www.mamopanel.org VALUE-UP: Policy innovations to advance Africa’s food processing sector for growth, jobs, and health @MaMoPanel MaMoPanel #MaMoForum 14th Malabo Montpellier Forum 27 August 2024

Presentation Outline Part One: Main Report Findings Part Two: Lessons from case study countries Part Three: Action agenda and Recommendations

Presentation Outline Part One: Main Report Findings Part Two: Lessons from case study countries Part Three: Action agenda and Recommendations Dr Aisha Musaazi S. Nakitto, Scientist, AKADEMIYA2063, Rwanda Interim Program Head, Malabo Montpellier Panel

Why Food Processing? Demand dynamics Rising demand for processed foods in Africa due to increased: • Population growth, Urbanization, Income Increasing share of processed foods in Africa’s food imports • Rose from 28% in 2000 to 33% in 2020 • Untapped market potential for food processing growth. High level & rising share of processed foods in intra-Africa trade © https://dynamicretail.com.au/the-top-5-tips-for-successfully-exporting-food-and-beverages/

Why Food Processing? Potential benefits Strong performance & competitiveness of the emerging processing sector • tapping into that demand to increase revenue from all actors in the agri-food value chain Higher revenue from processed foods versus raw food Improvement in food security and nutrition © Modern Ghana 2024

Challenges faced in the food processing sector Business environment • Infrastructure investments • Unreliable supplies of raw materials • Access to finance Consumer preferences & quality standards Technical • Boosting profitability • Skills development and upgrading • Access to and maintenance of food processing machinery Market access, trade barriers, & competitiveness

Opportunities and solutions to challenges in Africa’s food processing sector © https://nsimco.com/en/equipment-used-in-food-processing/ Integrating smallholders into the rapidly expanding food processing sector. Enhancing the competitive performance of food processing enterprises • Capacity for technical innovation • Skills development & upgrading • Access to infrastructure and services • Adaptive financing systems

Nutrition opportunities from processed foods Processing could help overcome the continent’s rising prevalences in: • micronutrient deficiencies • (62% Africa’s preschool children deficient in : iron, zinc, or vit A) • diet-related NCDs • Obese adults in Africa increased from 7.9% in 2000 to 12.8% in 2016 • 24% of global obese children under 5 in Africa Preserves food & enhances nutritional quality & food safety • Food fortification, fermentation, pasteurization, canning • Development and more effective implementation of food safety policies • Facilitate compliance with national, regional and international standards and regulations

Presentation Outline Part One: Main Report Findings Part Two: Lessons from case study countries Part Three: Action agenda and Recommendations Dr. Debisi Araba, Visiting Researcher, Imperial College London Malabo Montpellier Panel member

Lessons from case study countries - Methodology Aim: Identify African countries that have made the most progress in advancing their food processing sectors. A 4-step approach was taken using the 3 indicators o Agricultural Production Index (API) Per Capita o Value of imported food processing machinery o Share of processed products in total agricultural exports to other countries in Africa Indicators were compared to rank & select countries based on their performances

Our methodology: 4-step approach to select country case studies Step 1: High ranking countries in API Per capita and Imported processing machinery

Our methodology: 4-step approach to select country case studies – cont’d Step 2: High ranking countries in API Per Capita & Share of processed products in total agric exports to Africa

Step 3: Selection of countries that ranked high in both steps 1 and 2, for case study analyses. Ghana, Kenya, Morocco, Senegal, South Africa, and Zimbabwe (highlighted red) Step 4: Of the countries identified in Step 3, those that scored highest for all three indicators were selected for detailed case studies—Ghana, Kenya, and Senegal. Our methodology: 4-step approach to select country case studies – cont’d

Ghana: Food processing R&D, Raw material supply and Product quality R&D and dissemination of context- specific techniques & equipment • Food Research Institute • Cocoa Research Institute • Ghana’s Industrial Policy Sustainable supply of raw materials • One District One Warehouse • Planting for Jobs program Safety and Quality • National Food Safety Policy • National Quality Policy https://foodresearchgh.org/component/content/article/38-about-us/our-achievements/85- trade-industry

Kenya: Promoting investment, Quality products & Skills building Attracting local & foreign investment • Kenya Investment Authority • Export Processing & Special Economic Zones Safety and quality of processed foods • National Food and Nutrition Security Policy • Kenya Bureau of Standards - standards levy Linking producers to food processors • Kenya National Multi Commodities Exchange • Warehouse Receipt System Technical and soft skills training • Kenya Industrial Research & Dev’t Institute • Kenya Institute of Business Training • Micro and Small Enterprises Authority

Senegal: Financing, Investing & Promoting processing SMEs & Skilling Funding food processors & smallholders • Fonds Souverain d’Investissements Stratégiques (FONSIS) • Guarantee Fund for Priority (FONGIP) Encouraging investment in the sector • National Agency for the Promotion of Investments and Major Works (APIX) • Senegalese Investment Code Promoting food processing • National Policy for Food Processing of Agricultural Products • Agro-industrial hubs (agropoles) Skills upgrading & development • Institut de Technologie Alimentaire (ITA) • General Delegation for Rapid Entrepreneurship of Women & Youth (DER/FJ)

Presentation Outline Part One: Main Report Findings Part Two: Lessons from case study countries Part Three: Action agenda and Recommendations Dr. Dorothy Okello, Dean, School of Engineering, Makerere University, Uganda Malabo Montpellier Panel member

Action Agenda and Recommendations 1 4 1. Incentivize the establishment and growth of food processing enterprises • Greater investment in improved equipment & other infrastructure • measures to enhance competitiveness of existing enterprises • Policy coherence across various sectors 2. Increase investment in technical and business skills training relevant to food processing to foster innovation • Advanced machineries require specialized skills in engineering, AI, & IT • Food safety, product development and nutrition experts • Urgent need for a more skilled workforce to develop innovative products

Action Agenda and Recommendations 1 4 3. Strengthen linkages between smallholder farmers and food processing industries • To ensure a reliable supply of raw materials for processors • Supports income generation among smallholders • Through contract farmers and producer organizations & digital platforms 4. Enhance export prospects for processed food products • Strong integrated regional markets and strong performance are critical • Tackle cross-border trade barriers – lower export costs, trade agreements, compliance to standards • A growing opportunity to enter the broader markets with products based on locally produced staples

Action Agenda and Recommendations 1 4 5. Optimizing the nutritional benefits of food processing • Potential to tackle different forms of malnutrition • Reduces waste through preservation, lowers energy needs and meal preparation time • Increase efforts to enhance or maintain nutrient content right throughout value chain

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