Opening Africa's Agri-corridors

Two groundbreaking private-public partnerships aim to de-bottleneck agricultural commodity streams and catalyze Agricultural Growth Corridors in Africa.

Thorleif Enger, President of the International Fertilizer Industry Association and CEO of Yara International, announced the two innovative partnerships at the first-ever UN Private Sector Forum, part of the UN General Assembly. Mr Enger also met with UN Secretary-General Ban Ki-Moon to discuss a broader plan to create regional Agriculture Growth Corridors in Africa. 

The partnerships, which involve the investment of USD 60 million by Yara International to build fertilizer terminals, will develop the port facilities in Beira, Mozambique and Dar es Salaam, Tanzania into regional distribution hubs for agricultural inputs. The current ports system in these countries is highly ineffective, with fertilizer shipments taking three to four times longer to clear customs and be delivered to the farmers than at other ports.  The port projects aim to speed up this process and make fertilizer available all-year-round by establishing a holding warehouse that can streamline effective distribution.

Without improved port facilities Tanzania, Mozambique and the surrounding regions will be unable to meet their agricultural growth targets.


Agricultural Growth Corridors
The port investments are the cornerstone of two broader government-endorsed partnerships in Tanzania and Mozambique which aim to use improved inputs efficiencies and infrastructure management as a catalyst for wider agricultural growth across the region.  Once the ports are establishing as regional hubs, the door is open for governments, multilateral organizations and private sector partners to make broader social and economic investments along the value chain, thereby creating Agriculture Growth Corridors.

The Growth Corridor concept incorporates a coordinated approach to developing regional rail/road networks and storage facilities, improving agro-dealer networks and farmer field school promotion, and providing affordable rural agricultural credit. With its emphasis on cross-sectoral coordination and integration to accelerate agricultural growth, the concept is evidence of the more holistic approach to agricultural development based on close public and private sector cooperation previously endorsed by Thorleif Enger at the FAO Food Crisis Summit in June.


Growth Partnerships
At the UN Private Sector Forum, Mr Enger reiterated that: "Business can be a principal enginefor development in the agricultural sector and Yara is focused on making new investments that have the potential to catalyze growth for years to come," before underlining the need for private-public partnerships to develop the Agricultural Growth Corridors concept and support Africa’s agricultural development.

At the current pace, it is estimated that Africa will be able to feed less than half of its population by 2015. However, research shows that with better access to fertilizer, Africa's food production could be tripled in the same period. Thorleif Enger sees the Agricultural Growth Corridor concept as an urgently needed partnership model for tackling food insecurity in Africa.

“Yara’s growth partnership approach is part of our commitment to develop a strong base for African agriculture and our pledge to support the Millennium Development Goals,” says Thorleif Enger, “I believe it will help address key agricultural value chain constraints and opportunities, expand domestic production and improve market access for African smallholder farmers.”

If the partnerships in Tanzania and Mozambique are successful, Yara International will consider replicating the model in other parts of Africa.

High-level Endorsement
UN Secretary-General Ban Ki-Moon’s endorsement of the Growth Corridor concept at the UN Private Sector Forum also marks the beginning of a closer partnership between the United Nations and the private sector to address the global food crisis and scale up support for the Millennium Development Goals.

The Forum, which gathered a group of 100 CEOs, civil society leaders, heads of foundations and UN Agencies, launched the “Business Call to Action”, aimed at engaging private enterprise in achieving the MDGs, as well as the “Framework for Business Engagement with the United Nations”, developed to more effectively mobilize private sector efforts. 

Participants and media attending the UN Private Sector Forum reacted favorably to the Agricultural Growth Corridor model and its innovative approach to crossing traditional boundaries and creating broad partnerships.

Former US President Bill Clinton explained how, during his presidency, all discussions about food had been related to subsidies paid to growers and the provision of food relief.  There had been almost no discussion about increasing people’s ability to grow, store and market their own food. 

Douglas Alexander, UK Secretary of State for International Development, praised companies like Yara, Map International and Ericsson for
joining the Business Call to Action, saying "Business has a vital role to play in reducing poverty…” concluding that ”the time has come to step up activity to meet the MDGs and ensure a safer, developed and more prosperous world."