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Preventing the Next African Famine

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After years of steady decline, the pace of global hunger is creeping up, and parts of Africa today are in the midst of the worst food crisis since World War II. Averting future famines on the continent is possible, but only if regional and global donors make the development of smallholder farming a high priority.
After falling for more than a decade, the number of hungry people in the world is rising once again. This year was marked by the worst global food crisis since World War II, with South Sudan, Yemen, Somalia, and Nigeria either experiencing famine or teetering on the brink. More than 20 million people in those four countries alone remain severely food-insecure, and the United Nations estimates that $1.8 billion in immediate humanitarian aid is needed.
Political instability and conflict have contributed heavily to this food insecurity, but insufficient food production has also likely heightened tensions and exacerbated hunger. In Sub-Saharan Africa, where three of the four countries on the verge of famine are located, crop yields have long lagged behind the rest of the world, owing to poor farm inputs, such as low-quality seeds and fertilizer.
Investing in agriculture is one of the most effective ways to end hunger and improve political stability. There are 50 million smallholder farmers in Sub-Saharan Africa alone, and they support many millions more. Countries on the continent that have invested heavily in agricultural development and smallholder farmers have been successful at avoiding famine.
Consider the example of Ethiopia, which experienced one of the worst famines in history in the mid-1980s. An estimated one million people died during that crisis, which was caused by a combination of conflict and drought, and it took many years for the country to recover.
Today, Ethiopia is peaceful, but drought conditions have returned. In 2016, the country suffered its driest growing season in 50 years. And yet Ethiopia did not experience famine last year. There were hungry people, to be sure, but disaster was avoided. Oxfam attributes this to the fact that the government was better prepared to deliver food and water to millions. The country has also vastly improved its farming infrastructure, and new irrigation and drinking water systems provide rural areas with easy access to clean, safe water sources.
For more than a decade, the Ethiopian government has made agricultural development a top priority. In 2010, it created the Ethiopian Agricultural Transformation Agency, a public entity dedicated to boosting the productivity of the agriculture sector. As the noted British author and Africa researcher Alex de Waal has noted, “Politics creates famine, and politics can stop it.” Ethiopia proves his point. While domestic and international contributions still flow during relief efforts, it is Ethiopia’s long-term investments that have increased the country’s resilience.
An increase in strategic agricultural investments, from African donors or international sources, could help other countries in the region reap similar rewards.
Climate change is making such investments even more urgent, as extreme weather events – both flooding and droughts – are becoming more common throughout Sub-Saharan Africa.
Even without government support, however, farmers can take modest and cost-effective steps immediately to mitigate climate shocks. By using smart farming techniques such as drought-resistant seeds, intercropping, composting, and crop diversification, farmers can blunt the effects of extreme weather at very low costs.
Trees are one of the most effective tools we have for fighting climate change, and they also make economic sense for small farmers. A farmer who invests $2 in seedlings can make a profit of more than $80 in ten years, when some of the full-grown trees can be cut and sold. Trees also benefit the environment while they are growing – by absorbing carbon, improving soil health, and preventing erosion.
Farmers who have an asset base of trees, livestock, or cash generated by selling crop surpluses are better able to withstand weather shocks. And, as our organization is currently demonstrating in six African countries, farmers can build their asset bases with training and financial support. That is why we believe African governments and bilateral donors should deepen their investments in programs that provide farmers with the skills to produce long-term crops, especially trees, sustainably. Inexpensive practices – such as planting crops in rows, weeding correctly, and applying fertilizer in micro-doses – are also proven methods to increase crop production dramatically.
With the effects of climate change expected to intensify in coming years, Africa’s smallholder farmers must prepare now for a more turbulent future. The United States has historically been the world’s largest donor to global food security programs, but the future of this leadership role under President Donald Trump is uncertain. While global food security initiatives enjoy bipartisan support in the US Congress, the Trump administration’s proposed foreign aid budget recommends deep funding cuts to these programs.
As US support waivers, African and European governments, foundations, institutional donors, and practitioners must be ready to step in to help African farmers build long-term resiliency. Investing in agriculture is the most efficient way to improve food security in Africa, while ensuring that people on the front lines of the fight against climate change can maintain thriving economies and sustainable, healthy environments.
Only through careful planning, and by following the lead of countries like Ethiopia, can Sub-Saharan Africa address the underlying causes of hunger. Although food security is a complex problem to solve, preventing future famines doesn’t have to be.

