Common African Agro-Parks (CAAPs) are vehicles aimed at driving cross border projects to leverage on initiatives which focus on priority or strategic commodities. It is envisioned this approach will spur economic development and transformation in Africa, as espoused within the framework of the African Union (AU) Agenda 2063.

Principal Advisor, Value chains, Office of the Secretary General Themba Khumalo explains that CAAPs involves agreed actions between two countries to identify trade opportunities.

“Our target is to have excess food for trade and where there are domestic projects that will be supported, CAAPs aims to promote regional integration and trade,” Mr. Khumalo said.

Mr. Themba Khumalo, Principal Advisor, Value chains, Office of the Secretary General, AfCFTA.

To catalyze CAAPs, it’s about countries justifying their projects within their Regional Economic Communities (REC) for the implementation of the Common African Agro-Parks programme. Once countries identify and concretize their projects, they need to sign agreements and trade. For these CAAPs to be viable and translate into tangible results, there is a need to ensure private sector investment.

Mr. Khumalo says when pursuing these investments, there will be a need for private sector players to be able to present their projects and mobilize resources to actualize trade agreements.

He clarifies whatever projects exist in countries aside the identified CAAPs continues although it is better to be enshrined in the regional investment plans for purposes of recognition as a CAAPs regional integration plan.”

“We need to radically change the way we work to actualize and achieve the goals of the CAAPs,” Mr. Khumalo says.

He advised that countries need to look at their own domestic interests, what exists and how best it can be scaled up. This should be coupled with a commitment to create an enabling policy environment for trade and, among others, to avoid any barriers between countries wanting to promote trade in their RECs.

Mr. Khumalo explained that for the CAAPs to be recognized and supported, a certain criterion needs to be met as spelled out in the Abuja declaration.

The Abuja declaration criteria outlines some of the critical elements of setting up a CAAPs within a RECs. Among them is considering the nature of strategic importance in relation to integration, economic growth, and food security. Further, there is a need to ascertain what is on the ground in the context of feasibility of project, as there must be a base to engage some of the partners for pre-feasibility.

This means when looking at most entities, they will be needed for feasibility study, which will entail the community having basic information to decide and demonstrate the ability to promote regional boosting. Overall, there is need to look at whether countries can commit from a policy point of view as a country outside investor zones to enable private sector to make those decisions. It is key for countries to critically look at their comparative advantages and harmonize their investments with financial commitment towards agreed value chains.

A typical case of a CAAPs is the trade agreement between Zimbabwe and Zambia dubbed “Common Agriculture Industrial Park (CAP)” signed between the two countries in 2021. The partnership between the two countries is valued at over US$12 million.

Speaking in Lusaka during the inaugural coordination meeting of Regional Economic Communities (REC) for the implementation of the Common African Agro-Parks programme, Ministry of Industry and Commerce, Chief Director Florence Makombe from Zimbabwe, explains that the trade agreement rides on the already existing bilateral trade.

Chief Director Florence Makombe, Ministry of Industry and Commerce, Zimbabwe

Ms. Makombe disclosed that the agriculture industrial park between the two countries includes the following value chains: Soyabean, dairy, wheat, horticulture, maize, and fisheries.

“There has been progress made on the Zimbabwe and Zambia on the agreement. There is need to adjust from the last meeting held in Harare were looking at the legal framework,” She said.

Ministry of Commerce, Trade and Industry, Director Industry, Musokotwane Sichizuwe says Zambia has the capacity in terms of the agriculture sector also given the favorable weather.

Mr. Musokotwane Sichizuwe (left), Zambian Ministry of Commerce, Trade and Industry with colleague Chipoka Mulenga (right)

Mr. Sichizwe says once a feasibility is conducted in Zambia, it will help unpack most of these criteria requirements.

“Zambia has prioritized farm blocks. Initially, the focus was on special economic zones but now it is extended to farm blocks. It aligns well given that we are trying to do some of these things at a regional level,” he disclosed.

Mr. Brian Ngandu, Ministry of Agriculture, Zambia

Ministry of Agriculture, Brian Ngandu says Zambia and Zimbabwe have enjoyed a long-lasting trade relationship. This is an advantage to both countries as their identified trade agreement is likely to stimulate increased trade.

