Erik Odendaal talks agrarian policy.
The majority of countries in Africa are neither net exporters or net importers, technology developers, manufacturers or service providers. So, is there a missed opportunity?
If we are to talk of Africa’s agrarian developmental needs, we should first look at the global picture. In simple terms, most countries fit into one of two categories: net exporters of agricultural produce and net importers of agricultural produce. Taking a look at the global commodities movers and shakers: the United States is by far the biggest player and, depending on what commodities you are looking at, followed by either South America or the European Union. An exception to this is China, who are currently net importers but are very rapidly seeing exponential growth in commodities output. Africa incidentally is neither an exporter nor importer1.
What do all the big net exporters have in common? They all have favourable governmental policy supporting their own respective industries. The United States, for example, has agricultural subsidy which supports primary production, very progressive agricultural technology, manufacturing and service sectors developing agricultural machinery, technology, chemicals and fertilisers. So not only is the United States producing the bulk of global commodities, which is then exported to the rest of the world, and mostly on uncompetitive terms (commodity dumping), it is dominating the global manufacturing and service sectors exporting home developed technology, goods and services.
What we are seeing are highly developed vertical and lateral integrations by a few countries controlling food production and associated technology, goods and services globally. It can also be assumed that net exporters produce commodities at below the global market value, because they can derive greater value from exported technology, goods and services. In the case of net importers like China, Gross Domestic Product (GDP) is obtained through an exchange of trade in non-commoditised technology, goods and services, such as cars, computers and clothing2.
The majority of countries in Africa are neither net exporters or net importers, technology developers, manufactures or service providers. So, is there a missed opportunity?
Africa’s international commodity trade position has weakened in recent years and is now leaving many countries in Africa exposed to cheap imported commodities and expensive imported technologies, good and services.
To compound matters, continental agrarian policy is not geared towards harmonising the developmental needs of both large scale commercial and small-scale farmers. Recent policy has been partly ‘shoe-horned’ to fit stringent conditions set by ‘donor’ agencies on a wide range of policy, financial and trade matters3.
As a result, many countries are not able to lever the significant potential out of agriculture, an ‘anchor industry’, allowing wider grassroots development and subsequently wider development of associated technologies, goods and services sectors.
Collectively these factors are increasingly undermining development more so considering the accelerated rate of development in the Americas and Europe. If Africa as a whole is to develop sustainable agri-related sectors, achieve real economic growth and food security, credence must be applied to wider policy needs. Funding small scale subsistence farming programs alone is not going to relieve Africa of its looming food security crisis. It’s only going to perpetuate it.
Africa desperately needs agrarian policy fit for the 21st century, supported by strategically directed investment across the value chain, which will allow Highest and Best Use (HBU) to be achieved. Africa also needs agrarian policy that creates multi sector value for not only aging rural populations, but also young urbanising populations.
Erik Odendaal is a rural Chartered Surveyor (MRICS) and Chartered Forester (MICFor), and above all Zimbabwean. Erik, uses his experience to push the sustainable development agenda for land based industries, including agriculture, forestry and renewable energy. Erik is motivated by the need for socio-economic development in southern Africa.
1 Foreign Agricultural Service/USDA 32 Global Market Analysis
