Good day, distinguished guests, ladies, and gentlemen. It is an honour to be here today to address the important issue of food security and economic sustainability and with emphasis on doing business in the agricultural sector, gaining access to capital and financing, attracting the right calibre of personnel into the Agric sector scaling and reviewing the agribusiness investment opportunities.
The world is facing serious challenges when it comes to feeding its growing population. According to the United Nations, the global population is expected to reach 9.7 billion by 2050, which means that we will need to produce 70% more food than we do today to meet the demand. At the same time, we must ensure that this increase in production is done sustainably, without degrading our natural resources or exacerbating climate change.
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The importance of food security cannot be overstated. It is a fundamental human right, and without it, we cannot hope to achieve many of the other sustainable development goals, such as ending poverty and promoting good health and well-being. However, achieving food security is not just about producing enough food. It is also about ensuring that the food is accessible, affordable, and nutritious, especially for the most vulnerable members of society.
At the same time, we must consider the economic sustainability of our food systems. Agriculture is a major driver of economic growth and a source of livelihood for millions of people around the world. It is also a key sector for achieving many of the other sustainable development goals, such as reducing inequality and creating decent work and economic growth. However, the current food system is often characterized by inefficiencies, inequalities, and unsustainable practices that undermine its long-term economic sustainability.
To address these challenges, we need to adopt a holistic approach that takes into account the entire food system, from production to consumption. This approach should prioritize sustainable and regenerative agriculture practices, reduce food waste and loss, promote local and regional food systems, and ensure that everyone has access to nutritious food. It should also support innovation and investment in the food sector, including the development of new technologies and business models that promote sustainability and economic growth.
When we talk about food security, we must consider not just the quantity of food produced, but also its quality. Access to safe and nutritious food is essential for human health and well-being. Malnutrition, including both undernutrition and overnutrition, is a major public health challenge, affecting billions of people worldwide. The food system must ensure that healthy and sustainable diets are accessible and affordable for all.
At the same time, we must address the environmental impact of food production. Agriculture is a major contributor to global greenhouse gas emissions, and unsustainable agricultural practices can lead to soil degradation, water depletion, and biodiversity loss. To achieve food security and economic sustainability, we must adopt regenerative agricultural practices that protect and enhance natural resources. This includes agroecological approaches that promote biodiversity, reduce chemical inputs, and improve soil health.
Another important aspect of food security and economic sustainability is the role of smallholder farmers. Smallholder farmers, who typically operate on small plots of land and use traditional farming methods, are often the most vulnerable to food insecurity and poverty. However, they also have a critical role to play in sustainable agriculture and rural development. Supporting smallholder farmers through access to credit, markets, and technology can help to improve their livelihoods and strengthen the resilience of the food system.
Other areas of investment opportunities in agriculture that we need to look into will include for us to achieve food security and economic sustainability include.
- Agribusiness:Agribusiness is an attractive investment area in Africa due to the continent’s abundant natural resources, favourable climate conditions, and growing population. The demand for food products is increasing rapidly in Africa, and investing in agribusiness can help to bridge the gap between supply and demand. Some examples of agribusiness investments in Africa include investments inlarge-scale commercial farming operations, food processing companies, and logistics and distribution networks.
- Precision agriculture:Precision agriculture involves using data and technology to optimize farming practices and increase productivity. This can include using sensors to monitor soil moisture levels, drones to survey crop health, and machine learning algorithms to analyze data and make recommendations to farmers. Precision agriculture can help to reduce waste and increase yields, making it an attractive investment area in Africa.
- Sustainable agriculture:Sustainable agriculture is becoming increasingly important in Africa as the continent faces’ challenges such as soil degradation and climate change. Investments in sustainable agriculture can include practices such as conservation agriculture, which involves reducing soil disturbance and using cover crops to improve soil health, and agroforestry, which involves growing crops and trees together to improve soil fertility and biodiversity.
- Agricultural finance/And investment Opportunities:Access to finance is a major barrier for many farmers in Africa, particularly smallholder farmers who often lack collateral and credit histories. Investments in agricultural finance can help to provide farmers with the capital they need to invest in their farms and improve their productivity. This can include microfinance, which provides small loans to farmers, crop insurance, which helps farmers manage risk, and other financial products.
- Research and development:Investing in agricultural research and development is critical for improving crop yields, developing new crop varieties, and finding solutions to the challenges facing farmers in Africa. This can include investments in research institutions, such as universities and agricultural research centres, as well as private sector investments in new technologies and innovations.
There are many promising investment opportunities in agriculture in Africa, and investors are increasingly recognizing the potential of the sector to drive economic growth, create jobs, and improve food security.
We must recognize that achieving food security and economic sustainability is not just a technical challenge, but also a political and social one. The food system is shaped by complex social, economic, and political factors, including power relations, gender inequalities, and cultural norms.
Addressing these issues requires a multi-stakeholder approach that engages all actors in the food system, from producers to consumers, and promotes inclusive and participatory decision-making processes. And this is where AKBF come into shape and redefine the scenario for now and the future
By working together, we can build a more resilient and sustainable food system that ensures that everyone has access to safe, nutritious, and affordable food.
Godfrey Ajayi Sunday
Group Managing Director
Gconsulting international services Ltd/Seedfirst Rice