Private sector role in transforming farming

High poverty levels and rising unemployment rates are some of the main challenges facing African countries.

Most development blueprints on the continent tend to pay special attention to this pair of challenges, which if not handled prudently can in the long run be detrimental. 

Kenya’s Vision 2030, for instance, seeks to improve the prosperity of the people through an economic development plan, with a target gross domestic product growth of 10 per cent per year.

To attain this goal, six priority areas were identified: tourism, agriculture and livestock, wholesale and retail trade, manufacturing, business process outsourcing, and financial services.

The World Bank estimates that Kenya’s poverty headcount ratio — the percentage of the population living below the national poverty lines — is 46 per cent.

In a country of 44.35 million, this means that 20.4 million people live below the national poverty lines. The unemployment figures are depressing despite statistics that indicate that the formal and informal sectors generated almost a million jobs last year. 

These are appalling numbers for a country with innumerable income-generating opportunities. Kenya has a huge chunk of arable land, ample rainfall, and adequate and highly trained human resources.

This means that if deserving attention were paid to agriculture, poverty and unemployment numbers would be low.

However, all is not lost. Due to the fact that agriculture is Kenya’s economic engine, the government continues to play a prime role in trying to make this venture an economic activity of choice for many Kenyans.

This is being done through the provision of farm inputs, for example fertilisers, in a timely manner and at affordable prices.

Moreover, the Ministry of Agriculture has been striving to link producers to markets, increase access to financial services, promote innovative private-sector solutions, and spearhead farmer-friendly policies.

It is not in contention that the private sector plays a strategic role in addressing poverty and unemployment through agriculture.

PROPPING UP INDUSTRY

Companies not only promote rural development and poverty alleviation by offering extension services to farmers, particularly smallholder ones, they also inform them about the potential of regional and international markets and how they can exploit them.

Perpetual constraints on the agricultural sector such as poor access to improved seeds and fertilisers are being addressed by the private sector, which also engages in land reclamation in arid areas through irrigation and cultivation of drought-resistant crops.

Beyond assisting smallholder farmers to rehabilitate their underutilised lands, some companies also contract farmers to cultivate what are referred to as orphan crops.

These include pigeon peas, black mungs, green mungs, and millet, most of which are a good source of protein. As the world shifts its dietary needs from red meat, there is a huge market demand for these crops.

Yet, their production is so paltry that it cannot even meet the local demand despite the conducive environment for their cultivation.

Some companies are now engaging smallholder farmers to cultivate these crops in areas such as Machakos, Meru, and Kakamega. They supply farmers with the necessary farm inputs, technical know-how, and assured markets for their produce.

Transforming agriculture into business not only contributes to poverty alleviation but also creates employment for youth. Ultimately, this will help dispel the perception that agriculture is for under-achievers and stem urban migration.

Mr Odhiambo is the country director for Export Trading Group in Kenya. [email protected]