While, Zambia and Zimbabwe may not have same the land polices, the implication is that both countries may need to reform policies to align with goals of CAAPs and strengthen this agro park initiative to attract and unlock business opportunities in order to enhance trade between the two countries. – National Agricultural Information Services

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AFRICA is spending about US$50 billion every year importing food from other parts of the world. This situation poses an opportunity for African countries to reposition themselves in a bid to make the continent food secure.

This led the African Union Commission to conceptualise the Common African Agro-Parks (CAAPs) aimed at attracting private investments to establish transboundary mega agro industrial hub on the continent.

The Common African Agro-Parks is a mega initiative of the African Union to create regional agro-industrial hubs aimed at responding to the continent’s demand for interventions at boosting local processing and regional trade for agricultural commodities and their value chains.

To come up with innovative solutions to drive the CAAPs, Common Market for Eastern and Southern Africa (COMESA) hosted member states who convened in Lusaka recently to share ideas and experiences to better address the intra and regional trade meant to enhance agricultural commodities and value chains.

The CAAPs will help the agro-allied sector of the Africa economy to deliver on the AU Agenda 2063 aspirations within the framework of the Africa Continental Free Trade Agreement (AfCFTA).

Initiated in 2019, CAAPs is one of the initiatives of Comprehensive African Agricultural Programme (CAADP) to be implemented within the framework of the African Union (AU) agenda 2063 to achieve the CAADP Malabo commitments, particularly the commitment to “triple intra-African trade in agricultural commodities and services.”

The programme seeks to promote and facilitate local and regional as well as food production. In this way, achieving self-sufficiency of key agriculture commodities in Africa remains a critical milestone.

CAAPs Programme Coordinator, FARA Anselme Vodounhessi explains that CAAPs aspires to stimulate local and regional private sector investment in agriculture.

Mr. Vodounhessi says Africa has abundant resources but need to actualise economic opportunities by aggressively engaging in value chains in the agriculture sector which are viable and profitable.

He reaffirms Africa has lots of arable and abundant land which needs to be exploited in order to create and build a desired Africa.

Generally, Africa has good strategies but the major bottleneck is the implementation. According to Chief, Regional Division for Africa, UNIDO Victor Djemba explains that coordination of key actors in the implementation process of value chains in the agriculture sector remains problematic.

Mr. Djemba acknowledges that the private sector does a lot work but in isolation, hence the need for them to work in a concerted manner with sector players. This, he argues requires the proposed industrial parks to work effectively, needs inclusivity of private sector participation from project inception within the existing structures.

“It’s not the work of one entity but all entities need to be involved for a successful development of key players in the establishment and development of industrial parks,” he said.

Mr. Djemba said key players need to be involved in the whole process of implementation.

“Involving investors from inception requires embracing the laws and rules of both countries to provide an enabling environment for industrial parks to thrive,” he said.

Rural Development, Agro-Industries Agro-Industrial Parks Unit, UNIDO Project Officer Andrew Goodwin explains that everything which is set-up in agro-processing zones is business focused and has to be a long-term approach. Therefore, there must be commitment to develop agro-processing zones in industrial parks. It is obvious this approach needs an enabling environment to succeed.

Mr. Goodwin further says industrial parks are able to flourish through leases and services offered to the public.

For instance, industrial parks in Ethiopia and Senegal have been successful because they make their revenue from generation developers as they have invested in building sheds, installed power, water and other necessities within the parks.

These processing companies provide services such as commercial services, resource centres, among others which enable them to broaden resource base and maximise on their  profits. Its also imperative to take cognizant of the prevailing climate change conditions. This should inform sector players to build climate resilience.

Mr Goodwin said these integrated agro-food parks refers to central processing hubs which strive to reach out to rural areas from world transformation centres. For example, breeding, storing, collection centres at farmer level and cooperatives would also have these centres for processing.

He further said it was impressive that farmers in Ethiopia and Senegal are developed with cooperative unions, which closely work with the Ministry of Agriculture and also have bidding bilateral agreements.

With the success model of Ethiopia and Senegal, it is clear agriculture is the answer to creating prosperity and will always be the most economically viable sector to focus on for generations to come.

CAAPs aspirations is for member states to mobilise domestic resources to invest these into agro-parks and ensure a food secure continent. It is imperative to take into account the success of this programme needs a lot of resource mobilisation. The member states can co-create and unlock opportunities for the transboundary setting to enable Africa flourish. – National Agricultural Information Services.  

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