A major challenge is that most businesses encounter higher tariffs for exporting within than outside the African continent. The arduous visa requirements and export duties demanded across borders are enough to discourage intra-African trade. Building a trans-African highway network system will take years to complete but there has to be an efficient mode of transportation for intra-African trade to occur. If not properly addressed, there would be more goods than the means of transportation across the continent.

The high level of importation has left several African countries with negative trade balances. Shortage in the number of standardized manufacturing plants within the continent is saddening. Most manufacturing industries are either foreign-owned, redundant or cannot process very large quantities into consumable goods.

African governments have to invest heavily to resuscitate the production and manufacturing sector to create employment for the locals and ensure that quality goods are manufactured. Governments have to ensure that the manufacturing companies for the AfCFTA are not multinationals because it would be unfair competition to local manufacturers. The rules of origin can help prevent the transhipment of goods and foreign companies from taking advantage of zero tariffs.

Furthermore, there is an uneven distribution of populations amongst African countries. Some countries also have an unfair advantage of numbers over others in market size and landmass. These factors have to be considered before setting transactional and regulatory duties. There are concerns regarding uneven economic gains of the agreement such as tariff losses and the cost of adjustment to a competitive environment. Some countries, for example, depend solely on the fiscal revenues generated on tariffs, eliminating these would constitute a huge loss of revenue.

For smooth transactions between the countries, there would be a need for increased cooperation on rules of origin, harmonization of custom tariffs, trade facilitation and setting up phytosanitary measures regarding the standard of goods traded. There is a need for government sensitization so that citizens can benefit from the opportunities presented by this agreement. Business owners should also be aware of fraudulent acts and avoid exporting counterfeit goods from respective countries.

The concerns about the AfCFTA are genuine and have to be addressed for seamless trade facilitation within the continent. Pan-African financial institutions like the African Development Bank and the African Export-Import Bank (Afreximbank) are contributing their quota to foster trade-relations in the region. Afreximbank has set aside a $1 billion AfCFTA Adjustment Facility to enable countries to adjust to the sudden tariff revenue losses as a result of the implementation. These and more are essential for Africa to be truly ready to implement and enjoy the full benefits of the free trade agreement.

The post Is Africa truly ready for the Africa Continental Free Trade Agreement? Part 2 appeared first on MTFC | Meet The Farmers Conference - Nov 2019 - Dubai UAE.

Poultry farming is lucrative and creates employment opportunities and high return of investments. In Namibia, the broiler industry contributed 0.71% to its overall Gross Domestic Product in 2017 according to an economic impact assessment commissioned by the local poultry association. The Namibian boiler poultry industry has great potential in creating jobs, food security and industrialization.

The Nigerian poultry industry is estimated at $800 million and is comprised of approximately 145 million birds. Nigeria presently produces above 550,000 metric tonnes of poultry meat and 700,000 metric tonnes of eggs per annum. It is the largest producer of eggs in Africa.

Also, the poultry industry is the largest segment of the South African agricultural sector, contributing more than 16% of the GDP. It provides employment, directly and indirectly throughout its value chain. Uganda also offers opportunities for poultry farmers. It offers great opportunities for poultry farmers around the world to invest.

Before you start a poultry farm, take out time to learn about the business. A successful poultry farm is as a result of commitment and time invested in rearing the birds.

See also: Farmers Corner: Why You Should Visit the Farmers Market

Before you Start a Poultry Farm

Feasibility Study

This will help you know if the business is viable on all fronts including the business viability, technical viability, operational viability, etc. the feasibility study includes the introduction, product, technology, market environment, industry, financial projections, risks factors and regulations.

Business Plan

• Determine the location. The size of land depends on the number of birds you want to raise. It is not advisable to acquire land in major cities, it’s better to purchase land in a rural area. Get land in non-residential areas because of the foul odor from bird excreta. Also, keep in mind the availability of water supply, nearest to market and logistics cost.
• Determine the kind of breed you wish to farm for commercial poultry. Broilers grow very fast and are used for commercial meat production. Layers produce more eggs for commercial purposes. Cockerels are another type of meat productive poultry breeds. They grow slower than other breeds and can adopt to almost all types of environment.
• Make plans pertaining the production type (determine whether the farm is for egg or meat)
• Decide whether to produce for commercial or personal purpose. Commercial farming require hiring of labor.
• Housing facilities (free-range, furnished cage, battery cage, yarding). You also need to determine what is needed for the setup.
• Customers logistics system to use, to determine whether you will need an extra hand to transport your feeds, produce or not.
• Decide the people you produce for and make contacts with traders/consumers

Feeding Plan

Choose the right feeding plan for the birds to be healthy and highly productive. Always provide adequate amount of food according to the number and age of poultry bird. Supply sufficient amount of water and vitamins too.

Photocredit: agrohow.com

Health Management

Make adequate plans for constant cleaning of the housing facilities. Birds are very sensitive and may suffer viral, bacterial, fungal, and parasitic diseases. Proper vaccination is required to keep birds disease free, healthy and productive. A vet doctor should vaccinate the birds frequently.

