Browsing: Africa Digital Financial Inclusion Facility

Africa dependency for supply of crucial needs like food must be changed through diversification of sources and investing in its own regional specialization for production of goods and services. Photo/UNCTAD

As countries and entire regions react to the global pandemic by seeking to strengthen their resilience, they will, on one hand, cut dependence on sourcing  or at least diversify their sources and on the other hand, improve their own responsiveness to demand.

That is where agriculture technology comes in, because what is bound to happen is shorter supply chains will emerge and Africa food security will be undermined.

The continent, while prioritizing transport infrastructure will do well by investing in human resource development and agriculture technology to diversify Africa food sources and Africa food security. The future is in automation, so if a country has the needed human resource it can invest in developing value chains tended by a more technical labour working its agriculture technology.

To build Africa food security, the huge population of Africa youth can offer great competition to the rest of the world if it is educated to meet the global technical needs as ever more intangibles hubs form.

According to the World Bank, the annual SME credit gap in Sub Saharan Africa is about US$330 million. MSMEs are often neglected by lenders due to a combination of factors.

These include the high cost of customer acquisition and due diligence, insufficient data availability for accurate credit assessments, lack of collaterals, uncertain customer lifetime values, and the high costs of distribution and servicing. There is a large opportunity for lenders who are able to overcome these challenges.