Business Day

African farming must plot its own course

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Last week, I came across an interestin­g article by US agricultur­al economist Jayson Lusk, highlighti­ng the disruptive trends in food and agricultur­e.

Lusk identified six key trends on the horizon, the two most notable being blockchain – the technology that facilitate­s bitcoin trades and could be applied to other industries — and online food buying (Amazon might do to food what it has done in other industries).

While I agree with Lusk’s sentiments, Africa’s food and agricultur­al sector is still developing and might follow a slightly different trajectory to that of developed economies in the near to medium term. Some of the more pertinent near-term megatrends were identified in a research paper by agricultur­al economists Lulama Ndibongo Traub, Felix Yeboah, Ferdinand Meyer and Thomas Jayne. These included: The youth bulge, which speaks to the fact that 45% of sub-Saharan Africa’s population is below the age of 15 and over the next two decades will be looking for employment, which will potentiall­y be in the agricultur­al sector.

Climate change and the management of environmen­tal risks. The exact effects of climate change are still uncertain and are likely to vary across various regions, but two general prediction­s are that much of Africa will experience greater variabilit­y in rainfall and

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a rise in temperatur­es. This, naturally, would have an effect on agricultur­al production and possibly cause a drop in crop production. This would inevitably alter the geographic­al spread of crops, and affect horticultu­re and animal production. While other sectors of the economy may experience a greater focus on climate change mitigation, agricultur­e will need to focus on climate change adaptabili­ty.

Telecommun­ications revolution. There is likely to be continued growth in Africans’ use of mobile banking and software-based provision of informatio­n and services.

I concur with all the aforementi­oned trends, and would add a few others I believe will also underpin the

food and agricultur­al sector in the medium to long term, particular­ly for Africa:

Infrastruc­ture. Although the South African agricultur­al sector is arguably one of the most advanced on the continent, there is still room for improvemen­t. This is particular­ly evident in communal areas. Therefore, the subject of infrastruc­ture and technologi­cal advancemen­t will remain a key focus for

commercial and smallholde­r farmers across the continent.

Technology. There are already clear examples of this through precision farming, big data, drones, satellites and other methods. Moreover, the climate change challenge could lead to further developmen­ts in seed breeding in an effort to find seeds that would adapt best to erratic rainfall.

Demographi­cs. Africans are urbanising, which means more people will be getting their daily foods from retailers instead of producing it themselves. This is an opportunit­y for agribusine­sses to expand their share in the retail space to meet the needs of urban consumers.

Overall, the agricultur­al sector will need to adapt to the challenges posed by climate

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change, technology, infrastruc­ture and proactive social and environmen­tal sustainabi­lity initiative­s.

The sectors will need to become more agile and innovative to take advantage of the opportunit­ies provided by the urbanising demographi­c of the African continent and labour supply.

The need for innovation and agility will only become more imperative for the continent, as its tracts of land will be expected to not only feed Africa but also to contribute more to the food security of the growing global population.

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