Test run

After conducting a feasibility study and writing down your business plan, start by farming small number of birds).

With 45% of the world’s unused agricultural land in sub-saharan Africa, there is great potential for the poultry industry to grow. South Africa, Nigeria, Ghana, Côte d’Ivoire, Uganda, Senegal, Angola, Malawi, Rwanda, Kenya and Ethiopia are currently growing markets on the continent, all with expected year-on-year growth in the range of 6 to 10 percent between 2015 and 2025.

More on MTFC:

• Precision Farming in Agriculture
• Investment Opportunities in Africa You Can Tap Into
• Horticulture Business in Africa
• 5 Modern Agricultural Practices Today
• MTFC: Trade in Africa

The post Farmers Corner: Poultry Farming Business Setup in Africa appeared first on MTFC | Meet The Farmers Conference - Nov 2019 - Dubai UAE.

The Challenge is designed to promote ground-breaking ideas for early stage Agric entrepreneurs from all sectors of the agriculture ecosystem using creative and innovative methods to change the landscape of the agriculture value chain in Africa. The competition will guide Agritech entrepreneurs around their way in the industry and open them up to loads of opportunities in Africa and GCC region.

Why You Need To Apply For The Challenge

This is a golden opportunity from every agritech entrepreneurs to embrace. See reason(s) why you should apply for the competition.
• Cash Prize of $5,000 Grants to The Winning Start-Up
• Fully sponsored trip to Dubai for the MTFC Conference grand finale
• Funding and Investment Opportunities from African and GCC Investors
• Opportunities for business expansion
• Access to experts and mentors in the Agribusiness
• Validation and Visibility to the participating agribusinesses
• Access to a large network of corporate partners, industry relationships and lots more.

How to Apply

Interested applicants can apply via the MTFC website here. The winners will be selected based on innovativeness, originality and viability of the idea by top-notch entrepreneurs, investors and industry leaders in Africa. The regional finale will hold during the Meet the Farmers Conference in 4 African cities – Accra Ghana on 4th July, Nairobi Kenya on 2nd August, Kigali Rwanda on 5th September, Abuja Nigeria on 4th October while the Grand Finale will hold on 4th November 2018 in Dubai, United Arab Emirates.
N/B: Deadline for the application is 30th June, 2018.
This a golden opportunity for Agric entrepreneurs in Africa to meet up with their contemporaries across the globe.

The post All You Need to Know about MTFC Innov8Agric Challenge appeared first on MTFC | Meet The Farmers Conference - Nov 2019 - Dubai UAE.

Tea farmers in Kenya. Photo Credit: iied.org

The new African Continental Free Trade Agreement (AfCFTA) is expected to be a game changer, boosting inter-African trade, spurring manufacturing, and creating economic opportunities. But for its benefits to be realised, the details need to be negotiated; and Africa’s leaders need to commit to AfCFTA for the long haul.

On 21 March 2018, 44 African states signed the African Union’s (AU) AfCFTA in Kigali, Rwanda. According to the AU, which initiated the process in 2015, the goal is to “Create a single continental market for goods and services, with free movement of business persons and investments,” with the purpose of accelerating intra-African trade. If, and when, all 55-member states of the AU sign the AfCFTA, the African Trade Policy Centre (ATPC) notes that the trade agreement will, “Cover a market of 1.2 billion people and a GDP of US$2.5 trillion [more than €2 trillion].”

Among the largest African economies, Nigeria and South Africa have not yet signed the AfCFTA. Nigeria’s President is facing pressure from labour unions and other groups who believe that the agreement will hurt the Nigerian economy by undermining local businesses. South Africa indicated its political support for the AfCFTA but stated that further internal consultations, as mandated by its constitution, were needed before signing it.

Implications for tariffs and trade

With current tariffs of 6%, ATPC notes that African businesses face higher tariffs when they export within Africa than when they export outside the continent. As AfCFTA eliminates tariffs on intra-African trade, this should encourage African businesses to trade within Africa. Intra-African trade could be boosted by more than 50% if import duties are eliminated, estimates the UN Economic Commission for Africa (UNECA), and intra-African trade doubled if non-tariff barriers are also reduced.

However, as smaller countries cannot compete with larger, better developed economies, the International Center for Trade and Sustainable Development notes that it is essential that, “The agreement actually works for countries at different levels of development.” The AU’s Boosting Intra-African Trade Action Plan (BIAT) may help; the Plan has identified seven programmatic areas, for example, trade facilitation, which will reduce road blocks and simplify customs and transit procedures at borders. AU members can use the plan to prioritise policy reforms required in these seven areas to benefit fully from AfCFTA. As UNECA notes, the BIAT Action Plan essentially complements AfCFTA with the former focusing on supply-side constraints to intra-African trade, and the latter on market access and demand-side constraints. However, according to a UNECA assessment, the BIAT Action Plan is currently hampered by three main challenges: a lack of institutional structure, an absence of monitoring and evaluation mechanisms, and insufficient resources.

