puneet Bansal

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Interview with Sebastian Lesch (BMZ)

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Interview with Arif Husain (WFP)

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The price isn’t everything

By Bettina Rühl

In Togo’s capital, Lomé, home-grown rice costs almost twice as much as the imported product from Thailand. Yet there are good reasons for preferring the local product

The Big Bang is possible

Interview with Joachim von Braun

Happy youngsters in rural areas, green development and the connection to the digital age – professor Joachim von Braun believes in this future sceneraio for Africa. For three decades the agricultural scienties has been researching how politics can create prosperty on the continent.

Ebay Against Hunger - How an App Supports Crop Sale of Rural Small Holders in Zambia

Small holders around the world are often forced to sell their harvests below market value due to a lack of market and pricing information. A new app by the UN World Food Programme (WFP) is going to change this.

A project of WFP

Story: In Blocked Chains We Trust

A contribution by Solomon King Benge

It is 2080. We are on a farm somewhere in Africa. Everything is digital. The blockchain is an omnipotent point of reference, and the farm is flourishing. But then, everything goes wrong. A dystopian short story, written exclusively for SEWOH.

Small fish with a big potential

A contribution by Paul van Zwieten

African inland fisheries are increasingly reliant on the capture of small fish species that are sundried and traded over long distances. They make an important contribution in alleviating “hidden hunger”: consumed whole, small fish are an important source of micronutrients. Only that, unfortunately, politicians haven’t yet realised this.

Quinoa could have a huge potential in Central Asia, where the Aral Sea Basin has been especially hard-hit by salinisation.

Supermarket Scorecard on Human Rights

A contribution by Dr. Franziska Humbert (Oxfam)

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Do we have to dare a new food system?

A contribution by Dr. Felix zu Löwenstein (BÖLW)

Lack of seasonal workers and virus explosion in slaughterhouses, rising vegetable prices, climate crisis – all this demonstrates: Our food system is highly productive and (at least for the rich inhabitants of planet earth) guarantees an unprecedented rich and steady food supply - but it is not resilient.

Visions in agriculture

Video by Frank Schultze and Jan Rübel

At the beginning of December 2018, AGRA's board of directors met in Berlin. The "Alliance for a Green Revolution in Africa" panel discussed the next steps in their policy of modernizing agriculture. How to go on in the next ten years? One question - many answers from experts.

Bitter fruit

A contribution by Frank Brunner

Why aren’t bars of chocolate made where cocoa is grown? Author Frank Brunner analyses the industry’s fragile value chain from the plantation to the supermarket

"Soy can be made into more than just flour"

A report by Johanna Steinkühler (GIZ)

The soybean is a natural crop that can be used to make a lot of food. So, Tata Bi started a small processing business first on her own, then with a few other women, which provides the women with an additional source of income year-round besides selling the soybeans.

Global responsibility: Tackling hunger is the only way forward

A contribution by Lisa Hücking (WHH)

Chancellor Merkel has begun an ambitious European political programme: Striving for compromise in budget negotiations, an orderly Brexit as well as an appropriate response to the corona crisis. Unfortunately, one of her positions that she previously held is nowhere to be found: Africa's prosperity is in the interest of Europe.

Africa's face of agriculture is female

A contribution by Beatrice Gakuba (AWAN-AFRIKA)

Africa has a huge opportunity to make agriculture its economic driver. However, the potential for this is far from being made exhaustive use of, one reason being that women face considerable difficulties in their economic activities. The organisation AWAN Afrika seeks to change this state of affairs.

News from the starting block: Changeover

A contribution by Michael Brüntrup (DIE)

The region of Sub-Saharan Africa is on the decisive verge of a great development boost in farming: it could skip entire generations of technological development. But how? About possible roles and potentials of digital services.

“They said: You can do it”

A contribution by Bread for the World

As President of the IABM cooperative in Muhanga, Alphonsine Mukankusi is not simply focused on the figures. She has learned how to deal with people and how to take on responsibility. At the same time, her work helps her to come to terms with the past

Read more “They said: You can do it”

No rainforest for our consumption

A contribution by Jenny Walther-Thoß (WWF)

In the tropics rainforests are still being felled for the production of palm oil, meat and furniture. It is high time to act. Proposals are on the table.

How much do we actually waste, Mr. McFeely?

