Russia-Ukraine crisis highlights Africa’s need to diversify its wheat sources

The war between Russia and Ukraine has highlighted just how much of the world’s wheat supply relies on these two countries. For instance, a recently released UN report shows a sample of 25 African countries that rely on wheat imports from Russia or Ukraine. Of this group, 21 import most of their wheat from Russia.

Between 2018 and 2020, Africa imported US$3.7 billion in wheat (32% of the continent’s total wheat imports) from Russia and another US$1.4 billion from Ukraine (12% of the continent’s wheat imports).

It’s crucial that African countries diversify their wheat sources for two key reasons.

First, wheat forms an important component of diets. Not having enough brings the threat of hunger and political instability.

Over the centuries, the sourcing of wheat has factored into the political and strategic decisions and security of many countries.

Consider the ancient Greek city-state of Athens: in the fifth century BC, Athens had to feed an ever-growing population. Officials turned towards parts of Egypt, Sicily, Syria and the Black Sea region to fill Athenian granaries – a pattern of expansion and trade which has often been repeated in world history.

Nazi Germany addressed food shortages via its Hunger Plan –- a policy for the seizure of food from the Soviet Union to feed German soldiers and civilians.

During the Cold War, the US used its advantage as a major wheat-producing nation to influence decision makers and cement support among states. Wheat exports accompanied American military deployments around the world.

In 2022, the geopolitics of wheat has once again come under the spotlight with Russia’s invasion of Ukraine.

As experts on foreign relations – with a focus on African political economy  and trade and agriculture in Africa – we wanted to highlight the dependency of many African countries on wheat supplies from these two warring nations, and we wanted to stress the need for the region to diversify its wheat sources.

Global wheat supply

Russia and Ukraine are among the world’s top 10 wheat producers (which are mostly based in the Global North) and among the five biggest wheat exporters. Together, the two represent 27% of the global trade in wheat.

Even before the Russian invasion of Ukraine, global food prices were already rising. This was mostly as a result of sub-par harvests, increased transport costs and supply chain disruptions caused by COVID-19.

The Russia-Ukraine war has further compounded global uncertainties making the agro-food market jittery, further escalating global food prices and the prices of agricultural materials, such as fertiliser.

Since Russia invaded Ukraine, concerns over wheat supply disruptions, especially from the Black Sea region, have significantly increased wheat prices. Between January and February 2022, global wheat prices increased by 2.1%.

A rise in wheat prices can have significant knock-on effects given the importance of bread to daily diets around the world.

The African impact

Increases to the price of foodstuffs presents a double threat: it increases the levels of food insecurity and poverty.

Wheat is widely consumed across the African continent. Between 2000 and 2009, in sub-Saharan Africa alone, wheat consumption increased at a rate of 0.35kg/year, outpacing maize and rice. It became an important crop and staple due to rapid population growth, increased urbanisation, and changes in food preferences. Consumers in Africa use wheat for easy and fast food, such as bread, biscuits, pasta, noodles and porridge.

Moreover, some countries in Africa —- such as MoroccoEgypt, and Sudan -— are providing bread subsidies to poor communities to alleviate hunger and malnutrition.

Although wheat is consumed widely across the African continent, crop yields are relatively low compared to major producing wheat regions, especially in the Global North. Reasons range from extreme weather conditions to water scarcity, poor soil quality and poor irrigation systems.

As a result, African nations rely on imports to meet the demand and need for wheat. For instance, during the 2020/2021 trade year, African imports of wheat reached 54.8 million metric tons, whereas the continental production of wheat amounted to 25.7 million metric tons.

Urgent lessons

The situation highlights the need for African countries to diversify their wheat imports and invest in expanding domestic production capacity.

For example, Egypt —- which relies on Russian and Ukrainian wheat imports as the world’s largest importer of the crop —- will rely on its wheat reserves which is estimated to last until the end of 2022. The hope is that it will be able to secure other suppliers by then. If Egypt fails to secure other wheat imports, sharp spikes in the cost of wheat could severely affect the Egyptian government’s ability to keep bread prices at their current subsidised level.