Stephanie Hanson is Senior Vice President of Policy and Partnerships at One Acre Fund.
Whitney McFerron is a writer and editor at One Acre Fund.

Efrem Seyum

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Name: Efrem Seyum

Education: BSC in Computer Science

Company name: Addis Milk

Title: Owner and manager

Founded in: 2012

What it does: Sells milk products

HQ: Debre Birhane

Number of employees: 39

Startup Capital: 2,000 birr

Current capital: Seven million birr

Reasons for starting the business: I learned how to make cheese in Italy

Biggest perks of Ownership: Being free to develop your own ideas

Biggest strength: Communication

Biggest challenge: Financial management

Plan: To export my product

First career: Advertising

Most interested in meeting: Bill Gates

Most admired person: Bill Gates

Stress reducer: Being alone

Favorite past-time: Working

Favorite book: Fiker Eskemekaber

Favorite destination: Debre Zeit

Favorite automobile: Toyota Land Cruiser

Happy new year – again

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With the opportunity to celebrate both the Gregorian and Julian calendars’ new year in our fair nation, we also have the opportunity to reflect twice per year on how effective we are in doing our business and on what we can improve. The arrival of the new year will inspire many to realise that we have entered a new era indeed, in which Ethiopia is beginning to prosper and stand out in terms of development and growth. We have a full year ahead of us again, to lay the foundation for real change, to be remembered as a new beginning.
That sounds exciting and promising but just saying it is not going to make it happen. It takes action to make it happen and the way we have been doing things so far really need to change. It also takes the efforts of many to make it happen. The government alone cannot make it happen and neither can the private sector, the church, donor organizations or individuals for that matter. It needs a massive make over of the way we do things if you ask me. If we want different and better results, we need to do things differently. We cannot expect things to improve if we keep doing things the same way as before.
Over the past few years we saw a remarkable improvement in services and infrastructure in this city and I believe in other parts of the country as well. There is a danger however for this progress to deteriorate again and return to more frequent power cuts, poor road works and no progressive improvement in telecommunications and internet services to mention just a few. Interestingly enough these are essential ingredients to attract investors and to make the nation tick.
Last week for example I noticed workers erecting a barbed wire fence on the middle kerb of one of the roads in the city centre. The purpose I guess was to prevent pedestrians to cross the road over the middle section of the road, where tree seedlings were planted. The material used to support the barbed wire was short sticks or branches, stuck into the ground. I remember wondering how long this construction would last and indeed the next day a stretch of some 25 metres was already taken down. A week later, most of it has been destroyed. What a waste of money. Why do we keep on doing things in the same pathetic way and expect a good result? Also, every day on my way to work I used to pass a bridge, which was too narrow to accommodate the flow of traffic. It is for this reason that the construction of a new bridge began, next to the old one, promising better days to come. At a certain moment the construction came to a stand-still, while the old bridge was not maintained, causing more jams every day as its potholes got deeper and deeper. The way road users reacted to such developments was not encouraging either as they got more aggressive in pushing their way through. I have noticed a growing sense of selfishness in general as promises are not kept and the interests of others are ignored. It is “Me first, then you.” If these are the first days of a new year, things need to change indeed. So what can be done? What is it that needs to change? Here follow some suggestions – in no particular order of what I think can be done differently individually, socially and corporately.
dowingI could go on but looking over the table it is really all about respect, mutual benefit, efficiency and effectiveness instead of selfish short term gain. It is about making a choice, a conscious decision to want to make a difference and take responsibility so that we will get better results over time.

Happy new year!
Ton Haverkort

People Power

Gemechu Waktola (PhD) is executive founder and CEO at the i-Capital Africa Institute and Assistant Professor at Addis Ababa University (AAU). He has taught courses on strategic human resource development, managing change and organization and human capital at AAU. Capital’s Muluken Yewondwossen talked Gemechu about i-Capital Africa Institute and its recent financial summit, Excerpts;

Capital: What is I Capital and why did you establish this organization?

Dr. Gemechu: Even though I came up with the idea there were partners and co-founders when the organization was formed in 2015. Our studies were related to organizations, developing an effective business, managing and developing capital. We began working on a consultancy service to help us ask better questions and understand how companies can be more competitive and effective in the future.

