Categories

South Africa: Banks ‘Need to Play Active Role in Agriculture’

WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.

Original Post Date: 2010-09-21 Time: 14:00:04  Posted By: News Poster

By Bekezela Phakathi

Cape Town – Commercial banks need to play a much more active role in the development of Africa’s agricultural sector, Akinwumi Adesina, president of the African arm of the Agricultural Economists Association, said yesterday.

Mr Adesina said that the majority of farmers in Africa live below the poverty line and as such there was a need for a new policy framework to drive agriculture growth.

Addressing delegates at the Agricultural Economics Association of SA and the African Association for Agricultural Economists conference, Mr Adesina said only 1% of commercial bank lending in Africa went to agriculture. He said banks were reluctant to lend to agriculture largely due to the “perceived risks” associated with the sector.

Mr Adesina said the solution to Africa’s food crisis would come from addressing the underlying structural factors limiting agricultural growth. The dependence on food imports from global markets was a “risky way” to assure food security. He said Africa must take bold steps to accelerate food production with structural supply response.

“We need to move beyond short-term measures, to addressing long-term underlying causes of the food crisis,” Mr Adesina said.

Mr Adesina said that in order for Africa to improve its food security, there was a need for the state to play a stronger role in improving agricultural growth.

“Policies for solving the food crisis in Africa should aim to accelerate growth in productivity of staple crops, promote the use of fertilizers, invest in breadbasket areas and adapt to climate change,” Mr Adesina said.

Speaking at the same conference, Agricultural Economics Association of SA president Tshililo Ramabulana said there was a need for “companies to go big” in order to improve food security in SA and the whole of Africa, and thus meet the Millennium Development Goals.

“The question should be how we encourage a competitive environment that will generate the operational efficiencies necessary to produce quality products at affordable prices,” he said.

Mr Ramabulana said it was unlikely that Africa would meet its millennium goals as people living below the poverty line continued to increase.

“According to the Economic Commission for Africa, Africa is unlikely to reach Millennium Development Goal 1 on nutrition by the target date,” he said.

Original Source: Business Day (Johannesburg)
Original date published: 21 September 2010

Source: http://allafrica.com/stories/201009210660.html?viewall=1