Paper short abstract:

Drawing on emerging research insights from a comparative study of South Africa and Tanzania, the paper explores domestic political economy factors shaping patterns of inclusion and exclusion in processes of industrial change in the agro-processing sector.

Paper long abstract:

Accelerating urbanization, changing consumption habits and income growth are frequently presented as driving a 'quiet revolution' in agro-processing across Africa (Reardon, 2015). In this context, agro-processing has been increasingly targeted by government and multilateral development agency industrial policy initiatives due to the anticipated advantages of the sector for envisaged processes of inclusive industrialisation. Specifically, the sector is seen to offer particular opportunities for incorporation of small and medium size food manufacturing enterprises and small scale agricultural producers in formal sector value chains, with attendant benefits for upgrading industrial capabilities and reducing poverty. However, too little is known about the mediating factors which determine the prospects for inclusive growth in agro-processing, and what distinguishes 'inclusion' from forms of 'adverse incorporation' which are more likely to compel downgrading (Hickey & Du Toit, 2007; Ponte & Ewert, 2009). Much literature around similar themes has tended to focus on the incorporation of African agribusiness into global value chains, and the role of international standards and inter-firm power imbalances. This paper instead focuses on domestic political economy factors, exploring the manner in which differing institutional configurations, distributions of income and power, and shifting relationships between large firms and the wider 'peripheries' (Greenberg, 2017) of the modern food system, shape processes of industrial change in agro-processing. It does so drawing on emerging insights from a comparative study of agro-processing in South Africa and Tanzania.

Paper short abstract:

The paper theorises the relevance of a Systems of Provision (SoP) approach to understand African food systems in the global political economy.

Paper long abstract:

The 2007/8 global financial crisis has once again exposed the vulnerability of African food systems and farming systems to the shocks on world food markets. In West Africa, where the provision of major staples is dependent on imports, food riots have exposed the depth of the agrarian crisis (Bush and Martiniello 2016). In East Africa, where major food staples are produced domestically, but price is affected by world food markets, change of policies and restructuring of sectors have ensued the global crisis, with the Eastern African Community (EAC) driving regional bans on food imports and exports. The impact of financialisation on African food system and the farming systems that sustain them require to adopt a more comprehensive and 'big picture' theoretical approach than what proposed, for example, by Global Value Chain analysis (GVC) and Global Networks of Production (GNP) analysis. While GVC and GNP tend to focus on one chain/one commodity, as System of Provision (SoP) approach (Fine and Leopold 1993; Fine et al. 2016) is broader in scope in four major ways. First, SoP can be applied to whole sectors, for example to examine grains as a bundle of commodities; second, it can account for broader Structures, Processes, Agents and Relations (SPAR), consistently with the methods of historical materialism; thirdly,it connects production to consumption by looking at how these co-constitute each other; lastly, it is a multi-scalar analysis. The paper argues that a SoP approach can disentangle the conundrums of African food security and food sovereignty.

Paper short abstract:

This paper provides a critical analysis of the current Ghanaian Coordinated Programme Of Economic And Social Development Policies that looks at structural dimensions of the agricultural sector within global commodity chains.

Paper long abstract:

In 2017 the Ghanaian government launched the Coordinated Programme Of Economic and Social Development Policies (2017-2024). A "Planting for Food and Jobs" (PFJ) component targets agriculture as a "driving force for rural development and transformation" to support agro-industrial enterprises in the promotion of a "One District, One Factory initiative". Government promotes this as a "complete paradigm shift in agricultural development from a supply driven-approach, to a more strategic, business centred and demand-driven approach." An underlying rational of the programme is an assertion that Ghana needs increased productivity through higher yields, to be achieved through subsidization and financing of fertilizer, hybrid seed and contracts and guaranteed markets. The program has been criticized for neglecting consultation, maladministration in its initial year, its limited scope and range of crops, as well as the perceived limited viability of private sector investment. The Peasant Farmers' Association of Ghana argues the country does not suffer challenges in yield, but in post-harvest losses (up to 60% for some crops), competition with imports and coinciding dietary changes. This paper provides a critical analysis of the policy framework that looks at structural dimensions of the agricultural sector within global commodity chains. I explore the feasibility of using a "Systems of Provisions" methodology, to understand variable and overlapping structures, agents, processes and relations that play out in the broader political economy of food. The paper benefits from semi-structured interviews with key figures in policy implementation, researchers, industry and participatory observation at various farmer organized seminars and workshops since 2017.

Paper short abstract:

This paper analyses changes in selected agro-processing regional value chains focusing on three SADC countries, South Africa, Tanzania and Zambia. Drawing on recent in-depth research it analyses market outcomes, governance and industrial policies, and considers the implications of climate change.

Paper long abstract:

Urbanisation, rising incomes and supermarketisation are changing patterns of consumption towards greater demand for processed foods. While there are indications of an economic transformation in Africa with shifts to higher value crops and agro-processing, most African countries remain net food importers. Without a dramatic increase in agro-processing, higher demand for food products will mean a continued and growing food deficit, despite potential for increased agricultural production. At the same time, climate change introduces new levels of uncertainty about sustainable crop production.

This paper evaluates changing patterns of production, trade and the governance of selected agro-processing value chains across three SADC countries, South Africa, Tanzania and Zambia, drawing on recent research in which the authors have been involved. While regional integration in the form of liberalising trade has been strongly promoted, the paper assesses the mixed picture in terms of divergent prices across countries and the continued relatively low levels of regional trade. The analysis points to the importance of understanding power on the part of local and international market participants, and the different policy approaches adopted in the three focus countries.

The variability associated with climate change makes it imperative to consider how investments in food systems should be made across the region to organise production in ways that anticipate changes and makes the most sustainable use of endowments and capabilities across national borders. A broader view of agro-industrialisation is required to sustain investments and to regulate power in the production systems to ensure wider participation, along with upgrading.