Menu
Home
Log in / Register
 
Home arrow Economics arrow Finance for Food
< Prev   CONTENTS   Next >

9 Conclusion

A multitude of sources point to Africa's potential to scale up and improve its competitiveness in agricultural production. The lack of successes seems not to be connected to any one, singular cause, but it is rather a matter of unlocking a grid of entangled challenges to development. From a business point of view, the key is to invest in increased efficiency along the entire value chain. These investments need to be supported by an enabling environment supported by public policy priorities.

Several key views of the agricultural growth corridors address the challenges and may finally bring about lasting change. First, it is taking on a business and market view of agricultural development. A main focus is developing markets that create shared value across the sector, which is necessary to establish sustainable development. Second, a key determinant of success has been the active engagement of leadership in promoting the wider perspective necessary in ensuring the early success of such initiatives. Thirdly, the transformative and crosssector multilevel nature of the partnerships aim to harness the various partners' diverse capabilities to the best advantage. Finally, the innovative and multilayered approach to financing and managing risk is vital to attract private-sector investment. Risk is mitigated through weather-indexed insurance schemes, warehouse receipting, catalytic funding, and patient capital. The cluster approach or hub development add to all of these three perspectives, also adding a social dimension by providing affordable services across the value chain to a wide number of both small holder and medium to large scale farmers alike.

On-the-ground results are only just beginning to appear. At the time of going to print, over 20 initial investments have been made using catalytic financing in Mozambique with similar catalytic investment facility forthcoming in Tanzania. Inspired by Mozambique and Tanzania, the Grow Africa partnership involving a further five countries in a transformative partnership approach to attracting investment into agriculture has also just begun to emerge. This all represents a small start to an ambitious process. Nevertheless, the level of interest raised by the corridor initiatives shows they strike a chord and if nurtured successfully over the medium to longer term could have a significant impact on rural development and food security in the region.

References

Africa Progress Panel (2010) Doing Good Business in Africa: How Business Can Support Development.

Annan, K. (2010) Africa's Green Revolution Forum: Initiating a Quantum Leap Forward. Accra.

AU/ECA (2009) Developing African Agriculture Through Regional Value Chains. Center for Strategic & International Studies (CSIS) (2010) Agricultural Productiv-

ity in Changing Rural Worlds.

Collier, P. (2010) The Plundered Planet. IAASTD (2009) Agriculture at a Crossroads. IFDC (2010) Press Release, 7 December 2010.

Swinnen, J., Maertens, M. (2013) Finance Through Food and Commodity Value Chains in a Globalized Economy. In this volume.

Technical Center for Agricultural and Rural Cooperation ACP-EU (2010) Report, 16 March 2010.

The infrastructure Consortium for Africa (ICA), icafrica.org. World Bank (2011) Africa's Future and the World Bank's Support to It. World Bank (2009) Africa's Infrastructure. A Time for Transformation. World Bank (2010) Agriculture Action Plan 2010–2012.

World Bank (2010) Press Release, 2 February 2011.

World Bank (2011) World Development Report 2010: Reshaping Economic Geography.

 
Found a mistake? Please highlight the word and press Shift + Enter  
< Prev   CONTENTS   Next >
 
Subjects
Accounting
Business & Finance
Communication
Computer Science
Economics
Education
Engineering
Environment
Geography
Health
History
Language & Literature
Law
Management
Marketing
Philosophy
Political science
Psychology
Religion
Sociology
Travel