SENEGAL: Can agribusiness and family farming make a positive contribution to growth?

In Africa, agriculture is one of the keys to achieve sustainable growth and help solve poverty, unemployment and hunger issues. Senegal is one of the states for which agriculture is a driving force. The country is politically stable and there is plenty of fertile land available, with good climatic conditions and abundant water reserves. It mostly produces peanuts, cotton, sugar, seafood and fruits to export, and rice, corn and millet for local consumption. Almost 60% of the population live in the countryside.

 However, the potential of agriculture has been neglected. Large tracts of land remain unexploited despite favourable conditions, and local farmers want to increase production but lack the means to do so. Senegal does not ensure its own food safety yet, and imports huge amounts of resources such as rice, dairy products or vegetable oil. Even though Senegal would like to become an emerging country by 2035, its growth rate remains low compared to non-resource African countries, and poverty is still high (almost half of the population). Now the country counts on big companies equipped with cutting-edge technology, to produce massively and feed the growing population. But is it really sustainable? Sustainable agriculture could help solve the most recurrent problems and help create inclusive growth.

Investors from abroad are increasingly interested by Senegal's potential. Direct investment in the farming sector can help bring innovation and infrastructure to export high value-added products and create wealth. It could allow the country to become self-sufficient and create more jobs. The Senegalese government would like to invest in both family farms and agribusinesses to help the country develop. According to them, these two types of businesses are no longer in competition: they go together.

Sustainable agribusiness can help support rural communities in Senegal. Direct investment may benefit small-scale farmers and to local population by providing them with infrastructure they could not have afforded otherwise. It could help modernize businesses and help increase private income. Traditional family farming represents the largest part of the country's agriculture (95%), yet it is still neglected. The most powerful and competitive producers can make a profit in the short run. But can they insure a sustainable development in the long run for the whole country on their own? Small-scale farming covers 60% of the country's dietary needs. It is a different conception of an economy which is not only based on profit, but also promotes sustainability and environmental protection. It generates income for the rural population. Generations of farmers  managed to feed themselves that way until the International Monetary Funds' (IMF) structural adjustment plans tried to control inflation and promote foreign exports by cutting public spending and privatizing state-owned businesses. This led to a reduction of the part of the agricultural sector in Gross Domestic Product (GDP) and to an increase in imports of goods. Now 20% of family businesses are in debt and therefore can neither support themselves, nor invest.

Government actions

There is land, there is a local market and local demand. Farmers know that and they need financial support. The government's investment in agriculture is increasing and could be a sign of progress. They have decided to reinforce food security, improve the trade balance and develop higher added value products. The Senegal Emerging Plan (PSE) aims at helping the country develop economically and humanly, to match the criteria of an emerging country by 2035. This plan promotes agriculture which should be modernized to increase productivity and product quality, and includes scientific research at each production stage. The Senegalese Institute for Agricultural Research (ISRA) helps spread scientific knowledge in remote areas to help farmers. The Senegalese Export Promotion Agency help farmers to have information on the global market. The problem of transportation also needs to be solved to help farmer sell their goods. The government said it would invest in both family farming and agribusiness, as cohabitation is the key according to them. Family operations can help solve local demand, create jobs and respect tradition. Private businesses can help Senegal be competitive and have influence on the global stage. Agricultural policies should take into account environmental and health issues as well to insure sustainability. Senegal could become an emerging country thanks to the government's will to develop key sectors which include agriculture. It is important to keep a balance between traditional farms and private businesses, who can create long-term growth and social progress if they are combined.

Irène L.