About 70 percent of Sub-Sahara African population lives in rural areas where the main source of livelihoods is agriculture. Farming systems in those rural areas vary from small-scale subsistence farming in most remote villages to medium-scale commercial production mainly serving the urban population. Persistent poverty is widespread in the rural population and is often exacerbated by climatic changes, political conflict, and the HIV/AIDS pandemic. Africa’s agriculture sector is characterized by low productivity, especially among the poor smallholder farmers. The low productivity has been attributed to a host of factors related to the range and intensity of biophysical constraints to plant growth, large agro-ecological variation, the absence of policies that encourage crop improvement, very low and declining soil fertility, and the underdeveloped state of the seed sector in most countries. Increased productivity in those agrarian systems complemented by improved access to both input and output markets is key to reducing poverty and improving food security. Pioneering Africa’s “Green Revolution” requires increased use of high yielding crop varieties that can survive harsh terrains and recurrent droughts.

The seed sector in Sub-Saharan Africa is dominated by informal supply systems with farm-saved seeds accounting for approximately 80% of planted seeds. Improving smallholder farmers’ access to new high yielding varieties and hybrid crops requires better coordinated marketing efforts and expanded distribution systems. Because of their small size and market orientation, small-to-medium sized emerging seed companies have a 'potential competitive advantage' in meeting the needs of smallholder farmers. Emerging seed companies -- the nexus of publicly supported agricultural bio-technology and newly created market opportunities for the private sector -- can promote food security and poverty reduction within economically disadvantaged rural communities. However, these emerging domestic companies have limited financial and managerial resources and are often hampered by complex and bureaucratic legal frameworks. As infants in the industry, small- to-medium sized domestic seed companies need short term assistance, especially in establishing a solid financial base and developing management capacity.

From many years of working with small-to-medium sized companies in East and Southern Africa as the coordinator of the Seeds of Development Program, I have learnt that strengthening Africa’s private seed sector to serve smallholder farmers requires a coordinated effort anchored in at least four complimentary inputs: Appropriate Technology, Affordable Financing, Conducive Policies and Regulations, and Business Development Services. Those key inputs are explained briefly below.

Technology - Research and Development

Most of the biotech research in Africa is conducted by public research institutions such as national agricultural research organizations (NAROs) and international research institutions such as the CGIAR. Though many appropriate technologies have been developed by these institutions, relatively few have been commercialized. To facilitate the technology transfer, a need exists for better coordination between the private seed companies and the research institutions.

Capital / Financing

The lack of affordable financing limits the capacity and growth of small-to-medium sized seed companies. The organization of the financial sector in Sub-Saharan Africa remains bi-polar with relatively large-scale commercial banks (subsidiaries of international banks and locally owned entities) at one end of the spectrum, and micro-finance institutions at the other. A serious need exists for targeted sources of innovative capital to finance medium sized agribusiness enterprises.

Policies, Regulations and IPR

The growth of a private seed sector in Africa is often hampered by ill-defined or bureaucratic government policies and regulations. The lack of well defined and enforced Intellectual Property Rights statutes also stifles technology transfer especially from multinational companies. The concurrent efforts to harmonize seed policies and regulations in East Africa (ECAPAPA) and Southern Africa (SADC) are underway.

Business Development Services

In general, start-up seed companies in Africa are managed and owned by entrepreneurs with expertise in crop breeding. The companies are constantly seeking to improve the management of key aspects of the business such as finance, human resources, marketing, and distribution. Coordinated by Market Matters Inc., the Seeds of Development Program was created to offer business development services to small and medium sized seed companies in East and Southern Africa.

Given the above, I am convinced that improved performance of small-to-medium sized seed companies will result in improved market access by smallholder farmers to locally adapted and affordable seeds and, in turn, further result in increased productivity, improved food security and ultimately reduced rural poverty. A viable private-sector led seed system is critical if not determinate in bringing the much awaited Green Revolution to Sub Saharan Africa.

Dr. Edward Mabaya can be reached on em37@cornell.edu

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