Senwes Scenario: September - November 2020 | Page 46

NEWS

Digital models from Kenya ’ s small-scale agriculture could help SA ’ s pandemic-stricken farmers

Professor Cyril Nhlanhla Mbatha , Director of the Institute of Social and Economic Research ( ISER ) at Rhodes University , says emerging farmers and land reform programmes must embrace digital solutions to survive Covid-19 .
Kefiloe Manthata Senwes Journalist

The limited reopening of restaurants and hospitality announced by President Ramaphosa is good news indeed for small-scale farmers who have seen lockdown measures decimate demand while Covid-19 continues to compound the challenges they face . Previously cited issues , such as limited access to markets and finance and a lack production , business and networking skills , pale in comparison to complete market standstill faced by some farmers serving these key sectors .

Although the production , transportation and sale of agricultural goods and food remain an essential service in South Africa , the decrease or complete collapse of demand from hospitality , tourism and other key sectors in the value chain has had an immediate negative impact on local farmers . With national borders across the African continent closed to tourists , the negative effects have also been most pronounced on small-scale farmers across Africa who rely heavily on the tourism sector and related businesses . These farmers , mostly located along the coastal areas of many African countries , have been disproportionately affected compared to those located in more inland locations , for example the maize producers in and around the Rift Valley in Kenya , who serve mainly local consumer demand , often through centralised government schemes .
Business relief opportunities have had limited reach for small scale farmers in South Africa and the administration of these bailouts has been challenging . Small farmers in other African regions also have little access to the protection of government safety nets including bailouts through this crisis . African governments often do not have the financial resources to set up schemes like , for example , those set up by the US Department of Agriculture ( USDA ) to buy excess supplies . Like many other small businesses , some small-scale farmers with strong direct links to the hospitality industry have had to completely shut down production during complete lockdowns . The exit of these farmers from production lines may have contributed hugely to current food price hikes , as total supplies drop and transport costs increase as reported in some West African countries .
These sudden negative developments have forced us to review many of the previously useful lessons and strategies that researchers have advocated for supporting and growing emerging farmers , especially within the land redistribution programmes in the land reform project . As for many businesses , the panacea may lie in digital solutions , demonstrated in ongoing research from Kenya .
LEARNING FROM OTHER MARKETS In East African countries , such as Kenya , farming is a very important economic sector which accounts for about 75 % of the workforce , while contributing 26 % to GDP . Many of the most successful farmers are smallholders , cultivating an average land size of about 1,4 ha . Case studies in those locations show that addressing the challenges of information access as well as establishing direct links to buyers through stable agreements , rather than through brokers , are key ways to help
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SENWES SCENARIO | LENTE SPRING 2020