How to de-risk local farming in Africa

African economies have long been urged to reduce their food import dependencies and focus on producing locally in order to boost economic growth and create sustainable food systems. Organizations like U CAN GROW AFRICA are leading the way in this movement, offering a structured contract farming and beneficiation participation model that helps de-risk and micro-finance smallholder farmers in Africa. In a recent interview with CNBC Africa, Steve Carver, Co-Founder of U CAN GROW AFRICA, shed light on the key strategies and challenges involved in local food production. Carver emphasized the importance of creating profitable farmers by aggregating small-scale farms and fostering innovation in agriculture. He highlighted the need for off-take agreements to de-risk farming activities, ensuring that farmers have a market for their produce before planting crops. One of the key themes that emerged from the interview was the role of business-led alliances in driving the shift towards locally produced food. Carver noted that many organizations in Africa are recognizing the importance of supporting local farmers and reducing food imports. By investing in sustainable agriculture and developing long-term offtake agreements, these organizations are not only promoting economic growth but also improving food security and nutrition in their communities. Key Points: 1. Aggregating Small-Scale Farms: Carver emphasized the importance of aggregating small-scale farms to create profitable and sustainable farming operations. By bringing farmers together, sharing resources, and fostering innovation, these farms can improve their productivity and competitiveness in the market. 2. De-risking Farming Activities: Off-take agreements play a crucial role in de-risking farming activities for smallholder farmers. By securing a market for their produce before planting, farmers can avoid losses and ensure a steady income stream. This approach also encourages investment in better seed technology and farming practices. 3. Public-Private Partnerships: Carver highlighted the need for public-private partnerships to drive investment in the agricultural sector. Patient capital from organizations like IDH, a sustainable trade foundation, is helping to de-risk investments and support the growth of local farming initiatives. Business-led initiatives are seen as a sustainable way to drive long-term change and promote economic development. In conclusion, the interview with Steve Carver underscored the potential for local farming to transform African economies and create sustainable food systems. By leveraging off-take agreements, fostering innovation, and building business-led alliances, organizations like U CAN GROW AFRICA are paving the way for a more resilient and prosperous agricultural sector. With the right support from governments and the private sector, the future looks bright for smallholder farmers in Africa.