AGRA on how smallholder farmers can adapt to new COVID-19 realities

Smallholder farmers in sub-Saharan Africa have been grappling with the challenges brought about by the COVID-19 pandemic. With uncertainty looming large and markets shrinking overnight, the Alliance for a Green Revolution in Africa (AGRA) is at the forefront of efforts to empower these farmers and steer the agriculture sector towards sustainable growth. Vanessa Adams, Vice President of Strategic Partnerships at AGRA, discussed the outlook for agriculture in Africa in a recent interview with CNBC Africa. Vanessa emphasized that the pandemic is far from over in Africa, with ongoing volatility expected due to COVID-19 and climate change-related disruptions such as erratic rainfall patterns and locust invasions. To combat these challenges, she underscored the importance of boosting cross-border trade and enhancing integration among African countries, particularly under the African Continental Free Trade Area initiative. Governments across Africa have been ramping up efforts to support smallholder farmers and ensure food security through transparent food balance sheets, strategic reserves, and improved financing mechanisms. Technology adoption and modernization have emerged as crucial factors in the sector's evolution. Vanessa highlighted the increasing significance of digitization, mechanization, and irrigation in enhancing agricultural practices. The pandemic has accelerated the adoption of technology, with a growing number of farmers embracing new tools and techniques to improve productivity. Private sector investments play a pivotal role in driving innovation and growth in agriculture. While there is a rising interest in impact investments and social entrepreneurship, the level of investment remains relatively low, with Africa receiving only 3% of global food and agriculture investments in 2019. AGRA is actively working to change perceptions around investing in the agriculture sector and mobilize investments to support farmer-led initiatives. Vanessa emphasized the need for a blended finance approach, combining risk guarantee facilities, patient capital, and transparency tools to attract more investments. The organization's platforms, such as the 'new value for her,' are empowering women entrepreneurs in the sector by providing investment opportunities ranging from $50,000 to over $5 million. As the agriculture sector continues to navigate the challenges posed by the pandemic, AGRA remains committed to fostering sustainable growth, empowering smallholder farmers, and driving private sector investments to transform the agricultural landscape in Africa.