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African leaders seek innovative methods to boost agriculture

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African authorities are seeking innovative methods to enhance funding for the agriculture industry in the continent and to improve the price and accessibility of fertilizers. This urgency arises from the recognition of the deteriorating condition of arable land in Africa.

Recent studies indicate that over 65% of agricultural land in Africa is currently experiencing degradation as a result of insufficient fertilizer utilization, soil erosion, and acidification. This alarming situation has raised concerns among leaders, as it poses a significant existential danger to the foundation of the continent’s economies, namely agriculture.

The Heads of State and government, along with the leaders participating in the Africa Fertiliser and Soil Health Summit in Nairobi this week, believe that increased funding and intra-Africa trade in fertilisers will be essential for sustaining agriculture across the continent.

The extent of land degradation in sub-Saharan Africa is a topic of ongoing debate. Conflicting perspectives exist regarding its regional and local scales, methodologies and reliability of indicators, and the effects of past and current degradation on food security, rural livelihoods, and the future of Africa.

“Fertiliser access and affordability must be improved. Financing tools such as trade credit guarantees, working capital, and targeted subsidies must be consolidated to reduce market distortions, reduce costs and strengthen input supply chains,” said the leaders in the Nairobi Declaration published on May 9.

“The need for regional cooperation on the issue of fertiliser and soil health is greater than ever before as opportunities for investment and great inter- and intra-regional trade are now significantly enhanced by AU member states’ adoption of the Africa Continental Free Trade Area (AfCFTA).”

“The majority of Member States are still over-dependent on imported fertilisers, especially non-phosphate-based fertilizers which expose Africa to external market shocks and price volatility,” they explained.

Based on data from the African Union, fertilizer utilization in Africa is significantly lower compared to other regions globally. The global average for fertiliser use is 135kg per hectare, however, in Africa, it is just 18kg. This is far lower than the aim of 50kg/ha set in 2006 at a conference in Abuja.

What’s more, “the recent global fertiliser crisis has disproportionately affected Africa, with a year-on-year decline of 25 percent in fertiliser consumption in 2022,” said the declaration.

“Recent global economic crises, compounded by supply chain disruptions from the Covid-19 pandemic and geopolitical dynamics, have worsened fertiliser affordability and availability, and disrupted agriculture, resulting in reduced acreage and lower yields,” Kenyan President William Ruto said in his address at the summit.

“We call upon the private sector to increase investments in Africa’s fertiliser industry and promote sustainable soil management practices.”

Private sector entities operating in agricultural production and fertiliser manufacturing assert that reducing the price of fertilisers to ensure accessibility for small-scale farmers is vital, although it is a challenge that they are unable to do single-handedly.

“Governments should relook tax policy for fertilisers and could remove some items to lower overall costs,” said William Ngeno, country representative in Kenya and Uganda for fertiliser manufacturer Yara International.

“Partnership in the building last mile access to fertiliser with private sector is crucial. Farmers need to access the fertiliser as close to them as possible.”

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Nigeria obtains $600 million international loans for agriculture

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To promote food security and rural development, the Nigerian government, through the Ministry of Agriculture and Food Security, has obtained more than $600 million in foreign agricultural loans in 2024.

A $134 million credit facility from the African Development Bank was acquired by the government to increase seed and grain production across the country, according to information on the ministry’s website.

“The Federal Government has secured a loan facility of $134m from the African Development Bank to help farmers boost seeds and grain production in the country,” the statement read.

The fund now stands at $634 million after the Federal Government obtained a $500 million loan from the World Bank under the Rural Access and Agricultural Marketing Project.

The project will encourage social and economic growth in rural regions while enhancing access to hospitals, schools, and agricultural centres. Its goal is to close the gap between rural communities and bigger markets.

According to Aliyu Abdullahi, Minister of State for Agriculture and Food Security, states must establish operational road funds and road agencies to receive RAAMP monies.

Aminu Mohammed, the RAAMP National Coordinator, emphasised the project’s emphasis on rural infrastructure:

“The primary objective of RAAMP is to improve rural roads and trading infrastructure to boost food production,” Mohammed said.

The initiative, already underway in 19 states, will distribute funds competitively according to socioeconomic factors, implementation preparedness, and state co-finance pledges.

By creating Rural Access Road Authorities, the project also aims to increase the representation of women in the transportation industry.

The World Bank will contribute $500 million in the second phase of RAAMP, with the federal and state governments contributing $100 million in matching funds.

Farmers throughout Nigeria have criticised the Federal Government’s agricultural initiatives as being selective and badly executed, despite its attempts to increase agrarian activity through mechanisation, irrigation infrastructure, and in certain circumstances, financial support.

Many contend that the programs mostly help well-connected people, leaving off smallholder farmers, who are the foundation of Nigeria’s agriculture industry.

La’ah Dauda, a farmer from Kaduna, called the initiatives “very selective,” adding that even the data is scarce. They only raise awareness in areas that they find appealing. If others are left out, how can you recruit new farmers?

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Nigeria’s November inflation rate hits 34.60%

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According to figures released by the statistics office on Monday, Nigeria’s inflation rate increased for the third consecutive month in November, rising from 33.88% in October to 34.60% in annual terms.

Following a brief period of respite in July and August, the naira devaluation and a string of rises in the price of petroleum have been blamed for the inflation spike that started in September.

The most populous nation in Africa is experiencing the worst cost-of-living crisis in decades as a result of these circumstances.

The central bank has hiked interest rates six times this year, for a total rise of 875 basis points, to counteract increasing inflation.

Due to price increases for basics such as rice, maize, bread, potatoes, and cooking oil, food inflation increased to 39.93% year over year in November from 39.16% the month before, according to the National Bureau of Statistics.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

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