NAN-HE- 11
Agreement
By Cecilia Ologunagba
Abuja, Dec. 5, 2016 (NAN) Dr Abdulla Hamdok, Executive Secretary of the UN Economic Commission for Africa (UNECA), has urged African governments to implement the Maputo agreement, to achieve agro-allied industrialisation in the continent.
Hamdok, who made the call at the 11th African Economic Conference, on Monday in Abuja, said implementing Maputo agreement would help address chronic under-capitalisation of agriculture.
The Maputo Declaration was launched in 2003 as a response to the stagnation of African agriculture.
The signatories to the declaration agreed that 10 per cent of public expenditure should be spent on agriculture in an effort to increase agricultural productivity.
Hamdok said that the government should devote 10 per cent of public expenditure into agriculture to realise the projected New Partnership for Africa’s Development (NEPAD)/ Comprehensive Africa Agriculture Development Programme (CAADP) goal.
“The NEPAD/CAAP goal is to achieve at least six per cent agricultural growth annually by 2015.
“There is also the need to create an enabling environment for increased access to private credit and insurance schemes for agricultural production, processing and marketing.
“This should include promotion of development finance institutions and credit programme that serve farmers and Small and Medium Enterprises (SMEs).
“Credit schemes can be linked to upgrading of activities by SMEs, including acquisition of technologies and essential skills,’’ he said.
According to him, policies on investment will transform Africa’s agriculture, especially for human skills, research and technology.
He said the investments were essential for African countries to encourage innovative development and use of improved seeds.
“It will encourage them (African countries) to use fertilisers and hybrid crops.
“It will also encourage them to use those inputs to improve resilience of the sector through the provision of private credit and insurance schemes for agricultural production, processing and marketing.’’
He also urged the governments to improve rural infrastructure and marketing that would be critical for agro-allied industrialisation.
Hamdok said without sustainable and accessible rural infrastructure, real productivity and transformation in the sector would not be possible.
According to him, infrastructure includes increased road densities in rural areas and increased use of ICT.
“It also includes adequate energy supply with preferential treatment for farmers and agro-industries; and improved port handling facilities with simplified and efficient customs clearance procedures,’’ he said.
In his presentation on globalisation, Prof. Eric Maskin of Harvard University and 2007 Nobel Laureate in Economics said the concept had come with many effects and difficulties.
According to him, globalisation is the process by which businesses or other organisations develop international influence or start operating on an international scale.
Maskin said that developing countries such as China, India and a lot of Africa countries had seen increase in their Gross Domestic Product (GDP) as a result of globalisation.
He said that it had also brought difficulties as some countries had also experienced inequality in trade and investment.
The economist, however, attributed the cause of inequality to theory of comparative advantage in economics.
Maskin, however, urged African governments to invest in skill training to boost agriculture to fill the existing gap in the sector.
He said that government should provide subsidy to the farmers, “there is no priority that any government can give than in human capital’’.
“Skill development should be top priority for the government to reap the benefits of globalisation,’’ the professor said.
The News Agency of Nigeria (NAN) reports that Nigerian Vice President Yemi Osinbajo declared the 3-day conference opened.
The theme of the conference is “Feeding Africa: Towards Agro-Allied Industralisation for Inclusive Growth’’. (NAN)
CIA/EAL/MO
Edited by Ekemini Ladejobi/Morayo Omolade
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