Hunger and Poverty – A way out through inclusive value chain development

1. Hunger and Poverty – A way out through inclusive value chain development Farouk Gumel, Nigeria

2. Farouk Gumel- In September 2015, the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs).The first two goals were "No poverty and Zero Hunger". These Are problems common to all nations although its severity differs in each nation and region. FAO data shows Africa as the region most impacted by hunger and malnutrition.

3. Apart from the obvious fact that we all need food to live, hunger and malnutrition also have other adverse and long-term socioeconomic consequences such as poor health, under education and insecurity. It is a fact that Chronic undernutrition hinders the growth and wellbeing of children under five years old. As these children grow, they will continue to have health and/or learning difficulties.

4. In 2018, 49.5 million children under five were affected by acute malnutrition. It is reported that Africa and Asia accounted for nine out of ten of these cases. These Affected children are excessively thin and short for their age. This means although regions like Africa may have the highest population growth rate in the world, many people from the continent may not live up to their full potential – both physically and intellectually.Therefore addressing poverty and hunger are vital in building a productive, prosperous and progressive society.

5. The question is how can one achieve this ambitious goal? In Africa, many approaches are being applied. Somesee poverty and hunger eradication as simply donating and distributing food and medicines. Others Focus on providing grants in cash or kind. We also have some who focus on education and skill development. So far, these various approaches have resulted in “pockets” of success. But with a 2.5% population growth rate and over 40% of the population living below the poverty line, the “pocket” approach to success may not necessarily be impactful.

6. Although the data presented above is disturbing, it is not too late to stop and even reverse this trend. We can, with the right focus, bring massive employment into Africa. With such employment, we can bring prosperity to millions. With such prosperity, families will be fed and children will get educated. With an educated and well-nourished society, peace will surely reign.

7. The quickest way to create massive employment is through agriculture. This, by the way, is also how the continent can eliminate hunger and malnutrition. Many say this is easier said than done. But the reality is, no one ever said it would be easy to uplift and transform over 500 million people from poverty to prosperity. This is an “evolutionary” journey.The concept of an overnight agricultural “revolution” will not achieve, at least in a sustainable manner, the goals of poverty and hunger eradication. In this “evolution”, both leaders and citizens must align in their thinking and set realistic and achievable goals that are inclusive.

8. Most of the “revolutionary” programs introduced to (or imposed onto) Africans arenot sustained or sustainable. This is simply because in many instances, they are not inclusive or, the design failed to consider many cultural or socioeconomic factors. So an inclusive and consultative approach, with a long term view, is the only way to address the problem of hunger and poverty.

9. Already, many companies in Africa such as Dangote, Olam, OCP and TGI Group are aggressively investing in an Inclusive Value Chain Development approach for sustainable and inclusive growth. Farouk Gumel, a Group Executive Director for Tropical General Investment (TGI) Group, said his company has invested millions of dollars in out grower farming programs for rice paddy, soya beans and maize in Nigeria. He said “these programs supply raw materials to TGI’s rice mill, multi seed oil crushing facilities and poultry farms.” Farouk Gumel states that through these ventures, TGI's outgrower farmers get quality data and inputs during the land clearing and planting period as well as support during harvesting. TGI also gives guaranteed offtake agreement to the farmers. These offtake agreements enable the farmers to borrow funds for the enhancement and expansion of their operations. According to Farouk Gumel, farmer incomes have gradually been increasing enabling them to provide better quality education and health care to their families. If similar programs continue to be introduced and expanded, the goal of eradicating poverty and hunger is surely achievable.

10. THANK YOU!!