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In an interview with Capital’s Groum Abate in Rwanda, Bayer’s Head of Global Public Affairs, Max Müller, argued that Africa’s development challenges are too often shaped by outside assumptions, rigid models and underestimation of local realities. He said the continent’s agricultural promise is not a distant possibility but a present reality, driven by farmers, technology and growing innovation across the sector. Excerpts;

Capital: Could we start with the concept of “Western arrogance” that you mentioned earlier? What do you mean by that, and how has it manifested itself in economic development in Africa?

Max Muller: What I have observed in the field across the African continent — and this is not unique to Africa — is that for far too long, we in Europe have had good intentions, but we often approached economic development in a way that said, “We will help you, but only if you do it our way.” I do not think that works. It is not a recipe for success.

Africa is not one single entity. There is no one Africa. What works in Kenya may not work in Côte d’Ivoire. What works in South Africa may not work in Morocco or South Sudan.

Recognizing the diversity of the continent, and the diversity of possible solutions, is very important. What I also meant is that it was not always fair for people in the West to tell Africans what is good for Africa and what is not. People here know their countries better than we do. They know what works best for them. In some areas, they may need advice or training, but not someone telling them, “This is how you do it, or we will not support you.” That is what I meant by Western arrogance.

Capital: You also said that Africa has potential. How do you describe that?

Max: I would go even further. It is not only about potential, because potential always suggests that something may happen in the future. The future is already here. We see areas of excellence across the continent and across different crop varieties.

Look at chocolate, for example. We like to eat chocolate in the West, especially in Germany. But the prices depend on whether the harvest in West Africa is productive or not. So it is in our own interest that there are good harvests and effective ways forward that help the farmer. Right now, we are seeing raw products coming out of Africa, but not enough processing. So this is not just about potential, because production is already happening. It is about opportunities.

How do we scale up so that the continent becomes self-sufficient and gains access to innovation and high technology? From our point of view, that is very important. I think this goes beyond potential. It is about making the best of what is already possible, and we see those examples every day.

If you use our hybrid seeds, for example, we increase harvests by more than 18 percent on average. Is that potential, or is that a result? It is a result. We can see what farmers are capable of doing if they are given the right tools. So this is not only about potential — it is already happening. That is why we strongly believe in the African continent, and that anyone who is not here now will miss the next great success story: the development of this continent.

Capital: A common criticism is that Bayer’s agricultural products are highly advanced but often too expensive for the average African farmer. How do you plan to address that affordability barrier?

Max: “Expensive” depends on how you look at it. If you have a cheaper seed that is less productive and gives you a lower harvest, is that really the better result?

Farmers in Africa are seeing that if they have a quality input, quality fertilizer or a quality crop-protection tool, the outcome will be better. Their harvest losses will be lower, and therefore the investment they make becomes more productive. So it is not only about the price, but about the value proposition.

We are also seeing that lenders, such as banks and other financial institutions, have more confidence in farmers when they know the money they lend has a higher chance of being repaid through the use of high-quality inputs. That increases the likelihood of good results from the fields, through hard work, and gives farmers the ability to repay any financial support they receive.

So I would say it is not about us being expensive; rather, it is about proving consistently that we deliver the best possible outcomes so farmers can become profitable in the strongest way possible.

Capital: Do you have specific structures in place to help smallholders bridge this financial gap?

Max: Absolutely. It is not only about us. You also have the World Bank and other financial institutions, but there are also opportunities from startups. You mentioned Pula as one of the startups bringing together downstream and upstream parts of the value chain.

Smallholder farmers face challenges in accessing financial support — we know that. But banks and financial institutions also worry about whether they will get their money back. Through technology tools and platforms, whether provided by IFIs or private startups and agri-facilitators, we are now seeing greater trust from banks and lenders. They can see that if a farmer has three acres of land and chooses a particular crop because the soil is a perfect fit, and uses inputs A, B and C from a specific source, success is more likely.

That allows us to connect financial markets, banks, lenders and fertilizer producers with smallholder farmers through digital tools, such as smartphones, and still make the system work. The financial market also understands that farmers need a seven-month window, from the investment stage through post-harvest, before they can actually sell their products and begin repaying support.

So I would say the tools are there and they are growing. And interestingly enough, you had colleagues from Ethiopia on stage. There are many agri-tech companies emerging there, and you have banks like Equity Bank that are willing and able to support this development. I am very confident that this is creating more opportunities for smallholder and emerging farmers across the African continent.

Capital: Let us address a critical local bottleneck. Bayer’s office in Ethiopia faces significant hurdles in securing foreign exchange to import vital agricultural inputs. How are you navigating this problem?

Max: I was in Ethiopia in February. I understand that this is a major problem, but I also see that there is a lot of activity on the policy side to tackle these challenges. Do we have the perfect solution yet? Not yet. But we have seen some progress, including the involvement of German banks and others.

I think we are moving more and more in that direction. The forex issue is not unique to Ethiopia. We have seen it in other countries as well. We are working with banks, policymakers and international financial institutions on how to overcome it, but also on improving predictability in the political framework. The stability we are now seeing gives more trust and more reason to say, “Let’s give this another try.”

