At the two-day 2024 Africa CEO Forum, industrialists, financial leaders, and representatives from non-governmental organizations (NGOs) converged on Thursday, May 16, to confront one of the continent's most pressing challenges. At the heart of the discussion on the sidelines of the forum was the puzzle to transform Africa’s agriculture sector. With over 33 million smallholder farmers driving approximately 80 per cent of Africa's agricultural output, the imperative to support their resilience has never been more urgent. Despite significant financial commitments from the food industry, Development Finance Institutions (DFIs), NGOs, and governments, a fundamental gap persists a lack of alignment with the realities faced by these farmers on the ground. Key discussions revolved around fostering inclusive business led supply chains, innovative financing solutions, and harnessing technology to empower farmers and inform policy decisions. Participants emphasized the need to co-create sustainability initiatives with smallholders, ensuring that interventions are tailored to local contexts and conducive to mutual profitability. One notable example acknowledged the government of Rwanda’s initiative to provide accessible water infrastructure in Gabiro embodies this collaborative approach, aiming to elevate both large-scale and small-scale agriculture by addressing critical infrastructure gaps. The discussion shed light on the importance of gender inclusivity in agriculture, particularly regarding land ownership and investment. While Rwanda emerges as an indicator of progress in this regard, the broader continental landscape calls for concerted efforts to empower women in agriculture. Moreover, Quentin Rukingama, the Managing Partner at JBQ Africa, highlighted a pressing concern regarding the aging demographic within the agricultural sector. “The average age of farmers is around 50 years, and we might wake up in the next 20 years with no farmers,” he said. Experts also highlighted other major challenges such as inability by farmers and agribusinesses to generate decent returns. Jack Kayonga, CEO of Crystal Ventures, emphasized that the lack of profitability is a significant deterrent for youth considering agriculture as a career path. However, amidst these challenges he highlighted Rwanda's progress in addressing the financing needs of smallholder farmers. Crystal Ventures is a major player in Rwanda’s agriculture and farming. The company’s subsidiary, Inyange Industries, works with livestock farmers to boost milk productivity. The company has also been designated land in Central African Republic and Mozambique to invest in large-scale agriculture. Kayonga highlighted that Rwanda's innovative approach to de-risk the agriculture sector, showcasing how affordable financing has been raised and channeled through the development bank, subsequently extending to all financial institutions. Through CDAT, farmers can access loans at rates ranging between 8-9%, while banks can effectively de-risk their portfolios,” Kayonga explained. “This innovative mechanism enables banks to support agriculture projects that they might have otherwise overlooked, as many prefer personal loans,” he added. “Appreciating the value of agricultural projects becomes more feasible under this framework, he added. Embracing technological advancements emerged as another cornerstone of the sustainability agenda, with discussions centering on the adoption of Agriculture Technology (AgTech) for enhanced irrigation and climate adaptation. Obai Kalifa, Deputy Director in Agricultural Development at the Gates Foundation, underscored the necessity of technology adaptation in agriculture. “China's nuclear farms stand as a compelling example for Africa, showing how much agriculture has evolved. Their innovative approach does not only inspire us but also highlights the transformative potential of technology in shaping the future of farming, he noted.
