Unlocking Agricultural Economic Development in Africa Through Intra-trade

By: Michael Terna Adigam

Communications Associate, DEAN

Introduction

Africa is a vast and multi-diverse continent with a rich agricultural heritage and enormous potential for growth and development. However, up until now, this potential has not been fully realized due to a variety of factors, including lack of infrastructure, low levels of technological development, and limited access to markets which limits intra-trade.

Intra-trade, which is the exchange of goods and services within a particular region or country, is an essential component of economic growth and development which will enable the development of Africa’s agricultural economic sector through key factors like access to markets for farmers, encouraging investment in agriculture, and fostering economic growth and development. 

To promote African intra-trade, let’s look at these key factors.

Regional Trade Agreements

One of the topmost priorities would be regional trade agreements, allowing easy trading amongst countries within a region by reducing tariffs and trade barriers. The East African Community (EAC) for example, has helped to increase intra-regional trade within East Africa by reducing tariffs on a range of agricultural goods and services. Other regional trade agreements in Africa include the Southern African Development Community (SADC) and the Economic Community of West African States (ECOWAS). There are also a number of initiatives aimed at promoting intra-trade within Africa. For example, the African Continental Free Trade Area (AfCFTA) launched in 2021, has already made significant progress in reducing tariffs and other trade barriers, making it easier for countries in Africa to trade with each other.

Infrastructure Development

Looking at infrastructural development, particularly in rural areas where many smallholder farmers are located, which includes the construction of roads, bridges, and other transportation facilities to connect rural communities to urban markets, as well as investing in irrigation systems, climate-enabled storage facilities, and processing plants will help farmers maximize the value of their crops and also prevent post-harvest losses.

Access To Markets And Loans

Improving access to credit and financing for smallholder farmers and other agricultural cooperatives is also be a key strategy. Many smallholder farmers in Africa face significant barriers to accessing credit, which limits their ability to invest in new technologies, expand their operations, and improve their productivity. By providing access to credit and other financial resources, these farmers would be helped to grow their businesses and increase sustainable income.

Agro-Tech

Increasing the use of technology in agriculture by promoting the adoption of precision agriculture techniques, such as GPS-guided planting and fertilization, as well as investing in research and development to develop new technologies would help farmers increase their yields and reduce their costs.

Strategic Partnerships

Partnerships with The West Africa Agricultural Productivity Program (WAAPP) would improve market access for African farmers and agricultural businesses. This includes negotiating trade agreements with other regions to open up new markets for African products, as well as working to remove barriers to trade within Africa itself. Increasing market access, farmers and businesses would be able to sell their products at higher prices, which would in turn encourage more people to venture into the agricultural sector and help to drive economic growth.

Collaborating with Farm to Market Alliance (FtMA) would improve the overall business environment in Africa by reducing corruption, streamlining regulations, and improving policies around the agricultural sector, making it easier for businesses of all sizes to operate and grow, which would in turn create more opportunities for smallholder farmers and other agricultural businesses.

In essence…

Using these key factors will create an opportunity for economic development Africa for both intra-trade and agriculture. 

It is important for governments to create enabling environments for the agricultural sector, which influences other sectors of economic development within a country.