AGRA

Despite the promising landscape, young Rwandan agri-preneurs and smallholder farmers often encounter significant obstacles that hinder their full participation in the agricultural value chain. Chief among these challenges are limited access to markets, high transaction costs, inadequate access to finance, and a lack of technical skills in modern agricultural practices. The complexity of navigating these barriers has historically stifled agribusinesses’ growth and limited young farmers’ economic contributions.

However, a unique partnership has taken root, connecting smallholder farmers directly with markets and fostering sustainable agriculture. At the center stage, AGRA, with a mission to catalyze agricultural growth, is sowing seeds of transformation – driving initiatives that bridge the gap between youth agri-preneurs and market opportunities, fostering economic development and creating decent jobs for youth.

The World Bank predicts that African agriculture and agribusiness will grow into an €890 billion industry by 2030. Other studies show that the food and agriculture market could increase from US$280 billion annually in 2023 to US$1 trillion by 2030. This presents significant rewards for young people who tap into the industry as farmers and entrepreneurs. With about 78% of Rwanda’s population under the age of 35, according to The Rwanda Youth Survey Report, this demographic presents a tremendous opportunity for the country’s agricultural sector.

Josephine Armand, founder of Kunda Foods, Rwanda’s first artisanal gelato brand, and Pacifique Niyorurema, Founder of Fresco Fruits, are a shining example of how young Rwandan agri-preneurs are harnessing this potential. Their stories highlight the success of the Kigali Restaurant Week, spearheaded by AGRA.

“Being a part of the Kigali Restaurant Week has significantly impacted my business,” says Josephine. “It’s opened doors to new customers and allowed us to showcase the potential of Rwandan ingredients.”

Pacifique, on the other hand, expresses, “We are very grateful for this opportunity, which we learnt about through the Rwanda Youth in Agribusiness Forum (RYAF). It has allowed us to expand our network of farmers and explore new markets, especially the partnership with Kunda Foods, whom we are supplying to, up to three times weekly now.”

Josephine’s path to Kunda Foods began in Switzerland, where she honed her expertise in sustainable practices within the luxury gemstone supply chain. Upon returning to Rwanda, she recognized a vibrant restaurant scene yearning for high-quality, locally sourced ingredients. This gap fueled her vision for Kunda Foods.

With a commitment to both deliciousness and sustainability, Josephine sources ingredients directly from Rwandan farmers, creating a win-win situation. Local farmers are able to benefit from increased demand and stable prices while Kunda Foods brings to life every unique Rwandan flavor in each plate and continues to support the local economy. This approach fosters a resilient and sustainable supply chain, a critical factor for long-term success.

“We’re committed to using the freshest, most flavorful Rwandan produce,” Josephine explains. “It’s not just about creating delicious gelato; it’s about supporting our local communities and creating a positive environmental impact.”

Echoing her commitment, Pacifique notes, “Our initial engagement with Josephine was majorly keen on sustainable Agriculture. In fact, the basis of our agreement is pegged on the quality of fruits we bring to them and specifically the condition in which they are grown. He further adds “With Kunda, it’s not about the volume; it’s all about the quality of the fruits we bring to them and those especially grown through sustainable practices.”

Subsequently, Fresco Fruits has redefined the fruit supply chain by ensuring that local farmers’ produce reaches the market fresh, nutritious, and ready for consumption. Their efforts have not only improved livelihoods but have also contributed significantly to the local economy.

‘We don’t just look for volume,’ Pacifique emphasizes. ‘We look for the impact we can make. We want to help farmers send their children to school and build a better future.’

Founded on the principle of empowering farmers, they directly purchase produce, eliminating exploitative middlemen and ensuring fair prices.

‘We started because we saw how farmers were being dictated by middlemen,’ explains Pacifique Niyorurema, Fresco Fruits’ founder. ‘We used to receive meagre prices and long payment delays.’

Fresco Fruits’ approach is rooted in collaboration. They partner with farmers, providing them with advance payments, technical assistance, and access to a reliable market. A testament to their collaborative spirit is Fresco Fruits’ successful partnership with Kunda Foods, a renowned Kigali restaurant.

