The first key notes, presentations and contributions by Zambian government related research agencies, the Zambian Ministry of Agriculture and Zanaco's (Rabobank's partnerbank and the premier food and agri business bank in Zambia) researchers are aimed at setting the scene. It becomes clear that Zambia has a lot going for it. The country, 20x the size of the Netherlands and with 'just' 15 million inhabitants, is quite scarcely populated and a staggering 45% of its land is arable. The next generation is abundantly represented in Zambia; over 60% of the population is under 24. Contrary to its neighbouring countries, water availability is not a challenge for Zambia.
Paradox
The country's food and agri sector offers the full width and breadth of agriculture in Africa; from smallholder & emerging farmers to commercial farming, to corporate farming, to large foodprocessing companies. The agricultural sector produces many of the global commodities including maize, soy, wheat, sugar and potatoes. The sector is dynamic and developing fast. Yet, at the same time, Zambia imports some 20% of locally consumed foods. Although about 45% of the land is arable, just 15% of that amount is cultivated. Its urbanization rate exceeds 40% driven by a high rural poverty rate that, despite positive general economic developments, has remained virtually unchanged. Quite a paradox.
This paradox can't be explained in a couple of sentences, it is a complex issue and its reasons are myriad. Prominently among those reasons are:
- the economy's single dependency on copper; some 75% of the country's national income, is derived from trade in this commodity
- macro economic developments such as a decreased need for copper and its direct negative impact on GDP as well as negative exchange rate developments between the US Dollar and the Zambian Kwacha
- political instability that increased over the past decades; agri-related government policies and programs do not get the chance to come to full fruition.
Unlocking small holders potential
In addition; many Zambian farmers are smallholder and emergent farmers who are considered 'unbankable', but at the same time represent most potential for improvement. Providing those farmers with access to knowledge, networks, finance and markets is vital for unlocking that potential, rather than increasing scale and mechanisation levels, which might result in job losses. Access to finance is increased by out-grower schemes, cooperative financing, and innovative products like 'loan a cow'. Companies like Zambeef; a small butcher which turned into a big brand and fully integrated its agri business, provide smallholder farmers with access to markets. Approximately 70/80% of Zambeef’s input for beef-based products is sourced from smallholder and emerging farmers. Additional solutions include partnerships and co-operations increasing the 'bankability', diversification, smart agriculture and especially highlighting the important role of women in agriculture. These solutions are also warming up the next generation for the sector. For this next generation to take over the helm, according to the Master Class participants, they need to: 'like what they do, be passionate about it', 'have a tolerance for frustration', 'grasp new opportunities that come with each disaster', 'inspire their people', 'be innovative, and resilient'.
In their wrap up participants Bill O'Keef and Bruno Melcher addressed their main insight after the first two days, namely that any effort to help bring agriculture in Africa too full fruition, requires a shift in perspective. Bill: 'we need to consider the possibility that it's not about how we can help to change, but how we can change to help. Exporting produce needs to become more a partnership." Bruno admitted that over the past few days: "the more we learn, the less we know", but has come to realise that "we can't come in and change things based on our own perspectives, transformation needs to take place without conflicting with Africa's way."
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