Is Importing Pizza yesterday’s news?
How can we boost Africa’s food systems and exports?
Editor’s Note
In March 2019, one of the most absurd headlines hit a couple of news platforms. Apparently, Nigerians were importing pizza; and having it delivered to them within the country through airline travel. The story was often couched in a language of incredulity, especially, when built around the reported statements of the then minister of agriculture Audu Ogbeh.
Years removed from that occurrence, I continue to be amazed by the idea of “importing pizza” and consider it a great jump-off point to consider the issue of exportation and balance of trade. Why am I not concerned instead about importation? Well, because I simply believe that the larger conundrum for most nations in Africa today is not to cut down on importation per se, but to improve upon productivity, value addition, and the fundamentals that allow for efficient cross-border trade and exportation.
These being my reflections as I went into drafting the new edition of the newsletter, I consider the subject of sustainable agriculture in Africa, talking to experts and sharing some of my own personal learnings on strengthening local supply chains, improving exports, and ultimately supporting our farmers and the larger ecosystem in ways that they are able to support more generations to come.
It was my great pleasure to interview our special guest for this edition, Ndidi Okonkwo Nwuneli, an expert on social innovation and agriculture in Africa, who shared her insights on how to transform the food systems in Africa for the better.
This newsletter is packed with valuable information and practical tips that you don’t want to miss. Enjoy reading.
- Kamaldeen Raji, MD, AFEX Fair Trade, Nigeria.
Spotlight
Trade is a good thing; it helps countries to diversify the food available for consumption and generate revenue for economic growth. However, relying on the importation of expensive food from the global market fuels domestic inflation.
For instance, did you know that Nigeria has the potential to generate US$40 billion every year from exporting its agricultural products? Nigeria has a huge market opportunity for sesame seeds and cocoa beans, which could bring in an extra US$170 million and US$425 million respectively to the top ten markets. (NEPC, 2021). However, we rely heavily on importing food and agricultural commodities, spending billions of naira every year.
These surprising statistics show that developing the local supply chain is critical. This can be done by ensuring that the goods produced in the country are reliable, durable, and affordable for the average consumer. By doing so, we can:
Reduce our dependence on foreign food and save money for other development needs.
Improve our food security and nutrition by having more access to fresh and healthy food.
Boost our export competitiveness and earn more foreign exchange by producing high-quality and value-added products.
Protect our environment and natural resources by using eco-friendly farming practices and technologies.
On the hot seat, this month is the incomparable Ndidi Okonkwo Nwuneli. She is a seasoned entrepreneur and an expert on social innovation, African agriculture, and nutrition, entrepreneurship, and youth development. For the past 15 years, she has focused exclusively on transforming the African agriculture and nutrition landscape, partnering with a range of private and public sector organizations.
She talks to us about what it takes to invest in sustainable agriculture:
You have been working in the agriculture sector for a while now, how have you seen the conversation on sustainability change from when you started till now?
There is a greater recognition of the critical role that agriculture and food ecosystems play as significant contributors to greenhouse gas emissions, and also the devasting impact of the climate crisis on the sector. This has spurred more strategic investments in innovations to mitigate the impact of climate change, and greater knowledge, data, financing, and partnerships to empower all actors across the food ecosystem to build the resilience and sustainability of their operations.
What do you believe are some of the reasons for these key changes?
The Scientific Group of the UN Food Systems Summit, 2021 estimated that the “hidden costs” of global food and land use systems are US$19.8 trillion per year: $7 trillion of environmental costs and $12 trillion of health costs (of which $11 trillion are linked to loss of human life and $1 trillion tied to the economic costs of illness). This data reinforced our convictions that our current food ecosystem is too expensive and unsustainable, from a climate, and health perspective, and does not serve the most vulnerable and lowest income populations. The COVID-19 pandemic, shipping challenges, rising wars and conflict, and the impact of climate change have created a sense of urgency to work collaboratively to address these crises.
In your view, what should sustainability mean in the agricultural sector?
