Food Insecurity in Africa- the Role of Agribusiness

Abstract

Agribusiness is seen as a panacea to the challenge of food insecurity in Africa. However, the agribusiness productivity paradox abounds with structural transformation within the agribusiness ecosystem in Africa since the structural adjustment program in most Africa countries creating more inequalities. Insistence on commercialization of smallholder’s production in Africa is at the heart of new agribusiness models, yet the heterogeneity of smallholder farms occasioned by geographical, ecological, cultural, level of literacy, stage of economic development of African countries bring about difficulties in policy formulation and implementation to effectively support new agribusiness models in order to promote sustainable agricultural productivity which could in turn ensure attainment of food security. With the changes occasioned by introduction of digital technologies especially digital platforms and the attendant structural transformation, it has increasingly become important to explore different ways in which to change the perception of rural smallholder agriculture from what Dr. Akinwumi Adesina Calls zones of economic misery to Zones of Economic prosperity. Changing agriculture from a way of life, practiced by the old to a profitable economic activity embraced by people from all the generations. Agreeably, use of new technology could play a critical role but the rate of adoption of new technologies in Africa is low and of major concern to stakeholders especially due to inadequate capacity and skills of Africa human capital, inadequate development of infrastructure and other externalities. This study in general confirms the mixed blessing hypothesis developed by Stefan Pahl and Marcel Timmer (2020) where in one hand there are positive result while on the other a disastrous impact. In chapter two, new agribusiness models exhibit potential of ensuring food security if different enablers such as collaboration among all stakeholders is embraced while the downside becomes inevitable when disharmony exist especially in policy formulation and implementation. In chapter three, while digital platforms promise immense returns, the underdeveloped nature of digital infrastructure in Africa coupled with inadequate human digital skills among smallholders, new agribusiness models based on digital platforms will further alienate them leading to exacerbation of food insecurity. In chapter four, the structural transformation including development of global value chain within new agribusiness models, could lead to accessibility of food from other productive areas, however with unpredictable nature of emerging global issues such as covid19 food self-sufficiency is key. This dependence on the international food trade unfortunately vitiate food sovereignty aspect. In addition, many African countries that are not in the center of global production process will face challenges in terms of influencing global prices, therefore, negatively impacting on production capacity which may lead to food insecurity.