Increased agricultural trade between African countries promises to promote sustainable and inclusive growth and development through the attainment of food security and access to value addition opportunities.
Adoption of the agri-food system expands opportunities for young people, women, and small farmers to earn a living and work. Africa is a net importer of various commodities, and only a small portion of the continent’s agricultural trade, estimated at 20 per cent, consists of intra-African trade.
The continent primarily imports finished goods, but intra-African trade is dominated by high-value manufactured goods. Africa consumes what it does not produce and produces what it does not consume.
Governments, policymakers and key stakeholders are charged with the development of legislative and regulatory frameworks, implementable policies and programs to promote intra-African agricultural trade and encourage the development of agricultural value chains.
In the long run, this will facilitate stakeholders, farmers, markets and ultimately our communities’ access and reap benefits arising from increased intra-African trade as envisioned by the African Continental Free Trade Agreement (AfCFTA). Per the Agreement, tariffs on 90 per cent of intra-African trade goods were eliminated to make it easier for African businesses to trade within the continent and capitalise on the expanding market.
The optimisation of trade in goods and services within the African continent, coupled with novel and ambitious ventures into emerging sectors, such as investment tourism, intellectual property and competition policy would unlock Africa’s e-commerce potential which can be reinvested into the agricultural sector.
Traditionally, Africa's trade competitiveness has been hampered by low agricultural productivity and investment, poor transportation and communication infrastructure, inefficient procedures, and global trade barriers. A favourable policy environment and continuous monitoring will improve the chances of strengthening the economy and driving the continent's growth.
An agri-food system that teaches horticulture and agronomy in order to grow uniform products and establish quality control standards would benefit the continent. Farmers will be able to produce the quality and quantity of produce that high-value buyers require by receiving training and technical assistance.
Adoption of agricultural technologies such as early warning pest control systems, drip irrigation systems, and the use of food balance sheets and fertilisers can improve data-driven decisions. Farmers across the continent will be equipped with the skills needed to produce high-value crops in a sustainable manner through peer-to-peer learning and collective knowledge sharing.
Farmers with business skills will have better access to finance to help them prepare their businesses for growth by hedging future contracts with high yield crops together with providing business development, financial management and group management services. Global Good Agricultural Practices (GAP) will be delivered to both domestic and international markets as intra-African trade grows.
The derivative market platform will expand the market for commodities as well as global food security. Leading the intra-African trade economy to its desired state of progress is heavily reliant on leveraging our core strength in agriculture to meet competitive global challenges. The adoption of modernised agri-food systems has the potential to transform intra-African trade.
Karen Kandie