“The future of agriculture is bright,” says Josephine. “With hard work, dedication, and support from initiatives like AGRA’s Kigali Restaurant Week, young Rwandan agri-preneurs can transform our food systems and build a more sustainable future.”

For many young entrepreneurs in Africa, the journey from farm to market is fraught with challenges. Access to markets is a colossal barrier that stifles potential growth at its inception. However, both Kunda Foods and Fresco Fruits’ success stories serve as a beacon of hope as Rwanda continues to position itself as a leader in agricultural innovation on the continent.

In light of these achievements, the future of Rwanda’s agribusiness looks promising. With continued support from organizations like AGRA and more collaborative efforts within the industry, their journey is a testament to the possibilities that arise when youth, innovation, and collaboration converge to rewrite the narrative of African agriculture.

By Cheng Cheng

AGRA co-hosted a workshop on Africa-China Agricultural Mechanization and Digitization Cooperation the first of it kind. The event was co-hosted by China Association of Agricultural Machinery Manufacturers (CAAMM) and Hello Tractor. It was held under the theme of “Agricultural Mechanization and Digitization: A Pathway to Sustainable Transformation of Food Systems, Youth and Female Employment, and Food Security in Africa”.

The seminar brought together representatives from the Chinese government, agriculture-related international organizations, domestic and international financial institutions, and Chinese agricultural machinery manufacturers.

The seminar, which included three sub-forums focused on different topics, was co-chaired by Dr. Cheng Cheng, Lead of Asian Partnerships at AGRA, and Wang Fengde, Deputy Secretary-General of CAAMM. Tang Zhongdong, Consul General from the Ministry of Foreign Affairs, and Prof. Chen Zhi, President of the CAAMM, attended the seminar and delivered opening remarks.

Consul General Tang Zhongdong pointed out that in recent years, China-African economic and trade cooperation has developed rapidly. Chinese enterprises have significant agricultural investments in Africa. However, the proportion of cooperation in the agricultural machinery industry is relatively low. He hopes that this seminar will enhance the depth and breadth of China-African cooperation in agricultural mechanization and digitization, break through the bottlenecks in China-Africa agricultural machinery industry cooperation, explore greater potential for China-African agricultural cooperation and provide diversified and innovative cooperation models. China welcomes all parties to join forces to implement the “Plan for China Supporting Africa’s Agricultural Modernization”, making new and greater contributions to building a closer China-Africa community with a shared future.

President of CAAMM, Chen Zhi put forward several requirements and hopes. First, he urged agricultural machinery enterprises to cooperate with Africa in a timely and appropriate manner, emphasizing the importance of understanding local cultures and respecting local customs to ensure sustainable development. He pointed out that professional organizations like AGRA could provide more assistance to Chinese agricultural machinery enterprises in their cooperation with Africa. Second, he called for agricultural machinery enterprises to improve their risk resilience in cooperation with Africa by adopting Hello Tractor’s advanced digital management methods and service models to ensure effective operation across production, sales, and after-sales services. Third, he stressed the importance of product quality and stability, noting that product quality is fundamental to the survival and development of enterprises. It’s also important to improve after-sales service levels to create globally recognized Chinese agricultural machinery. He expressed that the China Agricultural Machinery Industry Association is committed to supporting industry development, acting as a bridge and link for communication and cooperation, and proactively providing more professional and development-oriented services for China-Africa agricultural mechanization and digitization cooperation.

CEO Jahiel Oliver introduced Hello Tractor’s advanced experience in agricultural machinery leasing, management, and services tailored to Africa’s actual needs and discussed prospects for the future development of China-Africa agricultural mechanization and digitization cooperation.

The seminar then delved into the pain points and challenges in the development of China-Africa agricultural mechanization and digitization cooperation. Participants proposed development strategies focused on policy support, financial matching, integration of machinery and agronomy, and training exchanges, emphasizing trade-first, industry-matching, and trade-industry linkage approaches. Representatives from invited agricultural machinery enterprises communicated fully with international agricultural organizations and financial institutions in a Q&A format, reaching cooperation intentions.

