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"Here even basic improvements in the continent's trade' storage and transport infrastructure' coupled with ongoing initiatives to elevate agricultural productivity' have the ability to reap immediate' and potentially huge gains'" he said.
According to the African Union (AU)' intra-African agricultural trade has accounted for an average of one-fifth of Africa's total agricultural trade for the past five years. This compared with an average in the European Union of 78%' and an Asian average of 60%. In some areas' Africa's deficit is even more pronounced: in 2011' just 3% of all African cereal imports originated on the continent.
"Much of the broader cereals shortage is accounted for by a deficit in rice production on the continent: though African countries produced just 3.5% of the world's rice in 2011' they were responsible for 35% of global rice imports for the year'" he said.
Freemantle noted that elevated yields and improved transport and storage infrastructure could immediately improve regional food trade networks.
The World Bank predicted that' should West Africa manage to achieve its potential agricultural yields and open regional markets' its current US$2bn trade deficit in staple foods could convert into a US$12bn surplus.
Growth Green Agriculture (GG Agriculture) | World Bank report
Last year' a World Bank report showed how African countries are losing out on billions of dollars in potential trade every year because of high trade barriers with neighbouring countries It also showed that it was often easier for Africa to trade with the rest of the world than with its neighbouring countries.
The cross-border production networks that have spurred economic dynamism in other regions' especially East Asia' have yet to materialise in Africa.
African leaders have called for a continental free trade area by 2017 to boost trade within the continent.
Extract from an article that appeared in All Africa to continue reading the full article click here
About Growth Green Agriculture (GG Agriculture) |
Growth Green Agriculture (GG Agriculture) is an agricultural investment company solely investing in agriculture and farmland in emerging markets such as the Ukraine and Ghana. By producing wheat, chia and other crops in a low cost environment and selling them on the world-wide market, we aim for providing our investors sustainable returns for distribution as annual dividends.
To find out more about Agricultural Investments visit us @ http://ggagriculture.com
To find out more about Agricultural Investments visit us @ http://ggagriculture.com
Growth Green Agriculture (GG Agriculture)
