Pressing problems facing rural Africa and some proposals for addressing them

As its name indicates, the International Fund for Agricultural Development (IFAD) tackles poverty by focusing on agriculture and rural development. A strategy that is particularly valid for sub-Saharan Africa, where agriculture remains the largest employer, job creator and exports earner. The agricultural sector accounts for about a third of sub-Saharan Africa’s GDP, 40 per cent of exports and in most countries it provides between 60 and 90 percent of the employment. Small-scale farming and low-income farmers account for most of the staple food production on the continent. These facts indicate that to grow and reduce poverty, the countries of sub-Saharan Africa have little option than invest in rural development and ensure a well performing agriculture.

Challenges for development of the African agricultural sector
Several African countries have achieved a great deal of success towards achieving food security for their citizens. They have demonstrated that yields of staple crops can be significantly increased. Moreover, commitments to reduce hunger and malnutrition are increasingly made explicit in national poverty reduction strategies and policies. However, these efforts have not yet resulted in a sustainable reduction in the prevalence of poverty on the continent, particularly in rural areas. Although some countries, such as Ghana, are on track to reach the MDGs.

Sub-Saharan farming is currently experiencing serious difficulties. The Green Revolution breakthrough that jumpstarted Asia’s agricultural growth in the 1960s and 1970s has not reached the African continent. In several areas, poor infrastructure, policy discrimination against agriculture, low investment, armed conflicts, HIV/AIDS and climate change continue to underline progress. Land degradation resulting from extensive agriculture, deforestation and overgrazing has reached alarming levels. Forest area is declining as a result of unchecked growth of timber exports, agricultural expansion and fuel wood demand for a growing population. About 50 per cent of the farmland suffers to some extent from soil erosion, and as much as 80 per cent of pasture and rangelands exhibit some form of degradation.

The effects of these negative trends are unremittingly disastrous. In the ten years between 1992 and 2002, the number of undernourished people in Africa grew from 179 million to 203 million. If natural resources are continuously allowed to decrease and the decline in agricultural productivity is not reversed, climate change will add misery to an already difficult situation. According to some experts, a minimum of 2.5 oC increase is expected in Africa by 2030. Between 75 million and 250 million Africans, out of 800 million, are expected to be short of water and 600 000 square kilometers of cultivable land may be ruined. The situation is going to be exacerbated by the effects of the apparently inexorable HIV/AIDS pandemic. Even if the sub-Saharan region harbors just over 10 per cent of the world's population, it is home to 64 percent of all HIV infections, with an estimated 21.6 million to 27.4 million people living with HIV.

The degree of global warming in Africa is just but one of the factors contributing to these bleak forecasts; it is the general vulnerability of the continent’s rural population that is the cause of most concern. Adaptation programmes are urgently needed for improving farming resilience to reduce the vulnerability of Africa’s agricultural sector and its rural inhabitants. In the short run, Africa’s own policy makers and civil society need to take the lead in safeguarding the agricultural sector and assure its sustainability, even if, as in the case of global warming, much of the damage is being done by actions occurring elsewhere.

Africans have adopted a number of strategies to cope with their dwindling agricultural resources. One of them is migration, mainly to other African countries. It is estimated that out of a total of 191 million international migrants, or people living outside their country of birth, 17 million are in Africa. Compared to other developing regions, the number of Africans overseas migration is still relatively small. The share of remittances, although lower than in other regions, is nevertheless significant. In 2006, the amount of money sent by working migrants to sub-Saharan Africa was estimated at US$7 billion, amounting to 3.5 per cent of the total flow of international remittances to developing countries¹. However, this figure is grossly underestimated since the majority of African migrants are inter-regional and their remittances, which are generally sent through informal channels, are not accounted for.

One of the impacts of migration is the feminization of African agriculture In many African societies women do not only have the main responsibility for caring for and nurturing their families, many of them also carry out most of the agricultural work. A salient aspect of recent African migration is that an increasing number of women are migrating since lack of productive employment is urging them to seek alternative ways to support their families. Women’s recent mobility in several African countries may also be seen as a consequence of shrinking natural resource bases, armed conflicts and increasingly unconstrained diseases.² In recent decades, because of rural-to-urban migration, most African countries have experienced an increased rate of urbanization, giving rise to the growth of large cities such as Lagos, Kinshasa and Nairobi. However, despite the recent pace of urbanization and current forecasts for urban population growth, the majority of poor people in Africa will continue to live in rural areas for many decades to come, and a sustainable agricultural sector will remain an essential foundation for development.

