Africa has long been associated with currency devaluation, poverty, and food insecurity. However, there is a growing potential for the continent to transform its agricultural sector and achieve economic growth through regenerative agriculture practices. This sustainable approach to farming can revolutionize the way agriculture is practiced in Africa by improving soil health, increasing biodiversity, and reducing environmental impacts while producing food. The benefits of regenerative agriculture extend beyond just farming and include creating new industries and jobs through the production of biofuels and bioplastics.
According to the African Development Bank, the biofuels sector in Africa could create up to 880,000 jobs by 2030. Additionally, the economic benefits of restoring degraded land can range from $30 to $700 per hectare per year, according to a report by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services.
However, despite the many benefits of regenerative agriculture, there are still significant challenges to overcome. One of the biggest obstacles is the lack of access to finance and markets for smallholder farmers. Many African farmers lack access to credit, making it difficult for them to invest in regenerative agriculture practices. In addition, many farmers lack access to markets, which can make it difficult to sell their crops and earn a living.
To overcome these challenges, governments, NGOs and industry can play an important role in providing financing and creating markets for regenerative agriculture products. This can include providing credit to smallholder farmers and investing in infrastructure to improve market access. Governments can also incentivize the adoption of regenerative agriculture practices through policy measures such as subsidies and tax incentives.
Another area where improvement is needed is in the adoption of regenerative agriculture practices. While many smallholder farmers in Africa already practice some form of regenerative agriculture, there is still a need for greater awareness and education on the benefits of regenerative agriculture and how to implement it effectively. Governments and NGOs can help address this by providing training and technical assistance to farmers.
Finally, there is a need for greater research and development in regenerative agriculture in Africa. This can include developing new crop varieties that are better suited to regenerative agriculture practices, as well as developing new technologies and tools to support regenerative agriculture. Governments and industry can play an important role in funding research and development in regenerative agriculture.
Africa, with the fastest growing population in the world, holds great promise as a large, lucrative territory for global and African-based companies with aspirations to expand their footprint and open the employment basket, but it has become the fluid playing field for restrictive trade and rigid business models that haven’t’ yielded enough success. the poorest people across various countries carry the heaviest burden and are spending more and more of their income on food, which has been observed in price hikes seen in basic commodities such as maize, bread and vegetable oil. Therefore, soaring costs will continue to create economic stagnation, boosting inflation and denting competitiveness with global powers, unfortunately, sending a supply chain shock that affects neighbouring African countries.
Despite these challenges, the potential benefits of regenerative agriculture in Africa are significant. The value proposition of Africa has been based almost entirely on demographics, large formal and informal workforces as well as environmentally suitable crop-yield – ignoring its significance will inevitably offer less attractiveness for foreign investors. There has been an expectation of an embedded and growing middle class that will leverage Africa’s value which is arguably yet to materialise and until it does, regenerative agriculture will remain hamstrung.
By improving soil health and increasing yields, regenerative agriculture can help increase agricultural productivity, which can in turn increase rural incomes and contribute to poverty reduction. In addition, regenerative agriculture can create new economic opportunities by providing raw materials for new industries such as the production of biofuels and bioplastics.
Regenerative agriculture can also contribute to economic growth by reducing the environmental impacts of agriculture. By sequestering carbon dioxide from the atmosphere, regenerative agriculture can help mitigate the impacts of climate change, which can have significant economic costs. In addition, by reducing the need for expensive inputs such as fertilizers and pesticides, regenerative agriculture can help reduce the costs of farming, making it more profitable for farmers.
In conclusion, the economic benefits of regenerative agriculture in Africa are significant and cannot be ignored. By increasing farm profitability, creating new jobs and industries, and restoring degraded land, regenerative agriculture has the potential to contribute to economic growth and poverty reduction in Africa. As such, governments and other stakeholders should prioritise the adoption and promotion of regenerative agriculture practices in Africa to realise these benefits.
Contact:
Nestlé East and Southern African Region (ESAR)
Mota Mota
Head: External Communications
Tel: +27 72 206 9015
Email: [email protected]
About Nestlé
Nestlé is the world’s largest food and beverage company. It is present in 187 countries around the world, and its 291,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality for everyone, today and for generations to come. Nestlé offers a wide portfolio of products and services for people and their pets throughout their lives. Its more than 2,000 brands range from global icons like Nescafé or Nespresso to local favourites like Ricoffy. Company performance is driven by its Nutrition, Health, and Wellness strategy. Nestlé is based in the Swiss town of Vevey where it was founded more than 150 years ago