Africa Research Institute

Waiting for a green revolution

Edition 0309. July 2009

Kigali, Rwanda – In a back street near the Rwandan parliament, the hand-painted sign of the ‘Vision 2020’ snack bar draws its inspiration from the national development plan. The patriotic gesture is timely: growing enough food is an urgent concern for the government of President Paul Kagame, and most of his African peers.

Vision 2020 aims to consolidate recent gains in food security by agglomerating myriad parcels of land into more productive large-scale farms. Smaller farmers will be encouraged by a policy of carrots and sticks – ‘zoning’, ‘monocropping’ and subsidised inputs – to cultivate only the most productive crops.

For the smallest subsistence farmers, there will be much less land. A policy of villagisation – Imidugudu – has encouraged some to re-settle in new rural ‘clusters’. Initially set up to accommodate returning Tutsi refugees, the new villages are touted as a catalyst for rural trade and alternative livelihoods.

The policy is not proved. Sceptics counter that without a parallel process of industrialisation, the pursuit of national self-sufficiency in food will push a rural underclass of marginal subsistence farmers deeper into poverty. An equivalent process in Asia, during the Green Revolution of the 1960s and ’70s, was driven by the migration of rural labour to new jobs in the cities and industry.

Proponents of a Green Revolution for Africa face a dilemma. Boosting agricultural productivity is a worthy and necessary goal. So, too, is the pledge of more help for smallholders, recently endorsed by the G8 group of industrialised nations. But with notable exceptions, many recent gains in food security coincide with rising rural poverty. For subsistence farmers, alas, the promise of ‘self-sufficiency’ often rings hollow.

Mark Ashurst, Director, Africa Research Institute

 

This edition of StoryLines, compiled from our digest of African newspapers, highlights recurring themes in the vexed debate over how to reform agriculture.

Several recent publications from ARI highlight winning strategies. Kenya’s Flying Vegetables by James Gikunju Muuru argues strongly for horticulture, exports and a free market. Feeding Five Thousand by Paul Chidara Muchineripi charts the success of indigenous finger millet in drought-prone Zimbabwe. Planting Ideas by Blessings Chinsinga and Aoiffe O’Brien makes the case for subsidised fertiliser to avoid recurrent famine.

Copies of all three publications are available free on request. Ditto for Nursing The Future, Angela Nguku’s “case story” of an innovative computer-based scheme to improve the clinical skills of nurses in Kenya’s busy hospitals and clinics.

Finally, we hope you will join us in extending a warm welcome to Edward Paice, acclaimed author and historian, who joins ARI as our new Managing Editor from September.

 

G-8 leaders pledge US$20 billion for poor
Monday 13th July 2009

The G8 group of industrialised nations pledged US$20 billion for agriculture in developing countries over the next three years. The announcement was made at the end of the G8 summit held in Italy from July 8th to 10th. A joint statement released by the G8, partner countries, and international organisations, emphasised the importance of agriculture to food security and spoke of "an urgent need for decisive action to free humankind from hunger and poverty." The aid package, which was US$5 billion higher than expected, was welcomed by the United Nations (UN) and some anti-poverty groups, but many aid agencies expressed scepticism. They pointed to G8 failures to honour commitments made at the Gleneagles summit of 2005 and expressed concern that the promised funds would be diverted from other development projects. "In the last minute of extra time, it looks like a surprise goal was scored for the world's farmers and the world's hungry," said Bono, U2 frontman and co-founder of the anti-poverty campaign group ONE. If there is real new money backing these serious ideas, then it is a great start. "Any new money would help poor farmers to buy seeds, fertiliser and tools", according to Adrian Lovett, a spokesman for Save the Chilldren. The funds are also expected to be spent on rural infrastructure, such as roads and irrigation, and on ensuring better property rights for small farmers.