Before the seminar, a delegation from AGRA, Hello Tractor, and WINGI INC visited several major agricultural machinery manufacturing companies, including YTO Group, Weichai Lovol, Changzhou Dongfeng, Changfa Agricultural Machinery, and Shandong Wuzheng.

The policy and legislative environment is a key driver of agricultural transformation. Policy and regulatory regimes “define the rules of the game”. They regulate the roles and behaviour of players in the sector, determine resource allocation, and assign incentives and disincentives accordingly.

Policies shape the business environment by influencing costs, risks, and competition barriers for different players in the agricultural value chain. This in turn extensively affects investment decisions not only by the government but also by the private sector. Thus, by a single stroke of a policy or law, the government can shift the direction and pace of agricultural development.

Opinion leaders in agricultural development agree that the observed changes in Africa’s agriculture and economic fortunes over time have much to do with the policies that African leaders have chosen than anything else. Weak policies and poor legislative decisions have shaped the continent’s agriculture and economic growth by stifling investments in skills, technology, services, and infrastructure.

Whereas regulation is important to ensure safe agricultural practices, setting quality standards, encouraging innovation and sustainable use of resources; heavy regulation creates burdensome procedures and high transaction costs and can be detrimental, especially to small players. Therefore, the benefits of regulations should always outweigh its social and economic costs. Excessive regulation with opaque discretion and overbearing regulations in the agriculture sector can constrain innovation and trade, to the detriment of poor farmers in the rural villages in the continent.

Agriculture policy and legislative regimes are very dynamic. Governments are constantly enacting new policies and revising existing ones. Yet, a lingering question is how grounded these decisions are in solid data and evidence. Many times, policies have had unintended negative consequences, while others are lacking in key aspects that ensure effectiveness, equity, and sustainability.

 Consider the policies enacted by African countries since independence. In the 1960s-1980s, many nations implemented import substitution industrialization policies, which included trade restrictions like import barriers, marketing controls, and export taxes. These measures aimed to protect nascent industries from competition. However, they inadvertently raised prices for imported fertilizer and equipment, while exports lost competitiveness due to currency appreciation.

The infamous Structural Adjustment Programs (SAPs) instituted in the 1980s-1990s pushed for better incentives for producers and reduced restrictions for the private sector to invest by eliminating public agricultural marketing boards, ending subsidies, deregulating agricultural pricing and marketing. Evidence is mixed, but many countries experienced strong productivity growth in the 2000s, as a result of macroeconomic stabilization.

At the continental level, the post-2000s era policy has been driven by the Comprehensive Africa Agriculture Development Programme (CAADP), the 2014 Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods, and the Africa Continental Free Trade Area (AfCFTA). These commitments require countries to allocate at least 10 percent of public expenditures to agriculture, achieve a 6 percent average annual agricultural growth rate, and reduce restrictions to intra-African agricultural trade, among others. Although CAADP has resulted in increased prominence of agriculture in policy agendas and therefore expenditure and funding, research shows that most of the funding has been allocated to input subsidies.

The subsidies, although associated with increased use of inputs and higher agricultural yields, are poorly designed and rife with inefficiency, bias, and corruption. Implementation of the AfCFTA is constrained by the continued use of temporary regional trade restriction policies, ostensibly as countries seek to respond to food supply and deficit conditions. The International Trade Centre data finds that 70% of African food exporters are affected by challenges related to non-tariff measures. These trade-restricting policy measures sometimes founder and push prices higher.

Ex-ante policy analysis and pre-legislative assessments utilize predictive analysis techniques to forecast the impact of a policy or legislation prior to its implementation. During an ex-ante evaluation, policymakers gather data and evidence to assess the thoroughness of problem/gap diagnostics, relevance and coherence of proposed strategies and objectives to users, consistency with other policies and strategies, pragmatism of expected results, and economic and social impacts on various stakeholders and their activities.

