FAO, AfDB canvass digitalization of Africa’s agric value chains

EXPERTS AT A FOOD AND AGRICULTURE ORGANISATION (FAO) Investment Centre and African Development Bank organised webinar have vigorously canvassed deepening digitalization of Africa’s agricultural value chains in order to transform the sector, stressing that the continent must seize the opportunity offered by the COVID-19 pandemic in order to do this.

åParticipants identified potential investments for the digital transformation of African agriculture during and after COVID-19, ranging from digital profiling of value chain actors to mobile payments and ecommerce, while also discussing the necessary policy and regulatory frameworks for inclusiveness, scalability and viability, including for data governance and protection, digital financial products, digital ID systems, e-contracts and e-extension services.

The gathering proposed the bundling of digital services, agri-tech innovation challenges and open systems to help build financially viable supply capacity.

“Efforts need to be catalysed on both the policy and investment fronts for digitalization to help make agrifood systems more productive, more inclusive and more sustainable in the future,” Mohamed Manssouri, FAO Investment Centre director, said.

Before the COVID-19 crisis, digital technologies were changing the global economy, and agri-food systems were part of that transformation. “With COVID-19, this trend has accelerated,” Manssouri noted.

Like elsewhere, the spread of COVID-19 has disrupted agri-food systems across Africa. Key supply chains have been interrupted, markets closed and movement restricted, resulting in agricultural labor shortages. Farmers are missing planting seasons, while agribusinesses are facing liquidity constraints.

Demand for catering has dwindled and consumer preferences have shifted away from highly perishable foods, like fruits and vegetables, meat and fish, to ones with longer shelf-lives.

“We must also use this wave of interest to build digital platforms that facilitate linkages between value chain actors at much-reduced transaction costs,” Martin Fregene, AfDB’s director of agriculture and agro-industries, said.

As the pandemic gradually shifts from an emergency response to recovery and resilience, there is an opportunity to build back better in the agricultural sector, Gerard Sylvester, FAO investment officer said, noting that financial inclusion will be a game-changer in rural communities.

“We need to ensure that costs are not a barrier, that small-scale farmers can adopt and apply digital advisory and other knowledge products and that the content is relevant, localized and actionable,” he maintained.