Speakers discuss unlocking Africa's agriculture potential at conference

The continent’s contribution to improving food security across the world was discussed at length at the recent Agri Investment Conference, 

- Glenneis Kriel.

For years, people have been talking about Africa’s potential to improve global food security. Various role-players discussed making this a reality at the Africa Agri Investment Indaba, recently held in Cape Town.

The high risk involved in primary, and especially smallholder production, was identified as one of the biggest barriers to financing, and in effect the development of Africa’s agricultural potential at the gathering.

The situation was worsened by the impact of the COVID-19 pandemic, which had led to enormous fiscal spending globally and subsequent high inflation that governments were trying to curb with interest rate hikes, Chris Hart, executive chairperson of the Impact Investment Group South Africa, said during his welcoming address.

The situation has increased agricultural production costs and made it more difficult for farmers to repay loans, while the interest rate shocks have also led to the fall of banks, and made it more expensive and difficult to source resources to finance projects.

Simultaneously, food security has come under threat, with shortages of certain food types occurring sporadically even in developed countries, while logistics is being challenged by the green movement, which is leading to various other ramifications in the supply chain.