Secretary general of the African Continental Free Trade Area (AfCFTA) Wamkele Mene issued a clarion call for Africa to ditch its heavy reliance on imported grain, highlighting the untapped potential of domestic producers like Zimbabwe, Ethiopia, and Uganda to ensure food security.
Mene was speaking during the Alliance for a Green Revolution in Africa sessions at the World Economic Forum that comes to an end today. He said the continent’s significant food market, with $50 billion in annual imports, is highly fragmented.
Important to realise Africa’s potential
“A major hindrance to intra-African trade is the high tariffs on agricultural products. The AfCFTA agreement seeks to address this by eliminating these tariffs, thereby enhancing intra-continental trade.
“Digitization presents a transformative opportunity for Africa’s agricultural sector impacting the broader economy and enhancing overall efficiency and productivity,” he said.
According to the World Bank, Africa could see the figure on agricultural imports increasing massively by 2030 to 1 trillion, something Mene said should not be allowed.
“Currently, Africa relies heavily on grain imports and the recent Ukraine-Russia war has significantly worsened the situation, causing a surge in staple food prices by up to 50% in certain countries. Despite having the potential to be self-sufficient in food production, Africa faces challenges.
“Embracing technology and innovations is crucial to address post-harvest losses, ultimately enabling the continent to reduce its dependence on imports and enhance food security,” he said.
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Creating sustainable value chains
In a landmark event at the high-level breakfast forum on the sidelines of the World Economic Forum in Davos, Mene unveiled the first-ever AfCFTA private sector action plan.
“This pioneering initiative brings together 12 industry giants, committing to transformative projects across four critical sectors such as automotive, agriculture and agro-processing, pharmaceuticals, and logistics and transport.
“Central to this action plan is the shared goals that align seamlessly with the objectives of the AfCFTA and agenda 2063. These include increasing value-added activities within the continent, creating sustainable and resilient value chains, and enhancing intra-African trade by reducing barriers and strengthening supply chains,” he said.
Mene said for agriculture, the plan aims to shift more value chain activities to the continent, enhancing local capacities and markets. “This comprehensive approach promises to transform the African economic landscape, making it more integrated, self-reliant, and globally competitive.”
Mene said with a combined value of $130 billion in all the sectors, these commitments mark a significant leap in realising the potential of intra-African trade and development.
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