scholarly journals Revolutionising agricultural finance in Africa: opportunities and challenges

2013 ◽  
Vol 11 (1) ◽  
pp. 193-212
Author(s):  
Busani Moyo

Africa needs business models that are capable of bringing affordable, life-changing products and services in order to reduce or even eliminate poverty. These business models through appropriate and responsible funding must, as a matter of necessity, create jobs and lead directly to economic growth in Sub-Saharan Africa (SSA). This study therefore provides a detailed analysis of the different types of major agricultural financial initiatives in Africa relating them to the problems faced by small farmers in the region. We also look at innovative finance schemes that are also making inroads in the continent like patient capital, agriculture pull mechanisms, value chain financing as well as Sovereign wealth funds. We argue that these innovative schemes can make a difference in helping innovative business models that address poverty see the light of day. Thus policies that protects farmers from natural risks like drought and floods, encourage the proliferation of donors, philanthropic organizations as well as the creation of strong linkages and cooperation among all those involved in agricultural value chains are important for the development of Africa’s agriculture.

2016 ◽  
Vol 53 (2) ◽  
pp. 269-287 ◽  
Author(s):  
CATHERINE W. KILELU ◽  
LAURENS KLERKX ◽  
CEES LEEUWIS

SUMMARYRecent literature suggests that to make value chains in changing agrifood systems in sub-Saharan Africa more inclusive, intermediary institutions should foster coordination. The hub concept has been applied as such an intermediary institution that coordinates advisory services, input supply and smallholder access to markets. This study unravels hub coordination in smallholder dairy in Kenya, conceptualising the hub as a mix between a broker of relationships, a one-stop-shop for services and a cluster of producers and service providers, enabling horizontal coordination (between smallholders) and vertical coordination (between smallholders and value chain actors and service providers). Findings indicate that, in resolving challenges that limit smallholders’ integration in value chains, synergies emerged as the hub combined different types of horizontal and vertical coordination. This was done by simultaneously organising clusters of farmers and input and service providers (clustering role) and actively facilitating delivery (broker and one-stop-shop role), where the hub structure stimulated the matching of demand (better articulation) to supply (better organised access). However, tensions emerged in the combination of horizontal and vertical coordination as farmer organisations as hub operators had to balance a role as an honest broker between farmers with the intent of enhancing collective action and as a business-oriented entity which resulted in the exclusion of some farmers who cannot deliver the quantity and quality required to minimise coordination costs. Given these tensions and capacity problems of farmers’ organisations, complementary intermediary arrangements may be necessary to fulfil some coordination roles.


2013 ◽  
Vol 56 (3) ◽  
pp. 77-100 ◽  
Author(s):  
Michal Lyons ◽  
Alison Brown ◽  
Zhigang Li

Abstract:This article analyzes the value chain for Chinese manufactured goods such as garments and textiles sold in sub-Saharan Africa. It explores the opportunities for Africans with small, private businesses in the export trade from China, the potential for long-term business development, and how strategies of engagement have changed over time. It finds that the value chains for low-cost goods vary. There is great diversity of entry levels and opportunities for socioeconomic mobility, and traders evolve diverse strategies to obtain and defend their position in the chain. These findings are discussed in terms of understandings of international value chains, the informal economy, and African economic development strategies.


2020 ◽  
Vol 5 (1) ◽  
pp. 18-28
Author(s):  
Andries Francois Geldenhuys ◽  
Oluseye Samuel Ajuwon ◽  
Michael Graham

This study reviews the theoretical literature concerning the resource curse as it pertains to the impact of natural resources upon economic growth and corruption in sub-Saharan Africa (SSA), and how the Extractive Industries Transparency Initiative (EITI) membership can be of help. The EITI is an international standard promoting open and transparent resource governance through disclosure mechanisms in the resource value chain. Corruption has been associated with less-than-average economic growth in resource-rich countries. This research concludes that the theoretical review found that through the dissemination of disclosures in the natural resource sector, the EITI can potentially reduce the prevalence of corruption in implementing countries in SSA and it can address negative economic growth outcomes associated with resource abundance. However, there is not much evidence empirically needed to suggest this.


Author(s):  
Fanen Terdoo ◽  
Giuseppe Feola

Abstract: Rice is one of the most important food crops in sub-Saharan Africa. Climate change, variability, and economic globalization threaten to disrupt rice value chains across the subcontinent, undermining their important role in economic development, food security, and poverty reduction. This paper maps existing research on the vulnerability of rice value chains, synthesizes the evidence and the risks posed by climate change and economic globalization, and discusses agriculture and rural development policies and their relevance for the vulnerability of rice value chains in sub-Saharan Africa. Important avenues for future research are identified. These include the impacts of multiple, simultaneous pressures on rice value chains, the effects of climate change and variability on parts of the value chain other than production, and the forms and extent to which different development policies hinder or enhance the resilience of rice value chains in the face of climatic and other pressures.


2019 ◽  
Vol 11 (10) ◽  
pp. 2885
Author(s):  
Carl C. Anderson ◽  
Manfred Denich ◽  
Kai Neumann ◽  
Kwadwo Amankwah ◽  
Charles Tortoe

Food security in Sub-Saharan Africa (SSA) is dependent on complex networks of interconnected actors and the flows of resources (biomass, capital) and information among them. However, the degree to which actors and value chains of different crops are in fact interconnected and their current systemic influence on food security are unclear. Therefore, the concept of “value webs” to better capture the complexity within the networks emerges. Biomass-based value webs of selected crops in Ghana, Nigeria, and Ethiopia are modeled using the systems analysis software iMODELER and by eliciting factors as well as their interconnections through participatory stakeholder workshops. Furthermore, a generic model was created compiling the country models to identify overarching system dynamics with supporting and hindering factors impacting food security in SSA. Findings from the country models show highly complex value webs, suggesting that the predominant value chain approach may oversimplify actual structures and resource flows in real life settings. However, few interconnections within the value webs link the actors and flows of different crops, contradicting predictions emerging from other research. Results from the generic model allow for a critical reflection on the relation between value web dynamics and food security policy in SSA. Current national and regional policy trends targeting market integration, mechanization, and reduction of post-harvest losses are supported by model results.


Author(s):  
Boubacar Diallo ◽  
Fulbert Tchana Tchana ◽  
Albert G. Zeufack

2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Shuaib Lwasa

Africa’s urbanization rate has increased steadily over the past three decades and is reported to be faster than in any other region in the world . It is estimated that by 2030, over half of the African population will be living in urban areas . But the nature of Africa’s urbanization and subsequent form of cities is yet to be critically analyzed in the context of city authorities’ readiness to address the challenges . Evidence is also suggesting that urbanization in African countries is increasingly associated with the high economic growth that has been observed in the last two decades . Both underlying and proximate drivers are responsible for the urbanization, and these include population dynamics, economic growth, legislative designation, increasing densities in rural centers, as well as the growth of mega cities such as Lagos, Cairo and Kinshasa, that are extending to form urban corridors . With the opportunities of urbanization in Sub–Saharan Africa, there are also challenges in the development and management of these cities . Those challenges include provision of social services, sustainable economic development, housing development, urban governance, spatial development guidance and environmental management, climate change adaptation, mitigation and disaster risk reduction . The challenge involves dealing with the development and infrastructure deficit, in addition to required adaption to and mitigation of climate change . This paper examines the current state of urban management in Africa .


2021 ◽  
Vol 38 (1) ◽  
pp. 57-72
Author(s):  
Justin Barnes ◽  
Anthony Black ◽  
Chelsea Markowitz ◽  
Lorenza Monaco

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