MSMEs play crucial role in transforming food systems in Africa

Dar es Salaam. The 2024 Africa Agriculture Status Report, titled "Harnessing the Private Sector for Food Systems Transformation in Africa," highlights the critical role of micro, small, and medium-sized enterprises (MSMEs) in transforming Africa’s agrifood systems. Released by the Alliance for a Green Revolution in Africa (AGRA), the report offers an in-depth analysis of how MSMEs are driving agricultural productivity and economic development across the continent.

According to Dr. Agnes Kalibata, AGRA’s President, MSMEs are central to reshaping Africa's food systems. These enterprises manage around 85% of the continent's agrifood value chains, making them essential contributors to food security and economic growth. The report emphasizes the importance of collaboration between governments, development partners, and the private sector to support MSMEs and promote sustainable development.

The report showcases success stories from several African nations. For example, Malawi’s groundnut industry has expanded due to investments in improved seed varieties and processing technologies. Similarly, Nigeria and Ghana have revitalized their cocoa and maize sectors through modern farming techniques and digital platforms like AgroCenta, which enhance market access for farmers. These initiatives highlight a growing trend of integrating smallholder farmers into larger value chains, ultimately improving rural livelihoods and boosting food security.

Despite these successes, MSMEs still face significant challenges, including poor infrastructure, limited access to finance, and regulatory hurdles. The report recommends targeted investments in infrastructure such as roads, electricity, and storage facilities, as well as improved financial access and simplified regulatory frameworks. It also underscores the role of agro-industrial parks as a solution to overcome infrastructure gaps and support the growth of agrifood systems.

In conclusion, the report calls for coordinated efforts to empower MSMEs, unlock new growth opportunities, and drive sustainable food systems transformation in Africa. These enterprises are vital to job creation and ensuring food security across the continent.