Egyptian history presents its current government with a warning of what to expect if bread prices continue to increase. In 1977, an attempt by then-president Anwar Sadat to increase bread prices set off deadly riots which didn’t subside until the decision was rescinded. Coupled with the country’s historic protests associated with the Arab Spring, such warnings are hard to dismiss.

National, regional and continental organisations have recognised the pressing need for Africa to increase its wheat production to avoid these scenarios.

In the wake of the Russia-Ukraine war, the African Development Bank is on a mission to raise US$1 billion to assist 40 million African farmers to use climate-resilient technologies and to increase their yields of heat-tolerant wheat varieties and other crops.

Harsh truths

When it came to voting on the two UN General Assembly resolutions demanding Russia’s withdrawal from Ukraine, just a little over half of the African votes was in favour of Ukraine, while others abstained or voted against the resolutions. Most reports on Africa’s divided vote focus on military and political alliances, as well as political ideological leanings. The power of food -– and specifically wheat —- has been largely overlooked.

Aside from trying to figure out the motivations for how African countries voted at the UN, the Russia-Ukraine crisis has, more importantly, shown that several African countries need to diversify wheat imports and invest in becoming self-sufficient. This has to be done with some urgency to protect themselves against global shocks – whatever their origin.

Article courtesy of The Conversation under Common License

View more

Minister Didiza praises Illovo South Africa for life-changing development project

The Minister of Agriculture, Land Reform and Rural Development Thoko Didiza has praised the sugar giant Illovo South Africa for the successful culmination of its R127-million life-changing Small-Scale Grower Cane Development Project that has created over 860 sustainable jobs in KwaZulu-Natal while empowering women to participate in the rural economy.

The Minister was visibly pleased after being taken on a site visit on the KwaZulu-Natal South Coast to witness first-hand the development of 3 000 hectares of cane on communal land by small-scale growers using a sustainable model of development aligned to the national transformation agenda. With a R63-million grant from the National Treasury’s Job Fund matched by R63-million funding by Illovo Sugar South Africa, 119 local contractors have increased the supply of sugarcane for Illovo’s undersupplied Sezela factory by doubling the original 150 000 tonnes per annum forecast.

“The contribution of black commercial farmers in the country’s agricultural economy was still low and these low levels of inclusion call for serious intervention from both the Government and other stakeholders in driving inclusive growth” said Minister Didiza.

“We need more public-spirited players like Illovo Sugar who are willing to work with government in order to leverage our resources in the commercialisation of black farmers, while we ensure that we give meaningful support to those who are beneficiaries of land reform.”

The Minister added that after recognising different challenges constraining the growth and development of commercial and emerging farmers in the country, the Agriculture and Agro-processing Master Plan (AAMP) had recommended the adoption of a “Theory of Change” to train farmers and grow the agricultural sector in an inclusive manner.

The theory advocates for a co-existence of commercial and emerging farmers to promote the agricultural and food sectors on a new growth trajectory that can ultimately contribute to taking South Africa’s economy out of the “Middle Income” trap.  The conceptual framework for this Master Plan has been concluded, and the sector partners are to meet for consultation in June 2021. This Master Plan is complementary to the Poultry and Sugar Master Plans.

Illovo Sugar MD Mamongae Mahlare said the Small-Scale Grower Cane Development Project is clear validation of the great potential that exists for partnerships between businesses and their host communities on the one hand, and government on the other, to reduce poverty and stimulate economic activity. “We could not have achieved this level of success alone. The confidence of the Jobs Funds which met us halfway with concessional funding, and the support of other stakeholders including the SA Canegrowers Association and the South African Farmers Development Association, have been integral to this revolutionary project.

“The collaborative multi-stakeholder approach to bring a local system of innovation to life in just three years has resulted in 1 704 growers being given the opportunity to develop cane on their land.”

Mahlare said the small-scale grower development project created direct jobs in rural communities while implementing socioeconomic and enterprise development initiatives and the transfer of valuable farming and business skills. By leveraging on the built capabilities and securing a spot in the Illovo Sugar value chain, communities will earn upwards of R80-million in income annually.