You came out of a financial crisis, you are repaying your debts and you have a path toward recovery. I have strong confidence that Ethiopia is going to be very productive in this market quite soon. We are trying, together with partners, to create the right solutions for the Ethiopian market in the short term. From what I took away from the trip, we will have good solutions available very, very soon.

Capital: What are the major problems of operating in Africa?

Max: In the past, the lack of success was partly because large commercial farmers produced good results, while many people did not focus on the smallholder problem, since it is more complex. But due to the technical and digital revolution, it is now easier and more feasible to expand access.

Bayer has a mission: health for all, hunger for none. Without smallholder farmers, it is impossible for that mission to succeed. So we have adapted the way we look at these issues. We have seen that smaller successes create bigger ones.

The site we built in Zambia is just one example. If we believe in the work of farmers, if they believe in science, technology and quality inputs, the results will prove the case. Then, instead of being recipients of aid, people become entrepreneurs who can sell the products of their own labor. I think this thinking has become more valid in Africa, with greater belief in its own strengths rather than dependence on others.

People are standing up and saying, “We are fighting for ourselves, and we are doing this in a proper way.” That change in attitude and perception also gives businesses the willingness to invest more, and perhaps even take a little more risk, because they see people on the other side who are willing and able to do something good for this continent.

That is why we at Bayer strongly believe the best days for Africa are ahead. But they are not in some distant future — the future is beginning now.

Capital: So your seeds are sustainable?

Max: Yes. I believe Africa has not only the ability to do this in a short period of time, but that we will get there. Food security is such an important issue, and seeing people starving in a continent that has arable land and the labor to work it is something we will never accept.

So we are trying to do whatever we can, for example through a program to give 100 million smallholder farmers around the world access to innovative inputs. That is part of Bayer’s sustainability commitment, and we are working toward it.

As I mentioned, by 2030 we want 21.3 million smallholder farmers here on this continent to be able to do that, and we are on a good trajectory. Again, it is not about being recipients of donations; it is about building entrepreneurial farming across the continent. The progress we are seeing is immense.

You can see the pride when people realize what they can produce from their soil with a little initial support at a pivotal moment in their lives. Then they are willing to take their lives into their own hands and create something. That is what makes Africa so strong: the willingness of the people is so powerful.

South Africa’s xenophobia crisis is a threat to Africa

Editorial

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June 20, 2026

South Africa’s xenophobia crisis is a threat to Africa

South Africa’s recurring attacks on foreign nationals are no longer just a domestic embarrassment; they are a continental wound. Each new wave of violence deepens mistrust across Africa, damages South Africa’s standing as a regional power and leaves many Africans feeling hurt, angry and betrayed.

For years, South Africa has benefited from Africa’s solidarity, labour, trade and political support. Migrants from across the continent have helped build businesses, filled labour gaps and strengthened informal economies in South African cities and townships. So when they are attacked, chased away from clinics, harassed in markets or targeted by vigilantes, the pain is felt far beyond South Africa’s borders.

That is why many Africans are distancing themselves from the violence. They are not rejecting South Africans as people; they are rejecting the idea that a country born from the struggle against oppression can repeatedly turn its anger on other Africans. The contrast is painful. A nation that once inspired the continent is now too often associated with exclusion, abuse and silence.

The most troubling part is the state’s response. South Africa’s government often speaks the language of sovereignty, law and order, but too often allows anti-immigrant gangs and vigilante groups to set the tone on the ground. That is not governance. It is complicity by neglect.

When public officials meet these groups, allow them access to national platforms or fail to enforce court orders against unlawful conduct, they help legitimise them. That gives vigilantes the confidence to continue. It also tells victims that the state is hesitant to defend them. In that vacuum, violence becomes a political tool.

The crisis is not simply about border control or undocumented migration. It is about power, accountability and the rule of law. Xenophobia thrives when leaders find it useful, when local actors profit from exclusion and when police enforcement is selective. In South Africa, migrants are often used as scapegoats for unemployment, crime and service failures that are far more complex than hostile slogans suggest.

This is why the violence keeps returning. It is not random. It is organised, repeated and politically profitable. Some groups gain votes, some gain influence, others gain access to resources and protection. Meanwhile, ordinary migrants lose livelihoods, dignity and sometimes their lives.

For the rest of Africa, the lesson is sobering. Continental unity cannot survive if African states tolerate attacks on Africans inside their own borders. The promises of integration, free movement and shared prosperity lose credibility when people are assaulted for looking foreign. Trade and diplomacy also suffer, because trust is the hidden currency of regional cooperation.

South Africa must do more than condemn xenophobia in speeches. It needs to prosecute perpetrators, dismantle the networks that organise exclusion and ensure that police protect everyone, not only citizens. It must stop rewarding groups that traffic in hate and enforce the law consistently, even when politically inconvenient.

It must also confront the deeper social problem: the willingness of some politicians and activists to turn desperation into hostility. That requires leadership, not slogans. It requires the state to defend constitutional democracy against those who want to replace it with mob justice.

