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Question of the Week 27

In African cities, are urbanization and a growing middle class creating sufficient demand to enhance productivity through agribusinesses and, if so, what are promising examples of such agribusinesses?

Reactions (3)

Jur Schuurman
2017-04-5 16:49

Many sources coincide in stating that demand for food will increase substantially, for the simple reason that population growth (and urbanisation) will be so massive that, even if quality employment is not created at the same pace, we are speaking of so many (more) people that there are no two ways about it, and that more food, also processed, is needed. A 2015 ... by the Joint Research Centre of the European Commission quotes a number of authoritative sources (FAO, OECD) and summarises one of the major expectyed (and needed) shifts in food security policy as follows: "Current food security policies that focus on targeting those pockets of food insecurity, where hunger and malnourishment persist, will need to be revised. While such policies are certainly worthwhile and commendable, they somehow tend to miss the bigger picture – namely, that food security will increasingly be considered as securing food supply in response to a new and emerging demand." (p. 4)

Regarding new agribusiness, the most inclusive option is for this to be set up by farmers' organisations: it will be located near the actual agricultural production, it increases control of farmers over other (higher) links in the value chain, thuis diminishing rural-urban inequality, and it creates employment for those farmers that cannot make a living with their too small plots, without them having to migrate to far-away big cities. This point is elaborated here.
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2017-05-12 15:34

Most African countries depend on agriculture, and young people must start farming to set up their own projects. The development of modern agricultural methods the transformation and conservation of agricultural products is an approach in response to the reduction of the rate of young unemployed.

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Lisa Freiburg
2017-05-23 15:56

The growing middle-class creates opportunities for agribusinesses to innovate their products. With more money in their pockets, the expectations of what products look like and taste like are becoming higher; more people are happy to pay for better quality products. In Ghana, you see a growing demand for organic products because it is also considered more attractive among the wealthier communities. Many people are okay with paying a higher price and there's a desire to associate oneself with attractive brands and pretty packaging. All this creat... read more »

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