“Since the capacity to work the land resides within the communities in the form of the upskilled local contractors, there is a multiplier effect as this new money is spent within the community and is catalytic to broader economic activity,” she added.

Najwa Allie-Edries, head of the Jobs Fund who also attended the celebratory event, said building the capability of smallholder farmers must move beyond the debate about land ownership. The imperative now is to find creative solutions to long-term access to land, while providing appropriate support to build sustainable new-era farmer capability, she said.

“In spite of significant growth potential in the agricultural sector, opportunities and benefits are not widespread. The sector is characterised by a huge capacity gap between commercial and smallholder or emerging farmers, placing the latter in a disadvantageous position in terms of accessing opportunities, markets and value chains.

“Robust and localised agriculture and agro-processing systems are crucial for food security, economic diversification and creating jobs. Hence, more than 30% of the Jobs Fund’s portfolio of projects are implemented within the agricultural sector.

“Developing a sustainable sector means growing both the farm and the farmer and expanding the opportunities available to them. It can’t be one or the other; the same level of effort put into crop development must also be put into the farmer and his or her business.

“Illovo Sugar must be commended for reducing barriers to entry for emerging farmers and addressing challenges that hamper their ability to grow sustainably,” she said.

Nomanesi Ngcobo, a small-scale grower who was developed through the Illovo project told Minister Didiza that she took over her late husband’s role and sugarcane that had been planted years before was no longer growing.

She said: “The project came at a crucial time for us because the eMalangeni area had run out of sugarcane and many growers were struggling. Sugarcane farming is our bread and butter – it allows us to pay for our children’s education.

“This has been a life-changing experience and we are so grateful to Illovo Sugar for empowering us and enriching our lives.

“To be part of the cane grower’s community as a black woman makes me happy, especially having come from an impoverished background,” said Ngcobo.

What is the background of the project?

An under-supply of sugar cane into the South Coast mills necessitated action to be taken to re-establish sugar cane in the Small-Scale Grower areas that were lying fallow and within a close proximity to the affected mills. A sustainable development model was sought to ensure the future cane supply in the SSG areas.

What was the overall aim of the project?

To ensure equitable, inclusive and sustainable growth, leveraging sugarcane as a catalyst for rural development, while ensuring a secure supply to the Illovo mills. To this end, Illovo Sugar SA committed to:

  • Develop contiguous areas of tribal land to sugar cane
  • Develop and empower previously disadvantaged cane growers and contractors
  •  Create employment and contribute to development in the rural areas
  •  Create SMME service providers; and
  • Increase cane supply to the Illovo Sugar mills

What was initiated to address this problem?

In partnership with National Treasury through the Jobs Fund, Illovo Sugar SA initiated a project to develop up to 3 000 hectares of small-scale grower cane land around all the areas within which it operates on the KZN South Coast resulting in the creation of 1 188 new jobs and the training of 1 630 people.

What were some of the challenges to be overcome?

  • How to introduce economic activity on communal land
  • The high cost of entry and lack of suitable, continuous funding
  • Lack of grower and service provider capability

How was funding sourced?

Operating under the Department of Trade & Industry, the Jobs Fund was launched in June 2011 and an amount of R9 billion was set aside. The objective of the Jobs Fund is to co-finance projects by public, private and non-governmental organisations that will significantly contribute to job creation. This involves the use of public money to catalyse innovation and investment on behalf of a range of economic stakeholders in activities that contribute directly to enhanced employment creation in South Africa.

In partnership with the Jobs Fund which provided 50% of the R127-million capital, Illovo launched the project to develop 3,000ha of small-scale grower cane land whilst contributing to stimulating activities in deep rural areas, create sustainable employment for black growers and their families, and provide training opportunities for rural households. Illovo put up 15 % of the capital. The remaining 35% was taken as loans by the growers from MAFISA, with Illovo underwriting the debt. The project has created a thriving small-scale growers project on Ngonyama rust land.

Was the project a success?

Illovo’s Small-Scale Grower Cane Development Project is clear validation of the great potential that exists for partnerships between businesses and their host communities on the one hand, and government on the other, to reduce poverty and stimulate economic activity. The collaborative multi-stakeholder approach to bring a local system of innovation to life in just three years has resulted in 1 704 growers being given the opportunity to develop cane on their land.”

