By Carolyn Hemminger
25 June 2009 [MEDIAGLOBAL]: According to a joint study by the United Nations Food and Agriculture Organization (FAO) and the World Bank, a substantial mass of African savannah has the potential to be used as commercial agricultural farmland.
If such endeavors were successful, it could potentially increase the economic development of multiple African nations by introducing them into the bulk commodities market.
The issue of economic stability and development was one of the major concerns at the Conference on the World Financial and Economic Crisis and its Impact on Development that took place this week at the United Nations. Experts are especially concerned about the crisis’ regional impacts, particularly in Africa.
At the beginning of the crisis, it was thought that Africa would not be severely affected because the continent’s economies are not greatly integrated into the global market. However, time has show that African countries are feeling the impact of the crisis within their borders.
According to a recent report launched by the five UN Regional Commissions, African economies are predicted to have a reduction in growth of between two and four percent in 2009. This is a complete turnaround from previous years, where growth averaged about five percent each year.
The economic crisis is also predicted to put three million more Africans out of work, an increase of 0.6 percent.
African countries are in desperate need of stabilizing and recovering their already-weak economies. An increase in agriculture, a major commodity to many African economies, would be a possible solution for allowing economic growth in this region.
As indicated by the FAO/World Bank study, “Africa is better placed today to achieve rapid development in agriculture,” compared to similar initiatives implemented in Thailand and Brazil.
“Many countries in sub-Saharan Africa continue to have agrarian economies, meaning that agriculture makes up an important part of overall GDP [Gross Domestic Product] and employs a large number of people,” Michael Morris, Lead Agricultural Economist from the World Bank, told MediaGlobal.
“Governments in most of these countries want to convert what is often still subsistence-oriented agriculture into commercial agriculture, which is needed to improve the incomes of rural populations who have few alternative livelihood sources,” Bank said. “To the extent that these countries have under-utilized Guinea Savannah land, they will naturally be interested in using this land for agriculture.”
According to FAO, only 10 percent of the Guinea Savannah zone, which spans 600 million hectares from Senegal to South Africa, is actually cropped. In this area, over 400 million hectares are suitable for farming.
The area extends over 25 African countries, leaving room for potential markets throughout the continent.
According to the World Bank, smallholder-led initiatives would be the best option for Africa because, in previous studies, when smallholder farmers are involved in development, it tends to lead to greater poverty reduction and local demand is better stimulated.
However, there could still be challenges in these land regions. In some cases, this would include abundant but unreliable rainfall patterns, inconsistent soil concentrations, and high population density. In other cases, this would include drought, soil prone to acidity and toxicity, and too-low population density.
However, if the appropriate mechanisms were put into place to handle these difficulties, it would make Africa ripe for entrance in the bulk commodities market. Bulk crops have the potential to be major exports, as well as being a basis for food provision to impoverished families and communities within African countries.
The best way to ensure economic development for the entire continent is for African countries to work together to improve this market.
At a panel on this issue, it was concluded that “deeper regional integration is crucial for building stronger and more resilient African economies, particularly in light of the current global financial crisis,” according to a UN press release.
Coordination is going to be especially important when it comes to utilizing this land, while simultaneously protecting the valuable ecosystems within it.
FAO and the World Bank support this potential economic growth in Africa, but at the same time, they do not recommend using parts of the Guinea Savannah if it will significantly damage the local plant and animal life.
“To avoid endangering ecologically important species, governments need to introduce policies to ensure that before any development takes place, rigorous environmental impact assessments are carried out to identify potential problems,” said Morris, “If properly designed and implemented, such policies can allow the expansion of agriculture to be managed in ways that minimize damage to valuable ecosystems.”
If Africa is going to take advantage of the Guinea Savannah’s possibilities, these countries are going to need the financial support of the global community because many African countries do not currently have the capacity for such a costly endeavor.
Many international organizations, including FAO and the World Bank, are already making an effort to fund the utilization of the Guinea Savannah for agriculture.
“Currently, the World Bank is supporting agricultural development projects in nearly all of the African countries that fall into the Guinea Savannah zone. These projects are supporting many activities that are designed to facilitate the emergence of competitive commercial agriculture: strengthening agricultural research systems; supporting agricultural extension services; investing in infrastructure for irrigation and rural roads that can link farmers to markets; distributing farming inputs; strengthening rural finance systems; promoting the generation and distribution of market information; helping African firms export agricultural commodities into overseas markets; et cetera,” said Morris.
While Africa is only beginning to establish possible recovery for the crisis, if they play their cards right and utilize some of the available land on the Guinea Savannah, they have the potential to achieve significant economic development.