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The four nations of West Africa – Algeria, Morocco, Tunisia and Cote d’Ivoire – are part of a complex political and ethnic landscape in which the economies of these nations are highly dependent on external factors such as the regional free trade area and its internal markets. In order to understand this dynamic, multi-ethnic and ever-changing region, it is essential to look beyond the dry textbooks and talk to people on the ground. A recent article in this journal, “The New Faces of Africa’s Markets,” written by anthropologists Flavio Pelle and Ulrich Roux, tackles this issue head on by describing previously unseen consumer behavior at the regional level, including the complex dynamics of the West African food market. The article offers fresh insights into the dynamics of regional trade and its impact on food preferences and cultural traditions, while suggesting avenues for future research.
According to the researchers, the presence of a plethora of cross-border trade routes and robust political and social frameworks allow the diverse communities across the borders to coordinate and interact constructively rather than simply reacting in destructive ways. For example, cross-border trade in grains such as millet and sorghum supports cross-cultural exchange and adaptation in agriculture and allows for cultivation of tolerant interdependent crops. The political and social environments also allow for greater regional control by some groups while hindering access by others. This provides a unique opportunity to observe and record new practices and behaviors in the context of West African regional trade at various spatial and temporal scales.
The paper identifies four main activities shaping the dynamics of west africa’s regional trade. These include migration, security, religion and economy. The research shows that West African migration has been shaped by security issues, with many individuals heading towards the safer, warmer regions of the country.
Religion has had substantial implications on west africa food markets, especially in terms of security. In most societies, religion plays a significant role in providing guidance and discipline in everyday life, particularly in times of conflict. The role of religion in this context refers to the social norms followed by the individuals living in different communities across the borders. Security services are deployed to protect people and properties. Thus, religion provides a sense of cohesion and identity to the individuals living in the same community, which helps them to form cohesive communities.
Economic factors have also had a huge role in shaping the dynamics of west africa food market. The presence of transit goods, like vehicles and equipment for farming, and metals and coal, as well as the infrastructure required for food production, fuel distribution, and waste management, provides opportunities for local farmers to access markets and compete on the price. On the other hand, the high capital costs and subsidies offered by the government help farmers to adopt new technologies and attract new investment into the region. As a result, the quality of the local raw materials and the variety of goods available in the market are improving. The fall in the prices of crops led by falling agricultural investments has helped the local economy to recover, but only at a very slow rate.
West Africa’s food markets are witnessing great changes and are providing ample opportunities to local producers and traders to reap benefits from international agricultural trade. The current global food crisis, together with the recent spike in the prices of basic commodities, has made it imperative for the governments to look for ways to promote the growth of the west africa grain trade. In this regard, ecowas trade liberalization programmes supported by the west africa regional trade and co-operation forum (WAF) are helping to boost the food market in this part of south-eastern Africa. The regional trade and co-operation forum (WACOF) was set up to promote business and investment in the area and encourages multi-country trade.
The West Africa Food Market (Wafm) programme hereby declares the launch of its second phase:late submission is now being assessed. It intends to enhance the design of regional agriculture projects through a flexible approach. The scope of work will include: implementation of project based risk management; the design of enterprise structure; development of agricultural extension programs; and improvement of agricultural marketing systems. These activities will be integrated with: training of rural communities; introduction and diversification of local agriculture markets; and improvement of food security in vulnerable areas.
The programme has proposed three methods to reach the goal of “sustainable development” of the west Africa food market. Firstly, the programme has proposed two approaches to equipping the sector with modern technology. This technology will allow farmers to exchange produce between themselves. The benefit will be full access to the national market. This is expected to reduce farm inputs such as fuel and fertiliser by more than 50%.
The second method is to train young men in horticulture and agriculture for a specified period of time. The workers will be allowed to access the national market after completion of training. This is designed to improve the level of exchange of information and eventually to encourage farmers to join the national process of marketing their produce. The last method is for the farmers to enter a fully subscribed WAFM network. In this case, the farmer would be required to participate in an agreed number of sifting and sampling events each year.
The main aim of the programme is to provide the needed finance to African farmers in order to increase their production of commodities in line with the current and upcoming demand in the international market. In line with this strategy, the programme has designed a mechanism for agricultural fund allocation. This is used to purchase raw materials, fertilisers and machinery at low prices. These commodity investments are used to improve the production of finished products and for new agricultural development. In turn, this will support the overall development of the west africa food market.
There are two main areas that this programme focuses on. Firstly, it focuses on the development of agriculture in west Africa through implementation of agricultural finance programs. This ensures that smallholders have access to capital and become eligible for customised foreign exchange trade. Secondly, it facilitates the integration of agricultural production markets by promoting the establishment of agro-industrial units. These facilities provide the necessary financing and trading platforms for the processing of commodities in different zones across west Africa.
As a result, the programme has played a key role in unlocking capital for the agricultural sector in west Africa. Through these programmes, investment in infrastructure and production capacity is improved. At the same time, these agricultural commodities exchange commodities benefit the local market by reducing overage cost and helping to increase agricultural production. Ultimately, this will help to diversify the export basket and boost the competitiveness of the west africa agricultural production sector.
Africa’s food market is growing faster than many people realise. With the right investment, it is possible to tap into new markets that have not been accessible before. There are now almost two hundred million consumers in sub Saharan African countries who can afford to eat more well-rounded meals and at reasonable prices. However, a massive amount of new commodities have not yet been traded between major global trade partners. The best way to gain access to these markets is through the African commodity trade.
African food markets offer a wide range of opportunities to traders and consumers. The west africa food market has experienced explosive growth over the past decade. This growth has led to the entry of many new players in the agricultural export market. Most importantly, it has also resulted in increased levels of competition among traders. The impact of the growth has made it essential for African farmers to develop their strategies to keep abreast of the competition.
A critical aspect of any business in west Africa is to diversify its business model to remain successful. In this case, it is important to explore all possible avenues to increase the exposure of the firm to different markets. A comprehensive approach that combines traditional farming with off-farm processing is a winning strategy. A successful firm will be one that develops a comprehensive marketing plan based on its strategic partnerships and develops its own niche in the food market.
For example, one company that is making inroads in west africa is Ayodeji, which is based in Nigeria and is one of the biggest providers of premium grades of sugar. The company is also exploring opportunities in the procurement of raw materials, refining and manufacturing pharmaceuticals and other industrial chemicals. Ayodeji has signed several strategic partnerships with international commodity trading companies to help them expand their presence in the region.
Ayodeji’s Managing Director, Mr. Idiagdon Ekechi, stated that, “Ayodeji will expand our footprint in the area by helping our smallholder farmers access the markets in western Africa. African consumers will be able to benefit from the high quality, low cost and timely delivery of our products.” Another company that is making inroads in west Africa is Osiris Nutrients, which has signed a deal with the Nigerian government to export 400 metric tons of black pepper in the next four years. The company plans to invest $500 million in the venture. The investment is expected to generate about 40 direct jobs for nigeria farmers over the next four years.
As illustrated, food entrepreneurs are stepping into the new markets of west Africa at a much faster pace. This represents a huge opportunity for the companies involved in the business. The best part about these ventures is that most companies are developing a niche strategy. That means that they are taking a look at the characteristics of the market to determine what products to offer. The companies will continue to find new markets as long as demand exists for the commodity that is being traded.