Source: Business Day


Related Stories:

Africa’s first chain coffee factory opens

Friday 17th July 2009

Africa’s first coffee processing factory was officially opened in Uganda, at a ceremony attended by President Yoweri Museveni. The factory, owned by Good African Coffee, has the capacity to roast and pack three million kilograms of raw coffee beans each year. more

Agribusiness - the way out of poverty

Tuesday 7th July 2009

USAID, the American state aid agency, will commit US$35m to improve rural livelihoods in northern Uganda over the next five years. more

Annan seeks funding for Africa

Wednesday, 28th February 2009

Former UN secretary-general Kofi Annan called for an expansion of credit facilities made available to small farmers in Africa, as a means of improving food security on the continent. more


Country averts food crisis


Saturday, 6th December 2008

The Kenyan government introduced price controls on maize, in an attempt to help low and middle income households. more


Hoarding affects food supply

Tuesday, 12th August 2008

Maize prices trebled in Malawi between January and July 2008 and are set to rise further, despite predictions of high yields and food surpluses for the current year. more

Now maize exports banned


Monday, 13th October 2008

The Kenyan government banned exports of maize indefinitely and re-opened all 140 national and cereal produce board (NCPB) depots and buying centres, in an attempt to counter the threat of food shortages. more




Africa Research Institute is a non-partisan think tank based in London and founded in February 2007. Our mission is to draw attention to ideas which have worked in Africa, and to identify areas where new ideas are needed. For more information please visit our website www.africaresearchinstitute.org


From our Archive:

Africa’s first chain coffee factory opens

Friday 17th July 2009

Africa’s first coffee processing factory was officially opened in Uganda, at a ceremony attended by President Yoweri Museveni. The factory, owned by Good African Coffee, has the capacity to roast and pack three million kilograms of raw coffee beans each year. It has already begun to sell directly to Waitrose, Tesco and Sainsbury’s in the UK, and Shoprite Checkers in South Africa. Previously, Good African Coffee sent raw coffee beans to be roasted and packed in Ireland, before delivery to UK supermarkets, adding 45% to transport costs. Speaking at the opening ceremony, President Museveni said: “The total global coffee business is US$144 billion. Out of this, all the coffee growing countries, including Brazil and Columbia, get only US$15 billion. The rest goes to importing countries.” On the international market, raw coffee beans sell for about US$1 per kilogram: once processed they sell for around US$15 per kilogram. Andrew Rugasira, chairman and founder of Good African Coffee said: “We are proud to be the first African company in an African country to be retaining the value addition at source”. Over 14,000 smallholder farmers from Kasese in western Uganda are growing Arabica coffee for the factory, receiving 30%-40% above the international market price. The factory cost about US$1 million to establish, funded largely by loan from the Ugandan government due to be paid back with interest by 2013.
Source: The New Vision


Agribusiness - the way out of poverty

Tuesday 7th July 2009

USAID, the American state aid agency, will commit US$35m to improve rural livelihoods in northern Uganda over the next five years. The new Livelihoods and Enterprises for Agricultural Development (LEAD) project aims to increase productivity, competitiveness and the trading capacity of small farmers. Susan Corning, director of LEAD, said the initiative would target 600,000 households by the end of 2013: “Our emphasis is on smallholder producers in partnership with agro input dealers and agro-processors." LEAD has partnered with Mukwano Group, a food production and processing company, to increase sunflower seed and maize production. Sunflower seed production had risen from 5,000 to 40,000 tonnes over four years, and is expected to reach 50,000 tonnes within a further 12 months. LEAD provides training for farmers in pre-planting and planting techniques, post-harvest management and storage. Dorcus Adul, a LEAD field officer said that people had felt a difference in their lives: “They can see increase in their farm produce because they are planting the right seeds at the right times and in the right way."
Source: The East African Business Week


