Africa Investment Forum: AfDB on why agriculture remains key to Africa’s growth

For too long, agriculture has been overlooked in the development process in Africa. Despite the fact that around 60 to 70 percent of Africans work in agriculture, countries on the continent continue to import large amounts of agricultural products and processed goods. This discrepancy has led to a discussion about the critical role of agriculture in driving Africa's growth. Recently, CNBC Africa's Kenneth Igbomor spoke with Jennifer Blanke, Vice President Agriculture, Human and Social Development at the African Development Bank, to shed light on the significance of investing in agriculture and agro-processing sectors in Africa. The conversation also touched on the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) initiative. Blanke highlighted the untapped potential of agriculture in Africa, emphasizing that the sector presents a tremendous opportunity for growth and development. She noted that despite the agriculture sector employing a significant portion of the population, productivity levels remain low in many parts of the continent. This underutilization of resources underscores the need to enhance productivity and move up the value chain by processing goods locally. By focusing on agriculture, Africa can reduce its reliance on imports and create more job opportunities within the continent. As the African Investment Forum approached, road shows were held to generate interest across various sectors. Blanke mentioned that while agriculture projects may have smaller ticket sizes compared to other sectors like energy, they hold immense potential for impactful development. The importance of including agriculture in broader discussions at the forum was emphasized, as it aligns with the bank's mandate of fostering development in Africa. The conversation shifted to the role of women in agriculture and the need to empower them financially. Blanke discussed the AFAWA program, designed to provide women with access to fair-priced finance and training to support their business ventures. Recognizing women as a valuable asset class, the initiative aims to level the playing field in accessing financial resources for women-led agribusinesses. Addressing concerns about the scale of agriculture projects, Blanke stressed the transition towards more commercial agriculture in Africa. She highlighted ongoing efforts to establish special agro-industrial processing zones, which represent a significant step towards industrializing agriculture on the continent. By investing in infrastructure and processing facilities, Africa can modernize its agricultural practices and attract larger investments into the sector. Amid discussions about capital increases and allocation, Blanke highlighted the significance of the recent capital injection for agricultural development initiatives. The increase in funding will enable the African Development Bank to enhance its support for agriculture projects and attract additional financing over the next decade. This financial boost positions the bank to spearhead transformative projects that drive sustainable growth and create lasting impact across Africa. In conclusion, the dialogue with Jennifer Blanke underscored the pivotal role of agriculture in Africa's journey towards economic prosperity. By investing in agriculture and empowering women in the sector, Africa can unlock its potential, drive industrialization, and achieve sustainable growth that benefits its people and the continent as a whole.