Policies informed by data and evidence are more likely to be effective, equitable, and sustainable. Yet, despite the clear benefits, there are many instances where agriculture policy and legislative decisions are driven more by political expedience or ideology than by data and evidence.

Policymakers in Africa face data availability and quality challenges. Outdated, incomplete, and biased data hinder effective decision-making. Political interests often override evidence-based choices. For instance, despite evidence of inefficiency, bias, and corruption, some governments persistently implement publicly driven input subsidy programs instead of exploring private sector-driven alternatives.

To overcome such challenges, African governments and partners should invest in robust data collection and analytics infrastructure (technology) and skilling (training of personnel to analyze and interpret data). To effectively utilize the data for policy, a culture of transparency and accountability, where data and the rationale behind policy decisions are shared publicly to build trust with stakeholders should be fostered.  The CAADP Biennial Review process is an example of a publicly available accountability mechanism where the performance of countries against the various Malabo declaration indicators is tracked. Lastly, the role of stakeholder engagement cannot be ignored.

Inclusion of various interest groups such as scientist groups and think tanks, provides reliable evidence and exchange of knowledge, while public engagement enhances scrutiny, relevance, and acceptance of policies.

Poultry Farming is an important Safety Net for the Youth

Poultry farming presents a golden opportunity for African youth to transform their lives and contribute to food security. As the continent faces challenges related to unemployment, malnutrition, and poverty, engaging young people in poultry production can be a game-changer.  

According to the Food and Agricultural Organisation (FAO) the importance of poultry on livelihoods and food security lies in the provision of meat, and eggs, while being a strategic household investment. 

Poultry is also an important safety net in the event of a drought – it is easily disposable for cash when need arises or during droughts.  

Rearing poultry can be a rewarding venture, especially for young farmers. Here are some key skills to focus on: 

1. Education and Knowledge: Before diving into poultry farming, invest time in learning. Explore resources online, government extension programs, and agricultural colleges. Understand different breeds, proper chicken care, nutrition, disease prevention, and biosecurity measures.  
2. Communication and Negotiation: Young poultry farmers should learn how to effectively communicate with suppliers, customers, and other stakeholders. Negotiation skills can help secure better deals with feed merchants and hatcheries.  
3. Understanding Inputs and Costings: Learn about the costs involved in poultry production. Understand feed prices, raw materials, and other inputs. Managing volatility in commodity markets is essential.  
4. Biosecurity Measures: Implement practices to prevent disease outbreaks. Biosecurity helps protect your flock from infections and ensures healthy birds. 
5. Record Keeping: Maintain detailed records of expenses, production, and health status. Good record-keeping enables informed decision-making. 
6. Practical Skills: Hands-on experience matters. Learn how to handle chicks, manage broilers, and care for layers. Practical skills include feeding, housing, and disease management. 
7. Market Awareness: Understand market trends, consumer preferences, and demand. Stay informed about poultry industry developments. 

Remember, passion, dedication, and adaptability are essential traits for successful poultry farming. 

“Data-Driven Revolution: How African Policymakers Can Transform Agriculture

Revolutionising African Agriculture: Data-Driven Imperatives“

By  Davis Muthuni

The policy and legislative environment is a key driver of agricultural transformation. Policy and regulatory regimes “define the rules of the game”. They regulate the roles and behaviour of players in the sector, determine resource allocation, and assign incentives and disincentives accordingly.

Policies shape the business environment by influencing costs, risks, and competition barriers for different players in the agricultural value chain. This in turn extensively affects investment decisions not only by the government but also by the private sector. Thus, by a single stroke of a policy or law, the government can shift the direction and pace of agricultural development.

Opinion leaders in agricultural development agree that the observed changes in Africa’s agriculture and economic fortunes over time have much to do with the policies that African leaders have chosen than anything else. Weak policies and poor legislative decisions have shaped the continent’s agriculture and economic growth by stifling investments in skills, technology, services, and infrastructure.

