Monday 28 May 2012

Partnership to address Africa's agricultural challenges


By WARDA MEYER
The World Trade Centre and Agri Mega Group have forged ties to address the agricultural challenges of Africa and to position the continent to become the food hub of the world.
The two groups took their first steps towards realising their ambitions last week when the Agri Mega Group (AMG) and World Trade Centre (WTC) signed a memorandum of agreement in Cape Town.
Their venture soon will see Africa boasting its own Agriculture Expo, which promises to attract the interest of major roleplayers along the entire agriculture value chain.
Agri World Africa (AWA) aims to showcase agricultural products, promote trade and commerce between African countries and internationally, put African agriculture on a sound path of growth and development, develop and grow economies with the focus on enhanced agricultural activities, and facilitate sustainable food production on the continent.
Agriculture MEC Gerrit van Rensburg said he was very excited about the partnership and the potential it held for agricultural development on the continent, from Cape Town to the Sahara.
“One partner hosts an extensive African footprint, together with a vast business network, while the other partner is an expert in agricultural services.
“I believe this partnership holds the potential to transform the agricultural investment landscape on this continent,” he said, adding that he was “proud that this partnership is being forged right here”.
Van Rensburg cited two very important challenges facing SA – unemployment and restructuring agriculture.
“More than 50 percent of South Africans between the ages of 18 and 25 are unemployed. It is estimated that 73 percent of unemployed people in South Africa are younger than 35 years of age.
“This is a social time bomb.”
Further, he said, SA had to restructure agriculture and land ownership in a peaceful way.
“This is also a time bomb. We need to do this without compromising our future food security status.”
Only once these to issues had been resolved, would SA and rest of Africa prosper.
Van Rensburg said his department estimated that a 5 percent increase in agricultural exports would translate into 23 000 jobs.
The MEC added that World Trade Centre estimates were that a 1 percent increase in trade with the African continent would generate $17 billion.
“This is three times the amount the continent receives in foreign aid, and 16 percent more than is needed to alleviate poverty on the continent.”
World Trade Centre chief executive Julius Steyn said they were very excited about the business opportunity.
One of the main reasons for the venture was the fact that less than 20 percent of Africa’s arable agricultural land was developed.
“Africa has the capability not only of feeding itself, and being less reliant on importation, but also the ability to feed the world.
“We are anticipating that with this project, we have at least 10 African countries participating in next year’s expo, but we are actually aiming to have between 20 and 30 African countries that will participate in this venture,” he said.
According to Steyn, teaming up with Agri Mega and strategic partners across Africa meant they could achieve the objective of developing a food security programme not only for SA, but for the rest of the continent and the world.
He added that Agri World Africa would give the continent access to world markets not ordinarily accessible to agricultural producers.
“Furthermore, this joint venture with the Agri Mega Group will support and co-operate with the existing pool of agriculture experts who currently play pivotal roles throughout the African continent,” Steyn said.
Orton King, group executive director of the Agri Mega Group, said his team was committed to changing the common perception that Africa was a place of poverty and hunger.
“I think it is time to start thinking of Africa as a continent with lots of potential and capacity to feed the world with agricultural products.”
warda.meyer@inl.co.za
Original Article Here

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