In the era of ESG and the climate movement, sustainability has almost become a buzzword used with varying definitions. From a food systems lens, sustainability should mean a comprehensive approach from farm to fork, adopting policies, practices, and cultures that protect our soils, environment, and communities, minimize waste, and engage all stakeholders, while ensuring that we produce food that is nutritious, available, and affordable. Regenerative agricultural practices at the farm level and circular – zero waste – production practices at the manufacturing food processing facilities, are just two approaches that excite me about the sustainability movement in the food ecosystem.
What should be our key priorities in sustainable agriculture and are we currently on the right path on the continent or not?
There is a critical tension that we are facing on the African Continent, between prioritizing the urgent need to increase productivity levels of our farmers and livestock, and ensuring the availability of affordable nutritious food, while still adhering to the new trends and expectations in the global climate movement. As a result, it would be unfair to assess or even place a value judgment on the right path for the entire Continent, given the diversity and complexity of the situation in the 54 countries. However, the key priorities from:
· African governments should establish and implement appropriate policies that mitigate the effects of climate change and foster adaptation, as well as climate-smart practices. Governments also need to invest in data, infrastructure, financing, and incentives to foster an enabling environment for companies to also adopt sustainable practices in their own businesses. Rwanda and Morocco are two very progressive countries that have embraced sustainability in many aspects of their governance structures.
· The African private sector must also embrace sustainability practices and green
What are some of the emerging trends and innovations in sustainable agriculture that you are excited about?
I am quite excited about several but a few that are gaining traction include regenerative agriculture, precision farming, zero waste (circularity model), blockchain technology and artificial intelligence for product tracking, and vertical farming/soilless farming. These innovations top the list for me because of their impact on the food ecosystem in terms of increased productivity, adaptation, and environmental considerations.
Our Activity Corner
We’re financing inputs in Uganda!
At AFEX, we are proud to spearhead this initiative, providing farmers with essential resources such as high-quality seedlings, fertilizers, pesticides, and other agricultural products. Our mission is clear: to transform the lives of farmers and ensure they thrive in every aspect.
By equipping farmers with the tools they need, we are paving the way for a brighter future in agriculture, one harvest at a time. Together, we are cultivating prosperity and enabling sustainable growth in farming communities. You can follow our impact journey in Uganda here.
We’re live at the AGRF 2023 Summit
We are thrilled to be a proud partner at the Africa Food Systems Forum 2023 Summit this year, themed “Recover, Regenerate, ACT: Africa’s Solutions to Food Systems Transformation.” This summit is an incredible platform for us to share insights and solutions on how to drive on drive food systems toward a brighter future.
We kicked off on September 4th with two side events on “The real cost of food security” and “Financing Farmers Organizations for Resilience”. Follow AFEX at the AGRF 2023 Summit here to catch up on all the nuggets from panel discussions at the summit.
What we are reading
There are a lot of food system stories out there to read. These stories are a must-read.
Discover how AI holds the key to enhancing global food security, as recognized by a Kenyan innovator - https://www.globalcitizen.org/en/content/can-ai-boost-food-security-waislitz-award/
Empowering women in tech is the essential ingredient for cultivating thriving agri-food systems across Africa. Click here to read more - https://www.herald.co.zw/closing-africas-gender-tech-gap-will-boost-agri-food-systems/
According to UNCTAD’s Economic Development in Africa Report 2023, unlocking Africa’s natural resources opens the door to global supply chains, driving economic growth and we couldn’t agree more. Read the full report - https://www.esi-africa.com/business-and-markets/africa-natural-resources-can-be-used-to-access-global-supply-chains-report/
In this article, our VP of Financial Markets, Oluwafunto Olasemo, shares insights on the successes and failures of different Commodity Exchanges, the uniqueness of our exchange model, and its impact on the economies that adopt it. Read more here - https://venturesafrica.com/can-commodity-exchanges-save-nigerias-agriculture/
Q & A segment
Question: What does AFEX Fair Trade do?
AFEX Fair Trade is the trading entity at AFEX that works to support food security while promoting a fair exchange of value among players in agricultural value chains. With operations in Nigeria, Kenya, and Uganda, our solutions enhance smallholder productivity and enable storage as a service and power trade within Africa and with the rest of the world.
Do you have any questions about agriculture in Africa or our operations as AFEX Fair Trade? Ask away and we’ll find answers for you.
How many words can you get from Sustainability? Share your answers in the comment section at the bottom of this newsletter.
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