Obasanjo Calls for Market Incentives to Grow African Agriculture

News in brief:

-Obasanjo has called for fair market systems and affordable financing to scale agriculture and create millions of jobs in Africa.

-Speakers emphasise enabling AfCFTA, food security, processing, and innovation to end hunger and boost economic growth.

Former Nigerian President Olusegun Obasanjo recently stated that Africa’s agricultural sector can become a powerhouse for job creation and hunger reduction, but only if market dynamics are fixed.

Speaking at the African Agri-Investment Indaba in Cape Town on Tuesday, he emphasised that Africa’s growing workforce presents both an opportunity and a risk.

“Africa is projected to have the world’s largest workforce by 2030… It can only become productive if the people are educated, skilled and empowered,” he said.

He noted that Africa will host one-third of the global labour force by 2050, making agriculture a critical driver of productivity and prosperity.

Trade Barriers and Financing Holding Back Progress

Obasanjo stated that Africa’s rich farmland and vast population should serve as a foundation for food security. Yet, the continent remains dependent on imports due to weak capital access and fragmented markets.

“In my home country, you cannot get loans from commercial banks for agriculture for anything less than 28% to 30%. Unless you are producing cocaine, there is no way you can invest that in agriculture and expect to make it,” he said.

He highlighted the African Continental Free Trade Area (AfCFTA) as a transformative tool that requires infrastructure, fair financing and innovation support.

Hunger and Food Security Remain Urgent

The International Federation of Red Cross and Red Crescent Societies reports that 282 million Africans face severe hunger due to climate shocks, conflict and economic instability.

Obasanjo urged major investment in research, technology, and value addition to transform Africa into a leading global food producer.

G20 Summit Reaffirms African Agricultural Ambition

National Assembly Speaker and former Minister of Agriculture, Thoko Didiza, said the G20 Summit hosted in Johannesburg signalled renewed support for food security and job creation across the continent.

“If we continue exporting our raw products… we are not only exporting direct job opportunities but slowing our economies from industrialising,” she said, emphasising the need to process raw food products locally.

The G20 Declaration committed to expanding access to nutritious food, supporting local food production systems, and strengthening agricultural value chains across Africa.