DFDC-SA

This afternoon, agriculture was in the spotlight at the South African Pavilion at #COP28. The theme of the discussion was “Unlocking Innovative, Inclusive Finance to Support African Agricultural Sector to Adapt and Transform” in the Climate Change Environment. The inputs included a need to boost Africa’s agricultural productivity, the use of technology to adapt to the changing environment, addressing food waste, blended finance instruments to support the sector, etc. On the aspects of farm productivity challenges in Africa, I noted that we could still learn from the good happening in South Africa, which is fundamental in the broader climate debate. First, investments in infrastructure are critical. This includes both institutional infrastructure and physical/hardware infrastructure that can reduce business costs. Second, embracing technological advancements in seeds, genetics, and agrochemicals, which are vital in boosting productivity. Policy interventions that promote access to these technologies and create market systems that can deliver these technologies efficiently, at low cost, to make farming competitive. Third, supporting commercial farming, which will be essential for the growth of the agro-processing part of the various countries’ food systems and a source of employment, is a critical step for agricultural progress in Africa. Lastly, limited trade and commodity price interventions are essential to enable more private sector investments to drive market corrections in instances of price swings. Huge thanks to colleagues at @Absa Group and the @NBISA for involving us (@AgbizSA ) in the session.