Lusaka, Zambia

THE Common African Agro-Parks Programme (CAAPs) prospects to externalize about US$50 billion per year from imported food commodities from outside the continent, it has been revealed.

CAAPs was established in 2019 as on of the initiatives of the Comprehensive African Agricultural Development Programme (CAADP) and given the mandate to boost local processing and regional trade for agricultural commodities and their value chains.

However, the trend is about to change owing to the promotion of intra-trade in Africa.

The Common Market for Eastern and Southern Africa (COMESA) assistant secretary general in charge of the programme Mohammed Kadah said CAAPs seeks to reverse externalization of funds by promoting cross-border agriculture value chains and attracting investments in agro-industrialization.

Dr. Kadah was speaking during the opening of a coordination meeting of CAAPs recently.

“Over the last five years, African countries have collectively spent approximately US$50 billion annually to import food products. Shockingly, this figure is expected to rise to US$110 billion per year by 2025…” he said.

He said with the projected increase in Africa’s population by 2050, there will be need for significant increase in agricultural production to ensure sufficient, affordable, healthy and nutritious food for all Africans.

Dr. Kadah said Africa should draw lessons from the disruption of supply chains caused by the COVID-19 pandemic, which exposed the continent’s vulnerability to external shocks.

He said the crisis in Ukraine also highlighted Africa’s dependence on external sources for food products and agricultural inputs.

Dr. Kadah said the two episodes demonstrate the need to break free from dependence on international food markets.

“It is clear that Africa’s inability to claim its food market, which is currently outsourced from the rest of the world, is a significant source of concern for African countries and international partners” he said.

Dr. Kadah also said lack of Industrial capacity to process and add value to raw agricultural products results in post-harvest losses and meagre revenues for farmers.

He thanked the African Union (AU) for the initiative to establish five common agro-industrial zones in the five geographical regions of the continent.

And African Union Development Agency (AUDA-NEPAD) head of Environmental sustainability division Mamadou Diakhite said full implementation of CAAPs strategies will promote regional agro-forestry industrialization in Africa.

The CAAPs programme was ratified as a flagship initiative of the AU Agenda 2063 during its 36^th Summit in February 2023 to create transboundary mega agro-industrial hubs across Africa.

This falls within the CAADP framework and the AU Agenda 2063.

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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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Lusaka, Zambia – October 17, 2023: Regional Economic Communities in Africa are set to meet this week to drive forward a proposal for mega agro-industrial hubs across the continent that would boost agricultural development. The Common African Agro-Parks (CAAPs) are aimed at boosting regional trade for agricultural commodities, increasing local processing of key agricultural products and reducing food import. This significant event will occur from October 18 to 21, 2023, at the COMESA headquarters in Lusaka, Zambia, with support from the Food and Agriculture Organization of the United Nations (FAO) through its Technical Cooperation Programme (TCP).

Partners participating in the meeting include the Africa Union Commission, the African Union Development Agency, the Common Market for Eastern and Southern Africa, the Food and Agriculture Organization, United Nations Industrial Development Organization, United Nations Economic Commission for Africa, the Pan-African Agribusiness Chamber, the Pan-African Farmers Organisation, the Africa Business Council, IFPRI, African Continental Free-Trade Area, Afreximbank, African Development Bank and the CAAPs Secretariat hosted by the Forum for Agricultural Research in Africa. The rest are country representatives from Zambia and Zimbabwe, key private sector players such as Bühler Group, Grüner, BRICS as well as the World Food Programme.

The Third Ordinary Session of the Specialized Technical Committee (STC) on Agriculture, Rural Development, Water and Environment, held on 21-25 October 2019 in Addis Ababa, widely discussed the benefits of agro-industrialization to the continent and resolved to adopt the Common African Agro-Parks (CAAPs) as a programme contributing to the implementation of the African Continental Free Trade Area (AfCFTA). The CAAPs Programme was finally ratified as a flagship initiative of the AU Agenda 2063 during its 36th Summit in February 2023.

