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THE PROBLEM

Despite Africa's immense potential for agricultural and botanical development...

  • Africa alone has 60% of the arable land of the planet.
  • The Democratic Republic of Congo (DRC), about the size of Western Europe, has about 80 million hectares of arable land, less than 10% of which is exploited
  • The DRC has 125 million hectares tropical forests
  • The country benefit from a young and dynamic workforce: 65% of the population is under 25

Africa is still suffering

  • As farmers struggle, DRC imports almost all its food and spends nearly $1.5 billion on food imports each year.
  • At local markets, the rice comes from Asia, the fish from Latin America, the chicken, corn and sugar from USA
  • DRC’s abundant fertile soil, tropical climate and other advantages should allow it to feed 2 billion people.
  • DRC is among the five poorest nations in the world. Nearly 64 % of Congolese lives on less than $2 a day. 
  • DRC has one of the highest stunting rates in SSA (42% of children under age five). Malnutrition is the cause of nearly half of the deaths of children under the age of five. 
  • Low farming income in rural communities leads to survival strategies for small, older farmers resulting in severe degradation of the ecosystem.

Peasant farmers remain poor since the subsistence agriculture generates no real income, no quality control, and no industrial transformation.

So what's wrong with the agricultural system?!

  • In the African context, in general, agriculture is practiced by peasants gathered in cooperatives often created to avoid paying taxes. Thus, most of these agricultural producers do not operate in the formal economy as legally established agricultural SARLs would.

  • This results in very little processing and industrialization, which is usually done by a few well-heeled entrepreneurs who source at the best possible price from peasants, who remain poor.

  • With such a structure, value chains development does not benefit agricultural producers.

  • Moreover, the small-scale African farmer is often nomadic, with peasants renting land here and there, and moving according to rental contracts and the quality of the soil often impoverished by rudimentary agricultural techniques. This does not allow farmers to cultivate perennial crops, because they do not own the land. They are engaged in subsistence farming and have great difficulty accessing the market to sell their surplus production.

  • Lack of access to landownership also limits access to finance. Financial models/tools used by the formal private sector (loans, equity, debenture, guarantee, etc.)  are not accessible to informal agricultural producers because it is impossible to secure long-term loans for producers who operate in the informal sector on rented land. The lack of financing for agricultural producers limits their ability to build infrastructure, access equipment and high-quality inputs.

  • Such artisanal agriculture cannot generate decent financial flows for agricultural producers but only basic food. In addition, it has not yet integrated the valorization of local plants, often very rich in nutrients necessary for a healthy and balanced diet.

  • Add to this the fact that young people are not attracted to agriculture because they want to start businesses and become full-fledged entrepreneurs. As a result, the "cooperative" model is in jeopardy because there is no succession.

  • Locally grown value-added plants, rich in nutrients and active ingredients for the nutraceutical, cosmetic and biopharmaceutical sectors are not fully developed, although they could represent promising economic sectors and local solutions to nutritional and socio-economic problems. Despite the natural potential, sub-Saharan Africa (SSA) countries are absent from the Botanical growing industry. A number of reasons explain African's status with respect to botanical market including: (i) lack of capacity, including poor technical know-how, planning, policy, and governance; (ii) poor quality control, in an industry where international protocols and norms are strict, with very high standards for semi-finished and finished products; and (iii) limited access to key infrastructure and resources, such as roads, energy, research and financing.

  • Small scale farmers across Africa are trapped in a traditional botanical supply chains where profits are captured by big corporates and an army of middlemen, such as ingredient processors and sellers who take advantage of current business models that often do not improve the livelihoods of poor communities.

Failure to address the economic problems induced by the current corporate-dominant supply chain models has long-term environmental and social consequences as well. Deforestation and eventually environmental degradation worsen as poor communities look for ways to improve their livelihoods, for example by engaging in wood-burning, extending farming, or artisanal/ small-scale mining.

There is an urgent need to move from artisanal farming to professional and commercial farming.

BDA has a solution: the creation of innovative and financially sustainable agribusiness clusters that empower local communities and ecopreneurs by blending the concepts of entrepreneurship, land ownership, industrialization, sustainability, and social integration.

THE SOLUTION

BDA's innovative supply chain

BDA's supply chain is creating a shift from artisanal farming to the professional farming, producing innovative and financially sustainable agribusiness clusters. These clusters empower local communities and ecopreneurs by blending the concepts of entrepreneurship, land ownership, industrialization, sustainability, and social integration.

 

The project supports the transition from artisanal and informal agriculture to professional commercial agriculture, operated by entrepreneurs, trained, certified and ready to operate agricultural SMEs in the formal economy.

 

The approach aimed at structuring the value chains so that local businesses can be developed to generate decent incomes while contributing to the enhancement of biodiversity and overall community wellbeing.​

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