Annan seeks funding for Africa

Saturday 28th March 2009

Former UN secretary-general Kofi Annan called for an expansion of credit facilities made available to small farmers in Africa, as a means of improving food security on the continent. Access to finance remains the biggest obstacle behind low productivity in African agriculture. Farmers cannot afford basic inputs such as seeds, fertilisers and small-scale irrigation equipment. Yields in Africa are a quarter of the global average, resulting in frequent food shortages and widespread hunger. “While credit is frozen worldwide, Africa cannot wait for a thaw” said Annan in a statement by the Alliance for a Green Revolution in Africa (AGRA). Annan’s words come shortly after the signing of a memorandum of understanding between AGRA and Standard Bank in Accra, Ghana. The partnership between AGRA and Standard Bank signals the creation of a new US$100 million investment fund - the continent’s largest aimed specifically at boosting productivity of smallholders – to enable farmers in Ghana, Mozambique, Tanzania and Uganda to obtain loans to invest in farm inputs. “Programmes such as this, which increase productivity of smallholder farmers and help to catalyse an African green revolution, will ultimately enable Africa to achieve food security and stability, and thus improve the entire global outlook”, said Jacko Maree, (president of AGRA and) group chief executive of Standard Bank.
Source: The Nation


Country averts food crisis

Saturday, 6th December 2008

The Kenyan government introduced price controls on maize, in an attempt to help low and middle income households. Government-branded maize flour will retail at Ksh52 (US$0.68) per 2kg packet, while commercially branded maize will sell for Ksh72 (US$0.95) per 2kg packet. The National Cereals and Produce Board (NCPB) will purchase maize from farmers at Ksh1,950 (US$25.8) per 90kg bag. No other individual or company will be allowed to buy more than 10 bags from farmers. The government will supply cereal millers with maize at a price of Ksh1,750 (US$23.2) as a means of ensuring commercial brands are sold at Ksh72 per 2kg. Cereal millers, vetted by the ministry of agriculture and registered by the NCPB, agreed to offer 30%-40% of their milling capacity to the NCPB at a cost of Ksh200 (US$2.6) per 90kg bag of maize. The government also intends to import further reserves of five million 90kg bags.
Source: East Africa Business week


Hoarding affects food supply

Tuesday, 12th August 2008

Maize prices trebled in Malawi between January and July 2008 and are set to rise further, despite predictions of high yields and food surpluses for the current year. The unseasonably high prices have been attributed to hoarding by traders keen to sell their harvests later in the season, when household supplies are expected to diminish and demand is at its peak. Prices are normally at their lowest following Malawi's main harvest, between March and July, then tend to rise from December, when household stocks are depleted. The USAID-funded Famine Early Warning System (FEWS-NET) warned that speculation that Malawi would encounter localised food shortages had led to “heavy competition for maize purchases and an increase in maize prices compared to what is normally expected at this time of the season". Grace Mhango, president of the Grain Traders Association, also cited panic buying as a cause of high prices. "It's true that as traders we have contributed to the rise in maize prices. Some areas in the country do not have maize, yes, but we are not in a crisis yet to justify the high grain prices," she said. The government has threatened to clamp down on hoarding by traders. "We are suffering because of a liberalised economy, but we won't sit back and watch traders dictating prices to us,” said Frank Mwenifumbo, deputy agriculture and food security minister, “We are working on drastic measures that will make maize a protected produce and a property of the Malawi government.
Source: IRIN


Now maize exports banned

Monday, 13th October 2008

The Kenyan government banned exports of maize indefinitely and re-opened all 140 national and cereal produce board (NCPB) depots and buying centres, in an attempt to counter the threat of food shortages. William Ruto, minister of agriculture, ordered that “no person shall export any quantity of maize…until such a time when these regulations shall be amended or revoked. Traders who engage in anything to the contrary will face full force of the law”. The ban is intended to prevent export of local harvests to other regions and other markets: “Our priority is to feed Kenyans...business follows later," said Mr Ruto. The government-run NCPB will buy maize from farmers at Ksh1,700 (US$22) per 90kg bag, compared with a current market price of Ksh2,200 (US$29) per bag. The government hopes to stabilise the price of maize in Kenya, but attempted to reassure farmers that imported maize would not affect the wholesale prices guaranteed by the NCPB.
Source: The Nation



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