Africa’s $70bn Food Import Bill Sparks Urgent Call for Investment in Local Farming

Africa’s rising food import bill, now estimated at around $70 billion annually, is unsustainable and signals an urgent need to invest in local agriculture, smallholder farmers, and climate-smart food systems, regional leaders and agricultural stakeholders have warned.

They were speaking on September 30, at the Eastern Africa Farmers Federation (EAFF) Congress being held in Kigali, from September 30 to October 2.

Marking 20 years of EAFF’s operations, the congress brought together actors in the agriculture sector, including government officials, development partners, researchers, and farmers from across the region under the theme: “Towards More Sustainable Food and Farming Systems.”

Opening the event, Rwanda’s Minister of Agriculture and Animal Resources, Mark Cyubahiro Bagabe, said the continent must confront its food and farming realities head-on.

“We are meeting under the theme towards more sustainable food and farming systems at a time when we’re experiencing climate shocks, high trade costs and actually trade deficits,” he said, citing Africa’s food import bill, which is a “staggering” $70 billion a year.

This, he said, is happening when the continent also faces unemployment, especially among youth, which may be one of the causes of social unrest.

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Underinvestment at the heart of the crisis

Elizabeth Nsimadala, President of the Eastern Africa Farmers Federation, warned that Africa’s ballooning food imports threaten its food sovereignty.

This, she said, reflects decades of underinvestment in agriculture.

“As a continent, we are seated on a time bomb. Currently, our import bill is around $70 billion [per year],” she said.

“It’s really a wake-up call for all the ecosystem actors in agriculture to invest in agri-food systems.”

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Nsimadala indicated that lack of investments in the agriculture sector is the biggest factor for the increasing food import bill.

“Twenty years now since the Maputo Declaration, countries committed to allocate 10 per cent of their national budgets to the agriculture sector. But none of the African countries has actually allocated 10 per cent,” she stated.

“We have a few countries like Rwanda that are really trying, but many of the African countries are around 3 per cent. So, we really need to see how we prioritise investments in the agriculture sector if we are to reduce this import bill.”

She also flagged limited access to affordable financing as a major bottleneck.

Despite agriculture’s importance to the continent’s economies, Nsimadala expressed concern that bank loans to agriculture average just 5 per cent of total lending, while interest rates often exceed 24 per cent, even among Savings and Credit Cooperatives (SACCOs) – which are closer to farmers and are supposed to support them relatively better.

She pointed to the need for more agricultural banks and development financing that understand the needs of smallholder farmers.

Also, she said, climate adaptation funding reaching smallholder farmers is less than 1 per cent, which hinders their resilience to climate change.

Despite challenges, EAFF helped secure over $4.5 million in loans for farmers – from commercial banks and SACCOs – and facilitated $6 million worth of commodity sales across eight countries through farmer organisations.

Boaz Keizire, Director of Policy at AGRA, underscored Nsimadalas’ earlier message at Africa Food Systems Forum, where she challenged African leaders and global partners on investing the $70 billion – spent on importing food into the continent – in its farmers to produce the food instead.

He said it has continued “to catch fire” across the continent and globally.

“Let us build food systems that are not only sustainable, but sovereign. Let us ensure that the future of farming in Africa is shaped by those who know and trust the farmers,” Keizire observed.

Closing productivity gaps, building resilience

Minister Bagabe pointed out that boosting productivity -particularly among smallholder farmers – holds the key to reducing Africa’s dependency on imported food.

In Rwanda, average maize yields are about two tonnes per hectare, yet some farmers produce up to ten tonnes. This reflects disparities in production among smallholder farmers who lack adequate farm inputs, and large-scale farmers. Cassava yields can go up to 50 tonnes per hectare, while the national average is much lower – three times less.

This is the gap that must be closed, he said.

He called for practical action to raise productivity by investing in climate-smart agriculture, research on resilient crops and livestock, and extending digital advisory services to farmers.

Talking about key priorities for a sustainable food system, Bagabe outlined some pillars critical to transforming agriculture in the region.

They include climate adaptation and early warning systems, youth and women inclusion in agri-business, agritech and innovation to modernise farming, easy access to finance, including blended finance for low-cost funding to agriculture, and scaled-up agri-insurance to cushion farmers from losses in case of uncontrollable circumstances.

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