Can IFAD’s “First Mile” revolution secure Africa’s food future?

Agriculture and Trade in Sub-Saharan Africa

Sub-Saharan Africa, despite its rapid growth, faces significant economic losses due to inefficiencies in food systems and trade. Approximately 37 percent of the food produced in the region is lost before reaching the market, resulting in an estimated 92 billion dollars in annual losses. Concurrently, regional air travel costs remain high, despite reform commitments, and major commodity producers are striving to increase the value of their exports.

IFAD Initiatives to Mitigate Food Losses

The International Fund for Agricultural Development (IFAD) is targeting inefficiencies in agriculture by focusing on the supply chain's "first mile," which is the crucial phase connecting smallholder farmers to formal markets. IFAD Vice-President Gerardine Mukeshimana noted that investments are being aligned with the Comprehensive Africa Agriculture Development Programme (CAADP) Kampala priorities to transition subsistence farming into viable agribusinesses.

The strategy involves enhancing rural infrastructure, reinforcing farmer cooperatives, expanding financial access, and de-risking agricultural investments to attract private capital. Initial outcomes indicate that blended finance models and public-private partnerships are successfully drawing private investors to traditionally risky areas. These projects aim to reduce post-harvest losses, improve storage, and strengthen logistics, thereby increasing farmer incomes and developing sustainable value chains.

Potential of Rural Entrepreneurship for Youth Employment

With Africa's youth demographic expanding rapidly, there is an urgent need for sustainable employment opportunities. IFAD suggests that rural entrepreneurship, especially in agro-processing, logistics, and digital services, holds considerable potential for job creation. Programs focus on skills development, credit access, and integrating young entrepreneurs into structured value chains.

Evidence from IFAD-supported projects shows that youth-led agribusinesses are generating income beyond subsistence levels, particularly where infrastructure and market access are concurrently enhanced. However, scaling these models continent-wide remains challenging due to fiscal limitations and decreasing external development support. The organization's 14th replenishment aims to sustain investment momentum by providing concessional financing and leveraging additional private capital, crucial amid increasing debt servicing costs in many African nations.

ECOWAS Aviation Reforms and Flight Costs

In West Africa, the Economic Community of West African States (ECOWAS) has committed to reducing regional airfares following the announcement of significant aviation tax cuts in December, with implementation slated for January 2026. These reforms aim to address the high regional flight costs that have impeded trade, tourism, and business mobility across the bloc.

However, nearly two months into the new year, passengers have reported minimal changes in ticket prices. Analysts attribute the delay in realizing fare reductions to slow regulatory harmonization, airline cost structures, and currency volatility. While political commitment has been expressed, operational execution, including coordination among aviation authorities and carriers, remains inconsistent. The focus now is on whether ECOWAS can effectively translate policy announcements into tangible cost reductions that enhance regional connectivity.

Ghana is actively pursuing strategies to capture more value from its cocoa industry, traditionally reliant on raw bean exports. The government aims to process up to half of its cocoa domestically, a strategy designed to enhance export revenues, bolster local manufacturing, and improve farmer incomes.

Despite Africa producing the majority of the world's cocoa beans, much of the value addition in chocolate production occurs outside the continent. By increasing domestic processing capacity, Ghana seeks to augment foreign exchange earnings and create industrial jobs. This initiative aligns with a broader continental focus on value addition and industrialization, reducing reliance on raw commodity exports.

Based on reporting by Africanews.