AGRA has released the 3rd edition of the ‘African Agribusiness Outlook Report’ today, highlighting the impact of the “Triple Crisis” – the Covid-19 pandemic, climate change, and the Russia-Ukraine conflict – on small and medium-sized agribusinesses in Nigeria, Zambia, and Tanzania.
The report, a joint effort by AGRA and IPSOS, surveyed 1,623 agribusinesses in the rice, maize, and tomato value chains in Nigeria, Zambia, and Tanzania, and the soybean, maize, and tomato value chains in Zambia.
Findings reveal significant revenue declines for a considerable proportion of agribusinesses during this period, with only some managing to recover.
According to the report, agribusinesses in agricultural value chains in Nigeria, Tanzania, and Zambia have been severely affected by the “triple crisis”. While larger businesses in Nigeria and Zambia were hardest hit in 2020, they appear to have better recovery prospects by 2023.
Supply chain disruptions, decreased productivity, and reduced consumer demand have been major challenges faced by businesses. The report discloses that 58% of SMEs surveyed have experienced substantial revenue declines of 20% or more throughout the “triple crisis” period.
Strategies employed by businesses to mitigate these challenges include injecting additional capital, implementing cost-reduction measures, and streamlining product lines.
Dr. Agnes Kalibata, President of AGRA, noted the adaptability and innovation exhibited by agribusinesses amidst disruptions but emphasized the need for support to address the cumulative impact of the triple crisis.
The report underscores the critical role of agribusinesses in driving resilience, economic development, and poverty alleviation across Africa. Urgent measures are needed to address the sector’s challenges and capitalize on its potential.
Recommendations include collaborative efforts among policymakers, financial institutions, and development organizations to provide supportive ecosystems and address the top asks of agribusinesses: access to affordable finance, a conducive business environment, and support for regional trade.
Key findings from the report include:
Revenue declines in Nigeria (51%), Tanzania (44%), and Zambia (21%) since the 2019 Covid-19 outbreak.
Impact varied across sectors and business sizes.
Climate change concerns, particularly unreliable rainfall.
Causes of revenue decline include high transport costs and low-profit margins.
Strategies to mitigate challenges include capital injection, reduced staff costs, and loan uptake.
The full report, ‘From Crisis to Opportunity: The 2023 Africa Agribusiness Outlook’, is available for download alongside a fact sheet containing key figures from the report.
Download Document 1: https://apo-opa.co/3wFHDt7
Download Document 2: https://apo-opa.co/49GruT3