What are the outcomes of the project?

The Small-Scale Grower Cane Development Project has created direct jobs in rural communities while implementing socioeconomic and enterprise development initiatives and the transfer of valuable farming and business skills. By leveraging on the built capabilities and securing a spot in the Illovo Sugar value chain, communities will earn upwards of R80-million in income annually. Since the capacity to work the land resides within the communities in the form of the upskilled local contractors, there is a multiplier effect as this new money is spent within the community and is catalytic to broader economic activity.

Purpose of lllovo’s celebratory event

The event is planned to relate Illovo SA’s successes in contributing towards creating thriving rural communities through revealing how the joint programme has and can further act as a blue print for small-scale cane grower development in KZN as well as help other regions and sectors build thriving communities through similarly structured public and private partnerships.

What progress has Illovo made on land redistribution?

To date, Illovo’s own land redistribution initiative has resulted in the sale of 28 086 ha, comprising 55% of its own land portfolio, to black people and resulting in the establishment of more than 50 black commercial farmers.

Cite an example of a successful small-cane grower

Nomanesi Ngcobo took over her late husband’s role and sugarcane that had been planted years before was no longer growing. She said: “The project came at a crucial time for us because the eMalangeni area had run out of sugarcane and many growers were struggling. Sugarcane farming is our bread and butter – it allows us to pay for our children’s education. This has been a life-changing experience and we are so grateful to Illovo Sugar for empowering us and enriching our lives.”

View more

Overcoming the obstacles in the way of Africa’s female farmers

By Bonolo Sophie Maqeba, CEO of Black Women Empowered 

Hailing from Ficksburg, a small town in South Africa’s Free State province, I come from very humble beginnings. Raised by parents who made enormous sacrifices daily, the value of hard work was instilled in me and my three siblings from a very young age. My parents used to say: “We are not rich and we can’t leave you any legacy, but we will give you the little that we have so that you can be educated, and in that way you will be independent enough to work your way up in life.” 

Fast forward to today, and I hold a Master’s Degree in Sustainable Agriculture and am the CEO of Black Women Empowered, an agriculture-focused organisation that I started, after coming to terms with South Africa’s unemployment crisis. 

My inspiration comes from the love I have for my children and the fear that they should not suffer or be job seekers for the rest of their lives. It has always been my vision to leave a legacy for my children. 

Venturing into the agricultural industry, I witnessed and experienced four main challenges.  

I saw that Africa’s women farmers are faced with massive challenges when it comes to accessing land – a critical resource. Even when they do secure land, they face tough tenure systems that are often influenced by biased customary norms and traditions built on the basis of social differentiation and inequality. These systems hinder the growth of Africa’s agricultural production, exacerbate poverty, and contribute to the exclusion of rural women. 

Weak access to finance is another major hurdle faced by women in agriculture. Credit is an effective tool that enables investments and expansion, and that allows farmers to overcome seasonal issues – a considerable lag occurs between the time they incur costs and the time that they are able to generate income from their produce. 

The next challenge is access to information and training. The participation of women in training programmes tends to be low due to a lack of awareness, societal barriers in the form of discriminatory cultural norms, and transportation barriers. 

Finally, the division of labour on the basis of gender is common practice in Africa’s agricultural sector. Women tend to be mainly involved in the production of lower-value subsistence crops. It could be because they have different preferences and concerns, or because they have limited access to land, inputs, credit, information, or markets. In many instances, those that have access to markets are exploited and fetch lower prices than their male counterparts. 

With this in mind, I joined the UN Women- and Standard Bank-backed Climate Smart Agricultural programme (UNCSA). I was driven by the need to find solutions to these pervasive challenges, as well as new challenges brought on by the Covid-19 pandemic. The UNCSA programme strengthened my belief that agriculture and digital technology are the backbone of the economy. 

Prior to joining the programme, I was planting on two hectares of land, and was making small profits due to a lack of resources. A year down the line, my business has grown substantially. I have learned important tricks of the trade, from effective storage for export goods to ensuring that fresh produce is sold quickly to avoid losses. And I want to explore future business opportunities in agro-processing and exports as I grow the business and expand it into the rest of Africa.  