Another key point, as UNCTAD notes, is that about 80% of all intra-African trade already flows through one or more of eight existing regional economic communities (RECs). What will it take for the AfCFTA to supplant the piecemeal approaches of these other agreements? Asmita Parshotam, an international trade and development expert with the South African Institute of International Affairs states that, “This will depend on whether the AfCFTA is able to supersede some of the RECs, or at least have one or two of them collapse into the overarching structure with time in its attempts to consolidate continental and regional efforts.”

Also See: IFAD Announces $1m Project to Increase Agriculture in East Africa

Enhancing productivity

One way some countries can begin to benefit from the AfCFTA is to begin to integrate their products into regional value chains, particularly when they can’t meet standards for participating in global value chains. This may be especially applicable to the agricultural sector. Despite agriculture providing up to 60% of all jobs in Africa, and 25% of GDP, the share of agricultural commodities in intra-regional trade has been quite low – less than 30% according to UNCTAD. TradeMark East Africa’s senior director of trade environment, Richard Kamajugo agrees, “Agriculture is a sector with room for significant productivity improvements, especially through enhancing agro-industry and agro-processing, given that the African market (intra-African trade) has accounted for over 50% of the growth in processed food exports from African countries since 2000.”

In 2006, the AU Declaration of the Abuja Food Security Summit called for promoting intra-African trade in rice, maize, legumes, cotton, oil palm, beef, dairy, poultry and fisheries products at the continental level. UNCTAD has identified additional promising products, such as potato and tea, which have shown the most potential for integrating into value chains. Kamajugo notes that, “By facilitating trade, and thereby reducing transaction costs, AfCFTA will enhance regional value chains. Growth rates for several agricultural commodities are also expected to increase.”

Must Read: US to Improve Farm Produce with Sh11.5bn

However, some countries may have less to gain by stepping into the agreement. Kamajugo notes that, “As a vital component, the AfCFTA will need measures that promote integration of vulnerable groups with limited capacity and skills into larger value chains. Among these are simplifying documentation for trade regimes, such as rules of origin requirements, providing support to meet standards for phyto-sanitary requirements and re-skilling enterprises so they can focus on export competitiveness.”

Taking all these variables into account, and with the underlying instruments of the agreement still to be harmonised, many countries are taking a wait-and-see approach. “At the end of the day,” Parshotam notes, “political commitment is necessary and political will, together with technical, financial and human resources, is what will drive AfCFTA’s implementation. This will involve give and take amongst leaders, especially as the AfCFTA is rolled out at domestic levels and there is a need to drive support for implementation.”

Culled: spore.cta.int

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The post A promising new continent-wide trade agreement for Africa appeared first on MTFC | Meet The Farmers Conference - Nov 2019 - Dubai UAE.

Outgoing US ambassador to Kenya Robert Godec tastes tea at the East Africa Tea Association offices on February 27. PHOTO | Laban Walloga. FILE PHOTO | NMG

The United States has divulged a Sh11.5 billion programme to help Kenyan farmers by offering them innovations and technologies in dairy, livestock, root and drought-tolerant crops.

Dubbed Feed the Future Kenya Country Plan under the US Global Food Security Strategy, the program expects to diminish poverty and enhance the capacity of local farmers and pastoralists to adapt to financial stuns, such as, drought and subsequently help their incomes and nutrition status.

While commenting during the launch of the programme in Nairobi, departing US ambassador to Kenya; Robert Godec said the programme would focus on promoting long-term sustainable development that would help communities resist the shocks that are brought on by drought and other natural disasters.

“Together, we have reached nearly 900,000 Kenyan farmers,” said Mr Godec.

“We helped them grow better crops and increase milk production, and then get those products to market.  All told, working with partners we leveraged over Sh22 billion in new assistance to the agriculture sector.”

Kenya is one of 12 countries that had earlier been selected as the focus of the second phase of the American initiative to combat food insecurity.

Kenya was in the first phase of the “Feed the Future” programme which was launched in 2009.

Under the initiative, USAid reports that 1.1 million farmers used new technologies for the first time in 2016.

Globally, Feed the Future says it has facilitated Sh278 billion ($2.7 billion) in agricultural loans.

The Americans also say that the plan has increased US exports to partner states by Sh103 billion ($1 billion).

Other African countries targeted for the second phase of the programme are Ethiopia, Ghana, Mali, Niger, Nigeria, Senegal and Uganda.

You may also be interested in:

• Agripreneur Of The Week – Rotimi Williams of Kereksuk Rice Farm
• EIB, AfDB Invest $70m in Agriculture, Business in Nigeria
• Farmcrowdy Garners Up To £1,620,000 From Nigerian and Diasporan Investors Into The Agricultural Sector

The post US to Improve Farm Produce with Sh11.5bn appeared first on MTFC | Meet The Farmers Conference - Nov 2019 - Dubai UAE.