Cape Town, May 9, 2013 – African Heads of State and Government, eminent persons and leaders of business attending the 23^rd WEF on Africa have been discussing the modalities of how to increase private-sector investment and financing for Africa’s agricultural development programme, the Comprehensive African Agricultural Development Programme - CAADP.

They’ve been meeting at the Grow Africa Investment Forum, on the margins of the World Economic Forum on Africa in Cape Town.

Chief Executive Officer of the New Partnership for Africa’s Development (NEPAD) Agency Dr Ibrahim Mayaki, pointed out that CAADP provides key national level systems and capacity. This should be the scope within to advance enhanced private sector financing for CAADP.”

The Forum, which opened on Wednesday, was established in 2011 by the African Union Commission (AUC), NEPAD and World Economic Forum with other partners, to mobilise private-sector investment aligned to CAADP and country priorities.

CAAPD is the flagship programme of the AU and NEPAD. Its objective is to increase public financing in agriculture by a minimum of 10 per cent of national budgets and to raise agricultural productivity by at least 6 per cent.

Speaking on the role of Grow Africa for increased CAADP investment, Dr Mayaki acknowledged that “the Grow Africa countries have made agricultural transformation a priority. It is encouraging to see companies respond concretely and apply their knowledge, finance and market access in a way that will drive Africa's development.”

African Union Commission Chairperson Dr Nkosazana Dlamini-Zuma said “Africa is on the road to prosperity. African Agriculture is the true driver of economic growth. But we need the private sector to kick-start this process.”

With 2014 being Africa’s Year of Agriculture and Food Security, Dr Dlamini-Zuma called on the private sector to play a vital role in fulfilling the dream of a prosperous and peaceful continent, through greater investment into agriculture.

The Presidents of Benin, Malawi and Ghana, as well as other African government ministers reported on the progress to date and opportunities in the eight Grow Africa member countries - Burkina Faso, Ethiopia, Ghana, Mozambique, Nigeria, Rwanda and Tanzania.

President Yayi Boni of Benin said that Agriculture had amplified his country’s economy. “CAADP is our framework and reference point for agricultural development. It is a new Africa that is speaking today, an Africa that is ensuring food security on the continent,” said President Boni.

Nigerian President Goodluck Jonathan reiterated Nigeria’s commitment to increase food production and create jobs through technology uptake, processing, strengthening value chains from farm to fork and developing an enabling environment for private-sector investment.

“Malawi is prioritising private-sector investment into agriculture, so as to empower women and small-holder farmers as they can drive change on the continent. Our fertiliser production programme has helped to grow more maize for wealth creation and three million Malawians will now grow maize and other crops. The private sector is welcome to Malawi” to support these programmes,” said the country’s President Joyce Banda.

Vice-President of Ghana Kwesi Amissah-Arthur reported on high growth rates and measures taken to incentivise agricultural investment in his country. There was need for more investment in agricultural infrastructure.

Since ten years of CAADP’s implementation, agricultural growth has spread to several African countries. The establishment of Grow Africa as multi-stakeholder partnership has marked a shift in private-sector investments in African agriculture as a growing group of companies commit to creating economic opportunity for smallholder farmers and improving food security.

In 2012, Grow Africa partners mobilised over USD 3.5 billion in new investment commitments, which have to date engaged over 800,000 farmers across eight African countries, with USD 300 million in sales from the farmers fed into the market system.

At the end of the Forum, African Heads of State and Government agreed that agriculture investment has a substantial impact on the continent’s economic growth, uplifting small-holder farmers out of poverty, empowering women and eventually transforming Africa.

Photos courtesy of Clare Louise Thomas