An interview with Peter McFeely (WWF)

The WWF has published a sensational study on food waste. The focus: farm-stage food waste. Peter McFeely, Global head of communications and strategic planning at WWF, explains what needs to be done.

Sustainable Artisanal Fisheries and Aquaculture in Rural Areas

Fish is important for combating malnutrition and undernourishment. But it is not only notable for its nutritional value, but also secures the livelihoods and employment for 600 million people worldwide.

A Project of GIZ

Nine Harvests Left until 2030: How Will the BMZ Organise Itself in the Future?

An Interview with Dirk Schattschneider (BMZ)

"One World no Hunger" (SEWOH) becomes one of the five core themes of the BMZ. Dirk Schattschneider, SEWOH Commissioner about previous approaches, future areas of action, and the political will to end hunger.

Côte d’Ivoire: The Future Starts With Food

A Contribution by GIZ

How nutrition trainer Edwige helps cocoa farmers in Côte d’Ivoire to prepare for a healthier future.

Five tips to reduce food waste

A listicle against food waste

Whether it's banana bread made from brown bananas, conscious shopping plans or foodsharing, we give you five tips on how to reduce your everyday food waste.

The Case for Fair Fashion

A Contribution by Jan Rübel

On the podcast ‘From the Field to the Shelf’, Marie Nasemann calls for new attempts to promote fair fashion. An evening about burnt returns, filterless washing machines and a lot of room for improvement.

Knowledge about spice production

A listicle regarding spice production

The global trade in spices currently has a volume of over 10 billion euros. But at what price do these spices refine our Christmas cuisine? On closer inspection, aspects of the value chain leave a bitter taste.

New legal initiatives towards deforestation-free supply chains as a game changer

A Contribution by Gerhard Langenberger

Regarding deforestation free supply chains, there are challenges and opportunities for smallholder farmers as well as for international forest governance. Also, responsibilities for companies and potential incentives for manufacturers to use materials from fair trade and sustainable sources need to be explored. But what does “deforestation-free” actually mean?

Achieving more together – New forms of cooperation for sustainability in the cotton sector

A Contribution by Saskia Widenhorn

Saskia Widenhorn, Head of the Cotton Component in Cameroon and the Sub-Saharan Cotton Initiative at GIZ, reports on the Bremer Cotton Week, which brought together international industry experts. The agenda included supply chain transparency, sustainability and new forms of cooperation between the private sector and partner countries.

David versus Goliath: Consequences of mainstream agricultural export commodities and niche products

An Artikel by the Initiative for Sustainable Agricultural Supply Chains (INA)

A study published by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) examines the differences between globally traded agricultural commodities and domestic niche products in terms of economic, environmental and social impact on the region of origin. The results provide new evidence to make supply chains more sustainable.

Côte d’Ivoire: Sweet Temptation without a Bitter Taste

A Story by GIZ

Until Easter 2022, GIZ publishes a new episode every fortnight introducing people who are committed to fair and sustainable cocoa in Côte d'Ivoire and Germany.

Fair Trade and Climate Justice: Everything is Conntected

A Contribution of the 'Initiative for Sustainable Agricultural Supply Chains' (INA)

Fair Trade organisations and the Initiative for Sustainable Agricultural Supply Chains (INA) have launched the #ichwillfair campaign during COP26 to highlight the link between global supply chains and climate change.

Do import restrictions really benefit the local poor in West Africa?

A contribution by Isabel Knößlsdorfer

Protectionist policies like tariffs supposedly protect domestic producers if they cannot compete with cheaper imported products. Some African countries have therefore opted to impose such import restrictions for a number of products. For the case of chicken imports in Ghana, this study analyses whether restrictions would lead to overall positive or negative welfare effects among households.

Sang'alo Institute invests in farming of sunflower crop

A contribution by James Wanzala

Kenya is a large importer of vetable oils mainly from Indonesia and Malaysia - amongst them sunflower oil. Due to the Russian war of aggression against Ukraine, there were supply bottlenecks and food shortages, leading to less affordable vegetable oils in Kenya. As a response to the lack of supply, the Sanga'alo Institute of Science and Technology, took that impulse, teamed up with the GIZ and established regional cultivation and refinement of sunflowers.

