Conclusion and suggested policy recommendations for further engagement

The above discussion has pointed out the challenges and opportunities to grow Africa, trade Africa, and move Africa. This section summarises the key recommendations, which focus on how to build robust linkages between the manufacturing and food-industry activities and the rural world, whilst ensuring that intra-African trade is beneficial to all, especially women and youth.

The above can be addressed by creating an enabling environment that emphasises government actions, regulations, laws and policies, including the following: • Market access and information: Governments should create agricultural market information systems and physical infrastructure to ensure application and oversight of sustainable power solutions and veterinary regulations and controls. There should not be a barrier to information, which coould lead to a decline in market efficiency. Standards should be disseminated, explained and understood by value chain stakeholders. • Finance: Governments should implement the Maputo Declaration by investing 10% of GDP in agriculture. This will enhance the financing of smallholder farmers through contracting arrangements by agro-processors and traders.

• Agricultural inputs and value addition: Tax, cost recovery incentives ( for plants and equipment) and other investment incentives, including a robust dispute settlement mechanism, must be put in place. Governments should plan for climate change-related weather patterns and support the farming communities and agro-processors in cases of external shocks (ie droughts, flooding, bushfires and power failures). It is critical to improve storage and distribution infrastructure, regional road and rail transport linkages, and energy access. For example, transport costs in West Africa are three times higher than in other regions. Lack of energy access limits processing activities across all value chains. The high cost of alternative energy sources, diesel and renewable energy results in low levels of competitiveness. In both traditional and modern agricultural value

chains, women often face less favourable employment conditions than men. Efforts should therefore be made to ensure gender equality throughout the value chain, as well as to prevent traditional patterns of gender discrimination from being repeated. • Intra-regional trade facilitation: Enforcement of the rule of law in policies that protect contracting firms will be important for trade and regional integration. Governments should promote regulations that permit farmers to secure land and property rights.

Efforts should be made to limit customs procedures and corrupt practices as time delays are dangerous for the agricultural sector. It is important to harmonise procedures at a continental level by standardising the list of required documents. The use of ICT through online hubs with trade procedures, transportation and customs documentation is essential. The fight against illegal practices, such as road blockages or illegal fees at customs offices, should be strengthened.

Some of the policy issues to consider for the development of the African agricultural sector are as follows: i) Partnering with smallholder farmers to fasttrack the transition into mechanised farming.

Stakeholders such as the private sector,

NGOs and the government should come together to enhance the transition with the supply of farm inputs, farmer education on technology adoption and its importance towards mitigating climate change risks. ii) On political commitment, policy inconsistency and policy somersault are of great concern in Africa. Africa also needs efficient customs that not only take care of revenue generation, but also allow easy passage of goods and services across borders. iii) Infrastructure in Africa is a major concern as no country on the continent has reached the minimum standard. There is a need for massive investment in technology to make agriculture prominent on the continent and it is now time for the private sector to get involved.

iv)Foreign direct investment (FDI) and the possibility of having sustainable and effec-

tive government incentives to support investors are possible on the continent. Governments should create fiscal incentives to encourage domestic investment and import substitution. Governments should also remove restrictions on some areas of investment and maximum equity ownership investment by foreign investors. For example, when travelling overseas and entering Nigeria, Uganda, South Africa or any other regional destination, there should be an investment facility that has no restrictions on currency exchange controls. There should be free transfer of capital, profits, and dividends, and a constitutional guarantee against nationalisation and expropriation of investments.

v) With regards to agricultural trade, governments should implement a zero-percent duty on agricultural machinery and equipment. This will encourage the use of appropriate farm inputs. Governments should implement policies that foster agricultural investment. Examples include duty waivers and other industry-related incentives based on use of local raw materials.

vi)There is an urgent need for enhancing public-private partnerships, which are critical in dealing with supply chains. There should also be policies crafted to ensure the African continent embraces the notion of consuming what they produce and producing what they consume.