Positive trends
In spite of the bleak picture presented above, there are several positive signs indicating that the African agricultural sector may recover and become more efficient. Agriculture in Africa has gone through a long period of decline, but in several areas the continent is currently regaining economic prominence. The past few years have witnessed a marked increase in agricultural sector growth, from 2.7 per cent in 2002 to 3 per cent in 2003 and 5 per cent in 2004. Favorable price movements for a number of agricultural products have contributed to this trend, while improved production conditions have provided another cause for growth in quite a number of countries. If factors of success are gathered, like improved infrastructure, better availability of inputs and conducive policies, the increasing urban demand for foodstuffs may become a positive ingredient for overall agricultural development.

Actually, there are many local successes in food crop production, such as increases in the production of maize in several West African countries, beans in East Africa, cassava in several other countries and more recently rice in West and East Africa. Horticulture and dairy sectors have also expanded. At the same time, market driven fertilizer expansion is taking place, while scores of promising technological innovations are already in the early stages of adoption.

In some places we are witnessing significant yield increases. Water management has become more efficient in Nigeria and Tanzania. Soil and water conservation is making progress in Burkina Faso and in parts of West/Central and North Africa. Terracing is advancing and improving in the Great Lakes region. Zero-grazing dairy producers are becoming common in Kenya. Nevertheless, in several parts of Africa tensions prevail over access to land between pastoralists and farmers. In some places, a local private sector is emerging including input dealers, produce buyers and farmer advisory services. Agro-business is expanding, for example cotton and tobacco – by far the largest suppliers of agricultural credit to smallholders.

Regional integration is becoming a reality the Economic Community of West African States (ECOWAS), the Southern Africa Development Community (SADC) and the African Union are tangible examples of regional integration and may increasingly facilitate local and regional market linkages, thus removing many of the main obstacles to internal flows of products.

The emergence of farmers’ organizations – groups, associations, unions – at local, national and regional levels is making it possible for farmers to play an ever more important role in policy dialogue and implementation. A range of community organizations is emerging, while informal financial institutions (for example, savings and credit associations and cooperatives) are steadily growing in importance. This is quite encouraging because if people are better organized they are more likely to take advantage of economic opportunities and influence the policies and decision that affect their livelihood at local, national and regional levels.

Agricultural development is to a higher degree than before becoming an integrated part of the agenda of both African governments and donors. Following the 2003 Maputo Commitment, African countries are making efforts to reach the 10 per cent budget allocation to agriculture. This is significant progress compared to the situation in 2003, when most governments were funding agriculture with less than 4 per cent of their national budgets.

Rural economies are becoming more diversified- while the majority are engaged in agricultural activities, increasing numbers of people are also engaged in off-farm activities. The emergence of rural microfinance institutions (MFIs) servicing the poor rural people, especially women, has made it possible for women and men to access financial resources to start small business.

New factors such as the emergence of global value chains, biotechnology-driven agricultural research and new markets for biofuels are currently impacting global agriculture. Although some of these developments can be considered as new opportunities, they may in some instances also be perceived as potential threats.

The development of biofuels, for example, may have a strong impact on rural areas. The introduction of biofuel crops can reduce poverty as prices of agricultural commodities could rise and positively affect rural incomes as well as increase on- and off-farm employment.  However, concerns have been raised over the risk of displacing poor people from their territories due to expansion of large-scale biofuel crop plantations. While in the immediate future biofuel have the potential to revitalize rural areas and help reduce rural poverty, new second generation technologies must be adopted in order to avoid the risk of food insecurity as supply/demand imbalances arise. To maximize the opportunities and minimize the risks that may result from bioenergy production, policies in  environment, agriculture, energy and trade must take into account the diversity of situations and specific needs of African countries.

The role of development agencies
As a representative of a financial institution that for the last 30 years has been promoting agricultural and rural development, I am convinced that no matter how poor people might be, if they are given the opportunity to cultivate the land, and have access to credit, technical assistance, roads and markets for their products, it will be possible for them to overcome their poverty and make a sustainable livelihood. Increased investments in smallholder farming is a prerequisite for tackling the root causes of poverty and rural out-migration and for achieving rural development. I will not linger on well-known facts proving that an effective agricultural sector is a benefit to the rest of a country’s economy and that even if agriculture is a private-sector activity the use of natural resources, particularly land and water, requires public regulation and interventions³ in order to maintain sustainability of such resources for new generations to come. I would simply like to stress the crucial importance of creating a conducive environment for farmers to achieve productivity increases.

There is an urgent need to invest in institutional and human capital development at all levels: rural finance institutions, value chains and rural industries, local governments and municipalities, with a specific focus on farmers’ organizations and the empowerment of women to ensure their participation in decision making fora, as well as in productive and income-generating activities. To overcome poverty, rural people need to organize themselves to take advantage of economic opportunities. At local, national and regional levels farmers must be guaranteed a stronger voice and means that allow for a more effective influence on policies and decisions that affect their livelihoods. In this context, supporting training of rural women and men to increase their technical capabilities should be at the centre of any development initiative in Africa. Programmes targeting rural producers, particularly the young generation, must be designed, supported and sustainable.