From field to fan shop: how to increase supply

A contribution by Jan Rübel

Organic cotton is extremely popular – but farmers still find it difficult to change their conventional cultivation methods. A new project addresses this dilemma: Bundesliga football teams in Germany are promoting the switch to organic cotton in India. And thereby setting an example.

The Agri-Food Map: An interactive map to explore sustainable agri-food systems

A Contribution by GIZ

The complex interrelationships of the sustainable transformation of agricultural and food systems are not always easy to understand - the Agri-Food Map, an interactive online app, makes the comprehensive relations accessible by providing a wide range of comprehensibly prepared information.

Strengthening the market linkages of smallholders in the face of global supply shocks

A Contribution by Niladri Sekhar Bagchi

The consequences of the Russian invasion of Ukraine have enabled many countries to open up new export markets for their agricultural goods. However, smallholder farms have been largely left out. Drawing on his experience in India, our author gives a brief overview of how this can be changed.

The Principle of Sharing

A contribution by gebana

gebana, a Swiss fair trade company, follows the principle of "sharing" with its corporate philosophy: farming families in the Global South participate directly in the sales of their online shop. Caroline Schaar, Marketing at gebana, explains the company's approach.

Nature conservation around the world

A Contribution by WWF

From measures to promote biodiversity in Germany to more sustainable cocoa cultivation methods in Ecuador: WWF works at many different levels. At the Green Week, it will be demonstrated just how multifaceted nature conservation work is and what role each individual's decision plays.

From Coexistence to Collaboration

A Contribution by Initiative für nachhaltige Agrarlieferketten (INA)

The demand for sustainable products and supply chains is constantly increasing. DIASCA is an alliance that works on interoperability of digital solutions in agricultural supply chains through the development of open standards for forest monitoring, farm income and traceability.

The Idea of Coffee entirely made by Women

A Conversation with Allan Mubiru

Allan Mubiru was standing in front of a shelf in Kigali, Rwanda, and discovered a local type of coffee. He took it, tasted it and was thrilled. A story about a grocery shopping trip that became the beginning of a successful business idea.

From the perennial to the catwalk – banana silk as an alternative

A Contribution by Paul Kadjo

The textile industry contributes significantly to environmental pollution as it produces over 100 billion garments every year, resulting in huge CO2 emissions and water consumption. Fashion designer Paul Kadjo uses banana silk as an environmentally friendly alternative to make textile production more environmentally conscious and socially just.

The human finca

Interview with Marvin Antonio Garcia Otero

In Eastern El Salvador, campesinos are cultivating a self-image to encourage rural youth to remain in rural areas. With help from Caritas, they have adjusted the cultivation methods to their soils and traditions - Marvin Antonio Garcia Otero,the deputy director of Caritas of the Diocese of San Miguel believes this is the best way to prevent rural exodus and criminality.

Answers from the youth: "Leave or stay? That depends on it!"

GIZ study; conducted by Geopoll

Does Africa's youth want to live in the city or in the country? Which career path seems particularly attractive? And how optimistic are the young people about the future? Young adults from rural areas answered these questions by SMS.

"Agriculture can become a job engine"

Interview with Reiner Klingholz

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 .

Enough of being poor

By Marcellin Boguy

In western Africa a new middle class is emerging. Their consumer behaviour is determining the demand for products – home-produced and imported goods, on the internet or at the village market. The people of Ivory Coast in particular are looking to the future with optimism.

New campaign for women: "Poverty is sexist"

Interview with Stephan Exo-Kreischer

This is a benchmark for everybody: More rights for women are a very influencing solution in the struggle against extreme poverty and hunger worldwide, says Stephan Exo-Kreischer, Director of ONE Germany. The organisation specialises in political campaigning as a lever for sustainable change.

More than just a seat at the table

A contribution by Welthungerhilfe

Africa is home to the world’s youngest and fastest growing population. For many young people, agriculture could offer a job perspective. But to improve the living conditions and job prospects of young people in rural areas, political reforms and investments are desperately needed, as these people will be at the centre of agriculture and agricultural development in the future.

An opportunity for the continent

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.

From start to finish: a vision of interconnectivity

A contribution by Tanja Reith

At the moment, the agricultural industries of African countries exist in relative isolation. Imagine peasant farmers digitally connected to the value chains of the global food industry. How could this happen? A guidebook.

