Investment in agribusiness vital to ensure food security in developing countries: UNIDO

Addis Ababa, November 6, 2024 (FBC) — UNIDO Director General Gerd Müller emphasized the need to mobilize more public and private investments to ensure growing food security demand particularly in developing countries.

The second day of World without Hunger Conference focused on mobilizing investment to drive sustainable food security and delved into insights of teams of agribusiness, infrastructure, technology, and renewable energy, two global leaders’ debates and a post-harvest session and an investment forum to connect SMEs, among others.

Addressing the high-level gathering, UNIDO Director General Gerd Müller emphasized the importance of mobilizing much more private and public investment and technology partnerships between industrialized countries and developing countries in agribusiness.

“Investment in agriculture has been falling significantly in the last few years. So we need to catalyze investment and need to expand the access to finance to small scale farmers. Government expenditures on agriculture, particularly in developing regions have decreased relative to the sector’s contribution to GDP. Public investments are not keeping up these growing demands of global food security.”

The food demand will increase by 70 percent by 2050 and that is the challenge for the next 20 years. So FDI in agri-food systems has come down sharply in recent years, he noted.

Ending hunger is possible, and to end hunger by 2035, it costs additional 50 billion USD worldwide every year for the next over 10 years, he said citing to a study.

He expressed UNIDO’s commitment in collaboration with international partners to support investments and transformation of the food systems.

Today’s investment forum is so important to support agribusiness entrepreneurs, he underscored.

Industry Minister Melaku Alebel on his part stated that “Ethiopia is dedicated to building resilience and inclusive food system that provide reliable access to nutritious food. This effort requires innovative, productive and sustainable approach that can withstand the challenges of climate change and resources scarcity a key part of this vision is agro processing.”

By transforming raw producing to market ready goods, agro processing reduces waste, extends shelf life, and drives economic growth by creating jobs and empowering rural communities, he added.

“Our integrated agro industry parks are already making a difference. With significant investment, three integrated agro industry parks are operational, connecting 140,000 smallholder farmers to market and creating more than 17,000 permanent jobs. This progress highlights the importance of partnership between government, private sector and international partners.”

Ethiopia has launched the Made in Ethiopia movement, a flagship initiative to build on the successes of the integrated agro industry parks and transform the agribusiness and industrial sectors.

Since its inception, the movement has revitalized over 400 enterprises, demonstrating Ethiopia’s commitment to industrialization, food security and sustainable economic growth.

“Despite these accomplishments, Ethiopia’s journey towards sustainable food security depends on continued collaboration and investment from the global community.”

It needs optimum investment to enhance production and productivity in the rural areas through agro processing. Public-private partnership and international support are essential to expand our efforts and sustain progress, he explained.

The minister invited investors and partners across the globe to engage in investments and support priority areas in the sector.