How investing in agriculture can help achieve SDGs

Agriculture is the main economic activity for the majority of the developing world, especially Africa. Despite this fact, the sector is rarely given enough attention by governments and is often underfunded, which has undermined it growth and crippled productivity. Though African governments committed to increasing agro-funding to at least 5 per cent of their national budgets under the Maputo Declaration, few if any have done so. As the world starts implementing the new Sustainable Development Goals (SDGs) recently launched by the United Nations General Assembly, it is hoped governments will pay more attention to the sector since it plays a critical role in reducing poverty among the populace. SDGs, which replaced Millennium Development Goals (MDGs) are expected to build on the achievements of MDGs with the view of further improving the living conditions of poor people. Some of targets of SDGs are improving household incomes through poverty eradication programmes, reducing hunger and solving environment issues. However, some experts say achieving these goals could be hard since the majority of the people who live in extreme poverty globally depend on agriculture that is largely subsistence in nature. They urge governments to increase funding to the agricultural industry to enable application of modern farming methods to spur production and boost household incomes. Henry Gitau, the director of Balton Rwanda, says though smallholder farmers still face huge challenges, agriculture is instrumental in the fight against poverty. “Fighting poverty is a process…We have to help farmers overcome climate changes that have resulted in unreliable rain patterns and prolonged droughts and, consequently low production. That’s why the private sector needs to partner with governments to help farmers embrace better farming methods and quality seeds to improve output. With continued and more support to the sector, we could eradicate poverty among the masses within five to seven years,” Gitau says. He says access to quality seeds, as well as putting in place better drought management systems, good infrastructure, and adoption of modern technologies could make it easier for farmers to increase production. “If farming is intensified with use of machinery and greenhouses, it’ll boost yields for smallholder farmers. Therefore, government and research institutions should work together to provide farmers the necessary inputs, including quality and drought resistant seeds. This also helps ensure food security, and sustainable household incomes,” he adds. Meanwhile, the government of Rwanda has tried to do its best to support Over Rwf120 billion was allocated to the agriculture sector this fiscal year. The sector, which employs over 72 per cent of Rwandans, is projected to grow by 5.2 per cent this year. According to research, the majority of the people in Africa are involved in the agricultural industry, but not in a way that helps economies grow. Louis Butare, the director general of the Rwanda Agriculture Board (RAB), explains Rwanda has put in place interventions that help challenges faced by smallholder farmers to ensure better harvests, as well as access to markets. Butare says RAB trains farmers to equip them with modern agriculture practices. It has put in place programmes, like crop intensification, and farmer field schools, where farmers proper crop husbandry and post-harvest management, among others, to ensure quality along the value chain. “Agriculture is seen as a high-risk sector, making it less attractive to financial institutions and hence farmers find it hard to access funding,” he says. He notes that the institution has put in place strategies to improve access to agro-finance, saying this will boost output. “For instance, we are partnering with the East Africa Exchange (EAX) in scheme, where farmer co-operatives working with EAX are able to secure loans using their produce,” Butare says. Thomas Bazarusanga, the country manager of Acre Africa, notes that smallholder farmers are the world’s biggest leverage point in achieving our global development goals. He argues that if smallholder farmers are provided with tools and resources to enhance productivity, they can gradually grow themselves out of poverty. “Smallholder farmers as the largest group of global poor represent our best opportunity of working with different Rwandan farmers, using simple solutions, but they have had significant impact on people’s livelihoods. Farmers that work with us increase their output and incomes, making it possible for them to move from hunger to nourishment. They are using their additional income to pay fees for their children and invest in their farms. The farmers have also been able to acquire innovative products, such as solar lamps that benefit the environment by reducing the need to use kerosene,” he explains. Using the World Bank definition of $1.25/day, as of September 2013, roughly 1.2 billion people remain in extreme poverty. The study, ‘Ripe for change: the promise of Africa’s agricultural transformation’ showed that if governments invested more in farming, this could help lift 85 million people out of extreme poverty by 2024,as well as create more jobs and boost the economies.

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How investing in agriculture can help achieve SDGs