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By Reporter
Africa’s urban food market, which now consumes more than 40% of the continent’s food production, is rapidly expanding, primarily fueled by Micro, Small, and Medium-sized Enterprises (MSMEs), according to the 2024 Africa Agriculture Status Report.
This report, titled “Harnessing the Private Sector for Food Systems Transformation in Africa,” was launched during the Africa Food Systems Forum 2024 (AFS Forum 2024) in Kigali, Rwanda, and underscores the critical role MSMEs play in reshaping Africa’s food systems.
The report attributes the growth of Africa’s agrifood value chains to rapid urbanization, which has spurred the development of rural-urban supply chains, driving the rise of MSMEs in food processing, wholesale, logistics, and crop inputs.
Today, Africa’s urban market is the largest food market on the continent, vastly outpacing the export market in size. From 1990 to 2023, Africa’s urban population surged from 145 million to 508 million, leading to a significant rise in food consumption in urban areas.
Thomas Reardon, a professor at Michigan State University and one of the report’s authors, highlighted the private sector’s dominance in Africa’s food economy, noting that MSMEs handle 85% of the continent’s food supply.
Reardon emphasized that 95% of Africa’s farm output is consumed domestically, with only 5% being exported.
Despite their crucial role, MSMEs face numerous challenges, including inadequate infrastructure, limited financial access, and regulatory hurdles.
The report recommends targeted investments in infrastructure, financial support, and regulatory reforms to foster MSME growth and boost food security.
Agnes Kalibata, President of AGRA, stressed the transformative power of MSMEs in shaping Africa’s food systems and called for increased collaboration between governments and the private sector to support sustainable development.