The programme has further fuelled my passion for agriculture. I remain steadfast in my beliefs and continue to draw strength from those women in my family who have shaped me and enabled me to be where I am today. 

My grandmother, Paulina Vollenhoven, raised me and looked after me when my parents were at work. She instilled in me the values and principles that I have today, and she taught me to challenge myself and male-dominated industries – because we can do what they can if given a chance.  

My mother, Flora Vollenhoven, is my pillar of strength. She sacrificed everything to give me a good education and has been with me through my deepest pains and darkest times of struggle. She cheers me on, prays for me, and encourages me to do more every day. I am because she has been. 

I am deeply grateful to them and to myself – Sophie Bonolo Maqeba. I have endured countless struggles and have worked hard to achieve my dreams. I have picked myself up every time I have fallen, I have been brave and outspoken, and I have relentlessly chased my dreams while also single-handedly raising my wonderful children. I plan to leave a legacy rooted in agriculture and the transformation of an industry. 

View more

Syngenta launches 2021 Leadership Academy for Agriculture Programme

With the right leadership, agriculture can heal South Africa – Twenty-eight agriculturists, from grain producers and agri-researchers to a Brahman stud manager and even a beekeeper, started their journey into leadership mastery.

This group, which represents the rich diversity of South Africa’s agriculture sector, is the 2021 class of the ninth annual Leadership Academy for Agriculture programme, sponsored by Syngenta South Africa. “The Academy is our investment in the future of South African agriculture, especially now when food security is more important than ever as we deal with a global pandemic,” says Ben Schoonwinkel, head of marketing for Syngenta South Africa.

“Our objective is to help shape the future of agriculture by equipping the next generation of leaders across the agriculture spectrum to address the real-life challenges that confront our industry. Judging by the contribution that the more than 200 alumni are making, we are indeed impacting the sector positively.”  

Ben Schoonwinkel, head of marketing for Syngenta South Africa

The Leadership Academy for Agriculture programme is supported by Grain SA and is presented in three modules of three to four days each, during which the candidates work in groups to research and present solutions to topical issues facing the local agriculture sector.

The curriculum is developed and facilitated by Thinking Fusion Africa, with the Northwest University Business School as academic partner. Candidates who complete the course therefore add a highly accredited leadership programme to their portfolio of academic achievements.

The impact and reputation of the programme are attested to by the fact that more than 300 young career agriculturists applied to be included in the class of 2021. Many of them were inspired to do so by alumni who described the programme as “demanding” and “rewarding” in equal measure.

In his address, Jannie de Villiers, CEO of Grain SA, emphasised the importance of the programme being aimed at young agri-professionals. He recalled experiencing the leadership development programme Syngenta presented for senior American producers in August 2011. “I was hugely impressed, but it was clear to me that we shouldn’t pour resources into teaching old dogs new tricks.”

Syngenta South Africa supported De Villiers’ conviction that a leadership development programme for the local agri-market had to focus on the younger generation, says Schoonwinkel.

“We need passionate leaders who have the energy and the courage to accept the challenge to drive change in the sector.”

Professor René Uys from Thinking Fusion Africa, who was recently appointed as a professor of practice at the NWU Business School on the strength of her work with the Leadership Academy, says that personal attributes and diversity were taken into account in the selection process.

“This business leadership development programme serves the entire agriculture sector, and we have seen in previous programmes that the more diverse the group is, the more the delegates are able to engage with real-life industry challenges in innovative ways,” she says.

While the purpose of the programme is to equip agri-professionals with the skills to tackle the industry’s challenges, its dream is for agriculture to be the unifying force and leader of economic growth in South Africa. “I believe that agriculture can heal this country, and my mantra is that leaders make things better,” said De Villiers. This, he said, is achieved when individuals change their mindset and behaviour, learn to listen and are open to participate and develop.

View more

The future of water in South Africa’s agriculture sector

As early as 2012 the World Economic Forum (WEF) warned that water security was one of the most significant risks to the planet and its people.

Continue reading View more