Whereas regulation is important to ensure safe agricultural practices, setting quality standards, encouraging innovation and sustainable use of resources; heavy regulation creates burdensome procedures and high transaction costs and can be detrimental, especially to small players. Therefore, the benefits of regulations should always outweigh its social and economic costs. Excessive regulation with opaque discretion and overbearing regulations in the agriculture sector can constrain innovation and trade, to the detriment of poor farmers in the rural villages in the continent.

Agriculture policy and legislative regimes are very dynamic. Governments are constantly enacting new policies and revising existing ones. Yet, a lingering question is how grounded these decisions are in solid data and evidence. Many times, policies have had unintended negative consequences, while others are lacking in key aspects that ensure effectiveness, equity, and sustainability.

 Consider the policies enacted by African countries since independence. In the 1960s-1980s, many nations implemented import substitution industrialization policies, which included trade restrictions like import barriers, marketing controls, and export taxes. These measures aimed to protect nascent industries from competition. However, they inadvertently raised prices for imported fertilizer and equipment, while exports lost competitiveness due to currency appreciation.

The infamous Structural Adjustment Programs (SAPs) instituted in the 1980s-1990s pushed for better incentives for producers and reduced restrictions for the private sector to invest by eliminating public agricultural marketing boards, ending subsidies, deregulating agricultural pricing and marketing. Evidence is mixed, but many countries experienced strong productivity growth in the 2000s, as a result of macroeconomic stabilization.

At the continental level, the post-2000s era policy has been driven by the Comprehensive Africa Agriculture Development Programme (CAADP), the 2014 Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods, and the Africa Continental Free Trade Area (AfCFTA). These commitments require countries to allocate at least 10 percent of public expenditures to agriculture, achieve a 6 percent average annual agricultural growth rate, and reduce restrictions to intra-African agricultural trade, among others. Although CAADP has resulted in increased prominence of agriculture in policy agendas and therefore expenditure and funding, research shows that most of the funding has been allocated to input subsidies.

The subsidies, although associated with increased use of inputs and higher agricultural yields, are poorly designed and rife with inefficiency, bias, and corruption. Implementation of the AfCFTA is constrained by the continued use of temporary regional trade restriction policies, ostensibly as countries seek to respond to food supply and deficit conditions. The International Trade Centre data finds that 70% of African food exporters are affected by challenges related to non-tariff measures. These trade-restricting policy measures sometimes founder and push prices higher.

Ex-ante policy analysis and pre-legislative assessments utilize predictive analysis techniques to forecast the impact of a policy or legislation prior to its implementation. During an ex-ante evaluation, policymakers gather data and evidence to assess the thoroughness of problem/gap diagnostics, relevance and coherence of proposed strategies and objectives to users, consistency with other policies and strategies, pragmatism of expected results, and economic and social impacts on various stakeholders and their activities.

Policies informed by data and evidence are more likely to be effective, equitable, and sustainable. Yet, despite the clear benefits, there are many instances where agriculture policy and legislative decisions are driven more by political expedience or ideology than by data and evidence.

Policymakers in Africa face data availability and quality challenges. Outdated, incomplete, and biased data hinder effective decision-making. Political interests often override evidence-based choices. For instance, despite evidence of inefficiency, bias, and corruption, some governments persistently implement publicly driven input subsidy programs instead of exploring private sector-driven alternatives.

To overcome such challenges, African governments and partners should invest in robust data collection and analytics infrastructure (technology) and skilling (training of personnel to analyze and interpret data). To effectively utilize the data for policy, a culture of transparency and accountability, where data and the rationale behind policy decisions are shared publicly to build trust with stakeholders should be fostered.  The CAADP Biennial Review process is an example of a publicly available accountability mechanism where the performance of countries against the various Malabo declaration indicators is tracked. Lastly, the role of stakeholder engagement cannot be ignored.

Inclusion of various interest groups such as scientist groups and think tanks, provides reliable evidence and exchange of knowledge, while public engagement enhances scrutiny, relevance, and acceptance of policies.