The Life of Their Dreams - What Children Want

Interview with Gnininkaboka Dabiré and Innocent Somé

Later on you want to become a farmer yourself, or would you prefer to take up another profession? Two young people from Burkina-Faso talked to representatives of the Dreyer Foundation about their parents' farms, the profession of farmer and their own plans for the future.

An investment in Africa's future

A contritbution by Essa Chanie Mussa (University of Gondar)

Rural youth need viable livelihood opportunities to escape out of poverty and realize their aspirations. How could they be helped to fully unleash their potential? This is an aloud call that needs novel strategies among governments, policy makers, and international development partners and donors.

"Extreme is the new normal"

A report by Alexander Müller and Jes Weigelt (TMG)

As the climate changes, the population of Africa is growing and fertile land and jobs are becoming scarcer. New ways are currently leading to urbanisation of agriculture and a new mid-sized sector in the countryside

How Can We Feed The World in Times of Climate Change?

A Contribution by Jan Grossarth

Genetically modified bacteria become edible proteins, cows graze on pasture, and no waste is produced in an industrial circular economy. Journalist Jan Grossarth sees a silver lining for the future of world nutrition

Youth Employment in Rural Areas

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.

A project of GIZ

Digitalization: The Driving Force in the Future of Agriculture?

A Contribution by GIZ

At the ICTforAg conference in March 2022, the digital agriculture community exchanged on the challenges and opportunities associated with the next green revolution.

‘Invite yourself’ – Farmers organisations as key stakeholders of food systems

A Contribution by Andreas-Hermes-Akademie

The Andreas Hermes Academy (AHA) discusses the transformation of food systems with 30 representatives of farmers organisations.

What does it take to truly shift the paradigm on food systems?

An Interview by GDPRD

Why are short- and long-term responses important to address current and future global crises? Sebastian Lesch, Head of the Agriculture Division at the German Federal Ministry for Economic Cooperation and Development (BMZ), provides answers to these and other questions in an interview with the Global Donor Platform for Rural Development (GDPRD) and explains how much Germany welcomes all donors pulling together and acting in concert.

Sustainable, feminist and socially just: The new Africa strategy of the BMZ

A contribution by Prof. Dr. Anna-Katharina Hornidge

In the video format "#99SecondsWith" of the German Institute of Development and Sustainability (IDOS), Prof. Dr Anna - Katharina Hornidge talks about the new Africa-Strategy of the Federal Ministry for Economic Cooperation and Development (BMZ).

How a Nigerian fintech wants to secure 1 billion US dollars for farms

An Interview with Blessing Mene

Small farmers often have a hard time getting financing. An app in Nigeria wants to change that: Founder Blessing Mene about what his app offers - and about the opportunities and limitations of agricultural financing.

Agricultural Financing – from a broader Perspective

A Contribution by GIZ

In Sub-Saharan Africa, not all financial institutions (FIs) have access to knowledge about how to implement processes to enhance rural financial inclusion. The pan-African Community of Practice (CoP) plays a pivotal role in supporting these institutions along this transformative journey.

Agriculture is more than Culture or Tradition

A Contribution by Simeon Kambalame

How can agriculture engage more young people in rural areas? Advocacy and education campaigns can play an important role here. Simeon Kambalame, Timveni Child and Youth Media Organisation, has launched such a campaign in Malawi.

Sowing change

A Contribution by Brot für die Welt

Roughly 800 million people suffer from hunger worldwide. Change is needed - for people and for the environment. Brot für die Welt reports on the starting points offered by everyone's ecological footprint and handprint.

Shu Wen Ng, the Clear-Sighted

An Interview with Shu Wen Ng

Shu Wen Ng is a health economist. She knows what is best suited to go on a plate. But how can this be achieved on a mass scale in countries with lower incomes? "The solutions to gett there already exist," she says, "but what is often missing is courageous leadership to implement them."

African countries decide to tackle soil health challenges

A Contribution by GIZ

At the Africa Fertilizer and Soil Health Summit (AFSH), organized by the African Union (AU) and the Government of Kenya in May, the Nairobi Declaration was adopted. It aims to triple domestic production of organic and inorganic fertilizers by 2034 and to improve access and affordability for smallholder farmers. GIZ reviews the Summit.

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Small Farms, big money

By Agnes Kalibata

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