English 
French Chapter 5 – Achieving Resilience in Downstream Agri-Food Systems
Key Messages
1
Over the coming decade, Africa’s food demand will rise, making it one of world’s largest sources of additional demand. 2
Value addition post-farm in Africa is low by international standards. To meet growing demand, Africa will benefit from upgrading value chains in the food system. This is best achieved through policies that support agricultural transformation more generally and incentives that encourage private investment in food systems. 3
Africa’s agri-food system offers growth potential to large-scale, multinational agribusinesses. Over the past five years, some of the world’s largest grain traders, food processors, and wholesalers/retailers have expanded their investments on the continent. This has positive implications for private investment by small- and medium-scale agribusiness firms as well, and for the economic, social, and environmental sustainability of African food systems. 4
Africa will become more resilient as it ‘upgrades’ value chains in the food system which will involve shifting production and employment from informal microenterprises to formal firms offering wage employment with income security and health benefits for employees and their families, and improvements in food safety. 5
The prospect of a single market with more than a billion consumers and a combined GDP of more than U$2.5 trillion presents vast opportunities for agribusiness in Africa. The expanded markets create unprecedented opportunities to capitalize on economies of scale. To realize this potential, African countries should effectively implement AfCFTA. The additional state revenues from greater intra-Africa food trade can help finance public investments to make Africa’s food systems more resilient and sustainable. 6
SSA remains a challenging place to do business. Bureaucratic obstacles to entry and growth result in high transaction cost for potential agripreneurs. Public investment in transport (rail, road, and port) and energy infrastructure would significantly lower the cost of trade and create many indirect benefits that support both resilient and sustainable food systems.