Africans across the continent are watching closely. They are hurt because they know South Africa’s violence is not only against migrants; it is against the idea of Africa itself. If the country wants to remain a respected regional power, it must prove that its laws are stronger than its mobs and that its democracy can still protect the vulnerable.

Without that, the crisis will keep spreading, and the damage will not stop at South Africa’s borders.

World Energy report says Africa’s transition is gaining ground but still faces major strains

Capital News

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June 20, 2026

World Energy report says Africa’s transition is gaining ground but still faces major strains

The global energy transition has lost momentum, and Africa is improving from a low base while still facing major structural constraints, according to the World Economic Forum’s Energy Transition Index 2026. The report says Sub-Saharan Africa is making progress in access, affordability and readiness, but the region remains held back by underinvestment, weak infrastructure and uneven policy support.

The index shows that global transition progress has stalled, with the overall score broadly unchanged in 2026 after a modest rebound the previous year. While energy system performance improved slightly, transition readiness fell for the first time in more than a decade, reflecting weakening conditions for future investment and implementation.

For Sub-Saharan Africa, the report says the region continues to build momentum from a low starting point, especially in electrification and policy progress. But it also warns that the transition remains uneven and vulnerable to financing gaps, access challenges and weak infrastructure.

The report places strong emphasis on the importance of readiness — the policy, financial, human capital and infrastructure conditions needed to sustain energy transformation. It says weaker financing conditions and policy uncertainty are making it harder to turn ambition into delivery, even as clean energy investment reaches record levels globally.

Africa’s performance is viewed in the context of a wider global shift toward energy security. The report says geopolitical shocks, supply chain concentration and rising electricity demand are reshaping energy strategies worldwide, with countries now focusing more on resilience, affordability and domestic capability.

At the regional level, the report says Sub-Saharan Africa has benefited from gradual improvements in regulation and energy access, but the pace is still too slow to close gaps by 2030. It also notes that the region’s energy transition is being shaped by its strong sustainability profile and its need to expand access for millions still outside the grid.

The index highlights that Africa’s challenge is not only one of generation capacity, but also of financing, grid development and the ability to support industrial growth. It says countries that strengthen institutions, mobilize capital and improve delivery systems will be best positioned to advance their energy transitions.

The report’s broader message is that the next phase of the transition will be determined less by technology alone and more by governance, investment and execution. For Africa, that means turning progress in access and affordability into a more stable and resilient energy future.

Africa’s cash dependency is choking growth, report warns

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June 20, 2026

Africa’s cash dependency is choking growth, report warns

A new Africa-focused report says the continent’s heavy reliance on cash is holding back financial inclusion, small business growth and government revenue, even though Africa has already built some of the world’s most advanced digital payment infrastructure. The report argues that the problem is not technology itself, but the incentives and institutions that still make cash the most practical choice for millions of people.

The report, The State of Cash Dependency and Digital Financial Inclusion in Africa, says Africa’s digital rails have expanded far beyond bank branches, yet cash remains the default for buying food, paying rent, settling debts and running informal businesses. It says this gap is most visible among street vendors, migrant workers and small traders, for whom cash is still cheaper, faster and more reliable than digital alternatives.

According to the report, over 90 percent of mobile money value is still withdrawn as cash at the point of receipt rather than staying in the digital system. It says this “cash-in/cash-out” pattern limits the usefulness of digital finance because people may receive money digitally but still revert to cash for daily transactions.

The report also says cash dependency has serious economic consequences. When transactions do not leave a digital record, lenders cannot properly assess creditworthiness, which makes it harder for small and medium-sized enterprises to access finance. It adds that governments lose visibility over large parts of the economy, weakening tax collection and limiting the resources available for public services.

One of the report’s central findings is that Africa’s financial challenge is not lack of access alone, but the failure of digital systems to outperform cash at the level of everyday decisions. It says many merchants still prefer cash because accepting digital payments can involve fees, while consumers keep cash because merchants often require it. The result, the report says, is a self-reinforcing cycle that keeps cash dominant.

The study identifies several barriers to change, including fragmented regulation across African countries, weak interoperability, identity and documentation gaps, unreliable agent liquidity and low trust in digital finance. It says these problems are not evenly distributed, and that policy responses must differ from one country to another depending on how advanced its payment systems already are.

The report calls for three major shifts: making digital payments cheaper than cash for merchants, mandating real-time interoperability across providers, and building stronger financial products such as credit, savings and insurance on top of payment rails. It also urges governments to digitize public payments, modernize digital identity systems and support the regulatory environment needed for broader adoption.

The report groups African markets into three broad categories: catalytic markets such as Kenya, Nigeria, Ghana and South Africa; tipping-point markets including Ethiopia, Tanzania, Uganda, Rwanda and the Democratic Republic of Congo; and nascent markets where basic connectivity, identity systems and institutional trust remain the main constraints.

Its broader conclusion is that Africa does not need to start from scratch. The infrastructure, innovation and entrepreneurial capacity already exist, but stronger governance, better incentives and coordinated policy are needed to make digital finance the norm rather than the exception.