Experts: Different policies needed if African food processing industry to grow
Ousmane Badiane, co-chair of the panel, told VOA the growing middle class wants to consume African foods with modern conveniences like improved packaging and ready-to-eat options.
"The combination of population growth and income growth and urbanization has resulted in a large and growing middle class," Badiane said. "What's interesting about this middle class, though, is that they want to continue to eat the traditional food items that they have grown up with, but they want to eat it differently.”
One such food is manufactured by Forna Health Foods in Uganda. Forna makes composite flour, which consists of mixing 12 different flours to produce porridge for children and older people.
The company director, Hilary Bainemigisha, said their food products are nutritious and easy to prepare.
"We have two versions. We have one that doesn't need to be cooked. It is popular among … corporate people who are at the office. It is popular among travelers, among students, among people in hospitals who have no facilities but can access hot water in a flask," Bainemigisha said. "But even … the version for cooking, you only need to cook water or milk up to boiling point then you add in the paste and you stir."
But Bainemigisha said the company faces hurdles, such as accessing a sufficient supply of raw food outside the harvest season.
Because of that, she added, providing good food at a fair price is not easy.
"Away from the harvest season, prices of grain are high. But for us, the product must remain at the same price. So, our profit margin reduces greatly the farther away we go from harvest," Bainemigisha said. "But during harvest, we need to invest in storage such that we buy a lot during harvest, and stabilize our profit margin. Secondly, we mix too many flours and that means our production costs are high."
The food processing sector also faces challenges due to a lack of infrastructure and logistical operations. The U.N.'s Food and Agriculture Organization says 30% to 40% of food produced in Africa is lost before it reaches the customer. The food waste or loss amounts to an estimated $1 trillion each year.
Agricultural experts blame African governments for failing to protect technology innovators whose work is copied and stolen, which has led to people shying away from doing business in Africa.
Badiane said the processing sector is critical to modernizing rural areas, and needs more government attention.
"This is the environment around the emerging processing sector, which I think in many cases hasn't yet gotten the level of attention it needs from governments. But this is the most important next thing in developing and modernizing the rural areas,” Badiane said. “It's far away from the rural areas, but this is going to be the trigger for progress and modernization of the rural areas."
The researchers say Ghana, Kenya, Senegal and South Africa have made progress in encouraging the growth of food processing firms.
They say those countries have established food safety and quality control, invested in technical and vocational education and training, offered tax breaks, assured the supply of raw materials, and provided access to financial credit, which helps processors acquire better machinery and improve production capabilities.