Net-food-importing Africa rich in agricultural opportunity

27th February 2015 By: Anine Kilian - Contributing Editor Online

Africa has large and rich agricultural resources, but is still the only net-food-importing continent in the world, which is problematic amid soaring grain prices worldwide and the global financial crisis, as African food security is seriously under threat, law firm ENSafrica China practice group executive head Kenny Chiu tells Engineering News.

He says the scale of agricultural activities in Africa is limited to areas where there is a high level of precipitation and, although the continent has substantial natural water resources, the main challenge is that they are concentrated in certain “pockets”.

“The lack of water infrastructure to gather and store water impairs Africa’s capacity to strengthen and improve agricultural production,” Chiu notes, adding that China can share its knowledge and experience with Africa to help formulate a long-term agricultural strategy.

This, he says, cannot be done in isolation – such a policy would be possible and feasible only through in-depth scientific research and technical analysis.

“I encounter several Chinese investors who are seriously considering tapping into agricultural investment in Africa. However, without credible feasibility studies and, most importantly, the necessary infrastructure to link the farming community to the market, it remains a challenge to many African countries,” Chiu explains.

He notes that, besides the lack of investment and in-depth research, inward challenges to industrialise farming in Africa include small-scale farmers lacking the knowledge and capital to industrialise their activities.

“Malaria, HIV/Aids [and most recently, Ebola] also affect productivity, with global warming and extreme weather among the other challenges that the African agriculture industry faces.”

Chiu points out that understanding the local climate and geographical conditions are essential and, in most instances, some degree of adaptation is required.

He explains that a long-term integrated approach – involving bioengineered seeds, modern mechanised farming, biomass energy, effective irrigation and supply chain management to ultimately industrialise Africa’s agriculture sector – should be considered.

“The aforementioned approach involves extensive capital investment and, until there is commitment on the part of African governments to provide policy certainty, it remains a challenge for potential investors to commit their capital to co-develop the farming sector on the continent,” he explains.

Chiu adds that Africa should take advantage of its water resources and unlock the potential of its fertile farmland.

“Water is a scarce resource that cannot be exported, but Africa could easily become the food basket of the world, provided African governments have the ambition and vision to implement what is necessary to create an enabling environment.”

Meanwhile, he explains that China has invested substantially in its own agriculture sector, focusing on using available resources, enhanced technology in animal and plant protein and bioengineering, as well as renewable energy. Subject to adaptation, these aspects, Chiu notes, could assist Africa in reinventing the wheel of agricultural development.

Chiu says African countries that have been selected for agricultural science and technology training, such as Uganda, Malawi, Burundi and Rwanda, are predominantly countries with favourable weather and abundant water resources.

“Training and support will probably derive from two streams, one being at a diplomatic and political level, where China could assist Africa with research through various exchange programmes and skills transfer,” he says.

Another stream of support could manifest in purely commercial terms between investors and local authorities.