As development practitioners, we may have limited influence in tackling the effects of climate change, diseases, war, inefficient policies, discriminating trade agreements and other scourges on African agricultural. But we have a clear mandate and the moral responsibility to support African countries in their efforts to find adequate and sustainable solutions to counteract the effects of climate change, to increase their resilience and put the necessary measures in place to adapt to increased vulnerability. We must all join forces to support poor farmers in their struggle to obtain the necessary means to gain knowledge and influence policies that enable them to maintain and improve their own livelihoods, at the same time as they may influence decision making in such a way that it benefits the entire society and safeguards the natural resources on which we all depend on for our survival.

In this context, it may be important to consider the important contribution the international community could make, and in particular the European Union, to the development of African agriculture. Based on the Fund’s experience, four areas where interventions are urgently needed come immediately to mind:

• Climate change: Europe is expected to fulfill existing commitments to reduce greenhouse gas emissions and to actively promote the same commitments in developed and developing countries. Aside from risk mitigation, the European Community is expected to support programmes for adaptation to climate change, specifically in African countries where the risks of climate change impact are the highest. IFAD is willing and prepared be part of such initiatives by mobilizing stakeholders. IFAD is also particularly willing to support local farmers in their efforts to safeguard and manage natural resources while carrying out agricultural activities in such a way that the harmful effects of climate change might be mitigated to the highest possible extent.
• Farmer organizations’ empowerment ought to be supported both at local, national and regional levels. IFAD would be pleased to share its experience in supporting farmers’ organizations and the positive impacts they have for advancing rural development and the empowerment of poor rural people, particularly women. The Fund is prepared to cooperate in putting in place an ambitious joint programme to support the involvement of African farmers’ organizations in policy dialogue, as well as in the design and implementation of rural and agricultural development projects.
• Trade: Economic Partnerships Agreements (EPAs) between the EU and African, Caribbean and Pacific countries (ACP) should promote smallholder farmers’ access to markets. They must facilitate the access of African products to European markets by removing or alleviating non-trade barriers and rules of origin, as well as reducing subsidies for agricultural products that pose unfair competition to African products. An opening up of African markets must be gradual while promoting regional integration and local production competitiveness.
• Investments: Crucial areas for African development, such as agriculture, infrastructure and financial services, as well as the provision of health and educational services, should be at the centre of the renewed European Union (EU) commitment to increase its support to Africa. For example, the renewed commitment of African countries to invest in agriculture should be further encouraged and supported. Accordingly, the new EU strategy for Africa ought to support the above-mentioned consensus of African countries to raise the budget dedicated to agriculture to at least 10 per cent of national budgets.

Conclusion
Considering the present economic strength of Europe, it is high time to make a concerted effort to support Africa and its growing prospects for sustained economic growth and poverty reduction. Europe support will contribute to foster new markets and create opportunities for millions to have access to sustainable livelihoods in their communities without having to succumb to ‘forced’ migration, to urban slums in Africa or Europe. Such investments and efforts will also contribute to the survival of our entire planet. I would like to plead for a comprehensive effort to invest in the sustainable development of Africa to ensure the equitable participation of African women and men in the prosperity and well-being that many of us take for granted. We must stop seeing African farmers as a poverty burden, appreciate their potential as producers of food, feed and fuel and as rightful stewards of the natural resource base. Investing in that production potential is not only a moral imperative to eradicate poverty but a good business proposition for the economic and environmental survival of our planet. Given our unprecedented prosperity in the EU, I believe it is time to ask: If not now? When?

Berlin, June 18-21, 2007

 

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1/ The total yearly inflow of remittances to Africa is estimated at US$21 billion and for many countries constitutes an important source of foreign exchange and household income.

2/ HIV/AIDS is not the only disease that is threatening agricultural development in sub-Saharan Africa. Apart from several diseases brought about by starvation and inadequate nutrition, several infectious diseases are proliferating due to climatic changes, population movements and a spreading resistance to drugs. The prevalence of malaria has been escalating at an alarming rate. An estimated 300 million to 500 million cases of malaria each year are causing 1.5 to 2.7 million deaths. Malaria ranks third among major infectious disease threats in Africa, after pneumococcal acute respiratory infections and tuberculosis.

3/ Even in the most market-driven agricultures of the World, there is a need for public policies and regulatory measures on different aspects linked to agricultural activities: food safety standards, animal health and quality regulation, biotechnology, agriculture education and training, tax and incentive policies, etc.