The President and Chief Executive of the Africa Finance Corporation (AFC), Samaila Zubairu, has underscored the need for collective action to address Africa’s annual $50 billion expenditure on food imports. He emphasized that these imports primarily consist of essential staples such as cereals, oils, and grains.
Speaking at the Africa Business Forum 2025 in Addis Ababa, Ethiopia, under the theme “From Potential to Prosperity: Activating Regional Value Chains,” Zubairu highlighted the economic and strategic challenges posed by this dependency on foreign food supplies.
According to him, Africa’s high food import bill is concerning not only because it depletes critical foreign exchange reserves but also because it leaves the continent vulnerable to external shocks, such as global food price fluctuations, supply chain disruptions, and climate change effects. He warned that, if current trends continue, the reliance on imports is expected to rise.
“The surge in food import expenditure signals an urgent need for systemic reform in Africa’s approach to agriculture, food systems, and self-sufficiency. Agriculture is the backbone of many African economies, contributing up to 22% of GDP in some countries and employing over 60% of the workforce. However, the sector suffers from the world’s lowest productivity rates. Smallholder farmers, who produce the majority of Africa’s food, struggle with outdated farming methods, limited access to financing, and inadequate support in terms of credit and insurance,” he noted.
Zubairu pointed out that Africa holds immense agricultural potential. With over 60% of the world’s uncultivated arable land, the continent has the natural resources to become a global agricultural leader.
“In theory, Africa should be food-secure, a leading player in global food production, and a major exporter of agricultural goods. Yet, this is far from reality. Currently, over 282 million Africans suffer from undernourishment, with millions more facing moderate to severe food insecurity. This is particularly alarming given the vast resources at Africa’s disposal,” he stated.
One of the key obstacles to food security, he noted, is post-harvest losses, which can account for up to 40% of perishable crops. These losses result from poor storage facilities, weak transportation infrastructure, and inefficient supply chains.
To combat this, Zubairu stressed the need for investments in cold storage and value-added infrastructure. “In Nigeria, for instance, AFC’s partnership with the Nigeria Sovereign Investment Authority (NSIA) is developing modular warehouses and cold storage solutions to extend the shelf life of harvested crops. Expanding such infrastructure across Africa can help reduce food waste, ensure better storage for later consumption or processing, and stabilize prices by mitigating supply fluctuations,” he explained.
Opening the Forum, Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa (ECA), emphasized the urgent need to strengthen Africa’s value chains to drive economic growth and industrialization.
“Africa is rich in resources, yet our participation in global value chains remains limited. This Forum serves as a platform to turn potential into prosperity by mobilizing investments in regional value chains,” Gatete said.
Deputy Chairperson of the African Union Commission, Monique Nsanzabaganwa, also stressed the strategic importance of regional cooperation in boosting intra-Africa trade and investments. “The African Continental Free Trade Area (AfCFTA) is breaking down trade barriers and fostering partnerships that will elevate Africa’s economies. A prosperous Africa will emerge through our collective efforts to build strong regional value chains,” she noted.
In his remarks, Ethiopian President Taye Atsekselassie underscored the need to develop sustainable value chains to reduce Africa’s dependence on external markets. “The African Continental Free Trade Area is a transformative tool that can unlock Africa’s potential by promoting industrialization and reducing food imports. Investing in resilient infrastructure, human capital, and digital transformation will be crucial for Africa’s economic future,” he said.
(Source: thenationonlineng.net)
