According to the Africa Growth report, most investment to date has been made by companies from within Africa, with half of all invested funds to date directed to Nigeria.
The Grow Africa Annual Report also identifies a number of innovative best practices, designed to assist African farmers looking to scale up their businesses.
Some promising models in this area, highlighted in the report, are new public sector bodies such as the Agricultural Transformation Agency in Ethiopia, as well as frameworks to attract private sector investment into specific regions, including Tanzania’s Southern Agricultural Growth Corridor (SAGCOT).
Investment commitments by Grow Africa – a programme established by the World Economic Forum, NEPAD and the African Union to accelerate the transformation of African agriculture – partner companies doubled to $7.2 billion in 2013.
Continually, the World Economic Forum has underpinned and attracted the right partners and investment for programmes in Africa and its development.
Proportionately, of the $7.2 billion in new commitments, Grow Africa partners have to date already invested $970 million. This directly has led to a modeled creation of 33,000 new jobs (some sustainable) and the assistance of 2.6 million smallholder farmers throughout the continent.
The increase in investment confirmations outlined in the report is consistent with a broader growth trend in African agriculture which, according to the World Bank, will triple in size by 2030 to become a $1 trillion industry.
“The 2013 Grow Africa report shows good progress on many fronts, but overall, it shows that the level of investment, and the speed and reliability of reforms to the sector remain too slow to be truly transformative for Africa’s smallholders,” said Ibrahim Assane Mayaki, Chief Executive Officer of the NEPAD Planning and Coordinating Agency, one of the three Grow Africa co-founders.
“The year 2014 is a clarion call for concerted efforts by governments, farmers, development partners and private sector players to sustain CAADP momentum,” added Rhoda Peace Tumusiime, Commissioner for Rural Economy & Agriculture at the African Union Commission
“Grow Africa’s focus for 2014 will remain on creating better linkages between stakeholders and projects to accelerate the speed of return on investment,” CEO Arne Cartridge said, adding that nearly 90% of rural youth who work in agriculture contribute up to one third of Africa’s GDP and we [Africa] cannot afford to lose this growth driver.
The 24th World Economic Forum on Africa is taking place in Abuja, Nigeria, on 7-9 May under the theme Forging Inclusive Growth, Creating Jobs. (VENTURES AFRICA)
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