Sub-Saharan Africa may be the world’s fastest-growing region, but it is also losing billions of dollars each year through inefficiencies in food systems and trade.
An estimated 37 percent of food produced in the region is lost before it even reaches the market, costing economies roughly 92 billion dollars annually. At the same time, regional air travel remains prohibitively expensive despite reform pledges, while major commodity producers are seeking to capture more value from their exports.
IFAD Targets Africa’s “First Mile” to Cut Food Losses
To address agricultural inefficiencies, the International Fund for Agricultural Development (IFAD) is focusing on what it calls the supply chain’s “first mile” — the critical stage between smallholder farmers and formal markets.
Speaking to Business Africa, IFAD Vice-President Gerardine Mukeshimana explained that the organization is aligning its investments with the Comprehensive Africa Agriculture Development Programme (CAADP) Kampala priorities, aiming to transform subsistence farming into bankable agribusiness ventures.
The strategy includes improving rural infrastructure, strengthening farmer cooperatives, expanding access to finance, and de-risking agricultural investment to crowd in private capital.
According to IFAD, early results show that blended finance models and public-private partnerships are helping attract private investors into areas traditionally seen as too risky. By reducing post-harvest losses, improving storage, and strengthening logistics, projects are increasing farmer incomes while building commercially viable value chains.
Can Rural Entrepreneurship Absorb Africa’s Youth Bulge?
With Africa’s youth population growing rapidly, the pressure to create sustainable employment is intensifying.
IFAD argues that rural entrepreneurship — particularly in agro-processing, logistics, and digital services — offers significant job creation potential. Its programmes focus on skills training, access to credit, and integrating young entrepreneurs into structured value chains rather than informal markets.
Evidence from IFAD-supported initiatives suggests that youth-led agribusinesses are generating income beyond subsistence levels, especially where infrastructure and market access are improved simultaneously. However, scaling these models across the continent remains a challenge, particularly amid fiscal constraints and declining external development support.
The organization’s 14th replenishment aims to help governments maintain investment momentum by offering concessional financing and leveraging additional private capital — a critical tool at a time when many African countries face rising debt servicing costs.
ECOWAS Aviation Reforms Yet to Deliver Cheaper Flights
In West Africa, leaders of the Economic Community of West African States (ECOWAS) pledged to lower regional airfares after announcing significant aviation tax cuts in December, with implementation scheduled for January 2026.
The reforms were designed to reduce one of the world’s highest regional flight costs, which have long constrained trade, tourism, and business mobility across the bloc.
However, nearly two months into the new year, passengers report little change in ticket prices. Industry analysts point to slow regulatory harmonization, airline cost structures, and currency volatility as factors delaying tangible fare reductions.
From Abuja, correspondents report that while governments have signaled political commitment, operational execution — including coordination between aviation authorities and carriers — remains uneven.
The question now is whether ECOWAS can translate policy announcements into measurable cost reductions that improve regional connectivity.
Ghana Moves Up the Cocoa Value Chain
Meanwhile, Ghana is taking steps to capture more value from its cocoa industry, a sector that has long relied on exporting raw beans.
The government plans to process up to half of its cocoa domestically — a move aimed at boosting export revenues, strengthening local manufacturing, and improving incomes for farmers.
Currently, much of the value addition in chocolate production takes place outside Africa, despite the continent producing the majority of the world’s cocoa beans. By expanding local processing capacity, Ghana hopes to increase foreign exchange earnings while creating industrial jobs.
The strategy aligns with a broader continental push toward value addition and industrialization, reducing dependence on raw commodity exports.
