Harnessing Africa's agricultural potential

Africa's agricultural landscape is facing numerous challenges, from droughts impacting supply chains to the inefficiencies in intra-Africa trade. In a recent interview on CNBC Africa, M.D. Ramesh, President and Regional Head of South and East Africa at Olam International, shed light on the company's efforts to navigate these obstacles and harness the continent's agricultural potential. With a presence in 70 countries, Olam International plays a pivotal role in the agricultural sector, operating from seed to shelf. Ramesh emphasized the importance of addressing the impacts of climate change, such as the drought in southern Africa, which has significantly affected food commodities like maize. To mitigate these challenges, Olam International leverages its global network to import essential commodities and bridge supply gaps. However, Ramesh highlighted the critical need for Africa to achieve self-sustainability in agriculture and become drought-proof. The continent currently faces a $40 billion deficit in agricultural commodities, showcasing the untapped potential waiting to be unlocked. One strategy proposed by Ramesh is to enhance intra-Africa trade, which currently stands at a mere 9% of total African trade. By improving infrastructure, connectivity, and reducing wastage, Africa can maximize its agricultural output and address food shortages within the continent. Ramesh underscored the importance of tailored strategies for each country, considering factors like language, taste preferences, and market dynamics. The goal is to empower local farmers by providing them with essential resources, financial support, and access to markets. Olam International works closely with over two and a half million farmers across Africa, offering pre-financing to ensure the timely production and purchase of agricultural products. This approach not only secures markets for farmers but also enhances their yield potential, which currently operates at a mere 22% of its capacity compared to Asian countries. Ramesh highlighted the vast opportunity for growth in Africa's agricultural sector, urging for collective efforts to uplift farmers and enhance productivity. The interview concluded with optimism for the future of African agriculture, emphasizing the need for sustained collaboration and innovative solutions to unlock the continent's vast agricultural potential.