Africa Urged to Boost Investment in Food Processing Industry to Tackle Hunger

NAIROBI, Xinhua: The food processing industry in Africa could offer a durable solution to the continent’s hunger, malnutrition, and rural poverty, hence the need to boost its competitiveness through investments, technology adoption, and enhanced market access, experts said Tuesday.

Africa is the next frontier for food processing, whose growth has been fueled by urbanization and rising middle-class incomes, the officials said during the virtual launch of a report titled “Value-Up: Policy Innovations to Advance Africa’s Food Processing Sector for Growth, Jobs and Health.”

Compiled by the Malabo Montpellier Panel, an international group of experts in agriculture, ecology, and food security, the report stresses that revitalizing Africa’s agro-processing sector holds the key to tackling the continent’s endemic hunger crisis, boosting exports and broadening revenue streams for smallholder farmers.

Josefa Sacko, the African Union commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment, said policy and fiscal incentives are required to spur the growth of the food processing industry on the continent.

“Demand for processed, ready-to-eat food is growing in Africa, and there is a need to support entrepreneurs with advanced food processing technologies in order to tackle food loss and waste, hunger, and create jobs,” Sacko said.

The report states that the benefits of a robust food processing sector in Africa include enhanced nutritional status and job creation across the agricultural value chain.

Food processing, according to the report, accounts for nearly one-third of Africa’s manufacturing sector and is key to enhancing the resilience of the continent’s farming systems besides tackling pollution linked to rampant food waste.

The share of processed food imports in Africa rose from 28 percent in 2000 to 33 percent in 2020, notes the report, stressing the need to empower local processors with capital, skills, and market linkages.

According to the report, Ghana, Kenya, and Senegal have set the pace in food processing, leveraging friendly policies and legislation, innovative financing, and tax rebates.

Ousmane Badiane, a co-chair of the Malabo Montpellier Panel, said accelerating growth of Africa’s food processing industry demands investments in supportive infrastructure, technology, and manpower.

In addition, Badiane said governments should address bottlenecks to the growth of the local food processing sector, including erratic supply of raw materials, absence of cold chain facilities, policy incoherence, and artificial trade barriers.