So we decided to establish a consultancy service for public or private organizations. We believe that organizations need to work on human development. Often, businesses believe the way to success is to invest in high tech equipment or infrastructure but in reality developing the skill of human resources is vital.gemechu-waktola-2

We focus on four major areas, a platform for knowledge sharing and critical voices, human capital development, advisory services, and data. We take research based practices and share the knowledge with industries to enhance their policies or practical activities. We also work on developing skill sets through our human capital development packages and management trainings. Most of the packages are undertaken via international partners like the International Financial Corporation (IFC), the private sector wing of The World Bank.

Unlike other countries it is difficult to get data in an organized fashion from most companies in Ethiopia. This makes it difficult to analyze past experiences and develop future strategies and better policy  or new products, so we work with companies to get better data as well.

Capital: The private sector has been growing but lack of managerial skills is still a major challenge. Many businesses are run by traditional methods as opposed to considering new knowledge or research what are you doing about this?

Dr. Gemechu: Knowledge is not what has driven the Ethiopian economy. For example the civil service institutions have ample employees, but we do not get innovative service and the bureaucracy strangles many since advancement is not based on competency, capacity, skill and character. Proactive based knowledge and skills have to be improved, you see this in businesses that come from abroad. Local businesses have to enhance the knowledge and skills of their employees to compete. For example if you do not really have a grasp of technology and how to operate it you can’t be competitive. Funding is less of an issue than this. Figures indicate that existing finance is 10 times higher than the total GDP of the world so the challenge is how to manage the finance based on the talent of change agents. Local business must learn to value talent.  Our human capital conference is designed to emphasize this.  We want to encourage people to recruit top talent.

Capital: You’ve held several major events. Two weeks ago the I Capital Africa Institute carried out the second Annual East Africa Finance Summit at the Economic Commission for Africa. What was the main objective?

Dr. Gemechu: In the knowledge economy we have to include the experience of many. That is why we call it the East African Summit.  We wanted to learn from others in our region. It was a public private partnership co-organized with public universities and other public institutions. Last year was our first time running it and we came up with a central theme of building competitive and cooperative financial institutions in the region. Participants came from Kenya, Germany, the US, and other areas.

Several impressive papers from Kenya and the National Bank of Ethiopia were presented. One difference between Kenya and Ethiopia is that they believe in innovation first followed by regulations whereas in Ethiopia the reverse is true. Insurance, innovation and human capital were also discussed in the sessions. The implementation of a capital market that Ethiopia experienced about a century ago was also reviewed.

This year we focused on ‘preparing for tomorrow building a proactive finance sector in East Africa’. Things are changed frequently, there are many disruptions. There were 13 papers presented and a policy roundtable held.

Capital: Similar issues came up in both summits; merging, regulating the insurance industry and a secondary market. Why do you think this occurred?

Dr. Gemechu: Well the issues keep coming up because they are not adequately resolved. For example the capital market problem was mentioned at both summits because it is a key issue and there has been some progress for example this year there is more data showing a cost benefit analysis of establishing a stock market.  The lack of a stock market has affected projects and finance in the country. An organized and well structured secondary market would benefit the private sector. Mergers were mentioned by an expert from South Africa saying they would enhance regional competitiveness.

Capital: What is your perspective on this specific issue?

Dr. Gemechu: I believe in market power as opposed to forced mergers but the capital requirement will force banks to merge. The economy needs strong financial institutions.

Capital: What are the points raised regarding insurance businesses in Ethiopia?

Dr. Gemechu: The insurance sector got a lot of attention in the session.  The consensus was the central bank was not the right body to govern the insurance industry. Lack of creativity and innovation are others concerns.  Competiveness depends on premium prices. Lack of new products and skilled labour are major challenges the insurance sector is facing.

Capital: What else have you been doing?

Dr. Gemechu: In addition to the financial sector, we have a knowledge sharing platform and we have cement, concrete and energy events. The other major event that we are directly involved in is the continental human capital development platform. Our main intention is not to facilitate these events; instead we look at them as our main products. Networking and trust are crucial in the business so we hold these events to develop these networks. When we develop other products we will increase our trust and network. The knowledge sharing platform helps us include new products and reach out to potential customers. We have to make people more employable. Jobs are going to change and disappear in the new future so we have to be prepared.