The CAAPs initiative aims to create transboundary mega agro-industrial hubs across Africa. This ambitious endeavour falls within the Comprehensive African Agricultural Programme (CAADP) framework and the AU Agenda 2063. Its overarching objective is to drive the industrialization strategy of African governments and RECs, transforming economies from traditional raw material exporters to agro-industrial powerhouses.

Despite Africa’s abundant fertile land and a burgeoning young workforce, the continent spends approximately USD 50 billion ($50b) annually importing food commodities.

The CAAPs program seeks to reverse this trend by promoting cross-border agriculture value chains, attracting private sector investments in agro-industrialization, and establishing sustainable cross-border policies within the context of the African Continental Free-Trade Area (AfCFTA).

Over four days of intensive interaction, the Directors of RECs and CAAPs Technical Working Groups (CAAPs-TWG) Experts will strengthen collaboration, build synergies and draw actions to accelerate the implementation of this initiative.

Firstly, they will raise awareness among RECs about CAAPs, facilitating subsequent sensitization of AU Member States and fostering a knowledge exchange regarding regional agro-industry development within the AfCFTA framework.

Also, they will solicit feedback from RECs regarding the CAAPs process, necessary infrastructure, governance, and legal models, and the AfCFTA instruments vital for creating a conducive business environment for transboundary Public-Private Partnerships (PPPs) in CAAPs.

Again, they will deliberate on the mapping exercise for future agro-industrial development in Africa, with a practical case study of the ZimZam CAAPs location. RECs are expected here to propose locations for the 10 CAAPs Demonstration Projects ( 2 per region) and for the 5 larger CAAPs (one per region) envisioned by the African Union.

Finally, they will forge a harmonized process for RECs’ engagement with countries and stakeholders within their respective regions, including the private sector and regional banks, to prepare for CAAP implementation.

At the end of the four days meeting, participants would have (i) compiled feedback from RECs on the CAAPs process, infrastructure models, and the required legal instruments for joint governance and PPPs in transboundary settings within the AfCFTA context; (ii) agreed on a harmonized process for engagements with countries; (iii) compiled and validated feedback of criteria for mapping future transboundary agro-industrial development zones in Africa; (iv) developed a joint roadmap for rolling out CAAPs in AU Member States; and (v) developed action plans for joint resource mobilization and partnership engagement among RECs to develop CAAPs.

This Inaugural Coordination Meeting marks a pivotal moment in Africa’s agricultural and industrial transformation pursuit. By fostering collaboration and knowledge sharing among regional economic communities, this event lays the foundation for a sustainable, prosperous, and food-secure future for the continent.

You may visit https://faraafrica.org/caaps/ for details about the CAAPs initiative.

For media inquiries and further information, please contact:

FARA – Benjamin Abugri at babugri@faraafrica.org

FAO – Zoie Jones at Zoie.Jones@fao.org

COMESA – Daniel Banda at dbanda@comesa.int

 About AUDA-NEPAD:

The African Union Development Agency-NEPAD (AUDA-NEPAD) is the development agency of the African Union, promoting partnerships for the transformation of Africa as an integrated, prosperous, and peaceful continent.

Visit  https://www.nepad.org/ for more information.

About COMESA:

The Common Market for Eastern and Southern Africa (COMESA) is a regional economic community of 21 member states. It brings together over 600 million people into a cooperative framework for sustainable economic growth and prosperity through regional integration.

Visit https://www.comesa.int/ for more information.

About CAAPs & FARA:

The Common African Agro-Parks Programme (CAAPs) is an African Union Commission (AUC) initiative to establish transboundary mega agro-industrial hubs across Africa to drive industrialization and food security. It is hosted by the Forum for Agricultural Research in Africa (FARA), an apex continental technical institution of the AUC headquartered in Accra, Ghana.

Visit  https://faraafrica.org/ for more information.

About FAO:

The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger. FAO currently provides institutional support to the CAAPs Secretariat, hosted by FARA, to coordinate stakeholders’ consultations and leadership engagement for greater ownership of the CAAPs; formalize partnerships with the technical partners for the design and establishment of the CAAPs; and to build the capacity of stakeholders to support the decision-making process at the various African Union organs.

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