Kenya’s investment in macadamia nuts has positioned the country as a leading exporter in the region despite regulatory and market challenges in the sector.

This is according to the 2024 Africa Agriculture Status Report by Alliance for a Green Revolution in Africa (AGRA).

The study indicated that the country’s investment in Macadamia farming, alongside the adoption of digital platforms for farm management, has enabled Kenya access to the global market.

The report highlighted micro, small, and medium-sized enterprises (MSMEs) as a positive force in building and transforming Africa’s food systems for sustainable economic growth.

Agnes Kalibata, President of AGRA, stated that MSMEs have been crucial for driving agricultural productivity and economic development.

“The Africa Agriculture Status Report 2024 highlights the transformative role of MSMEs in shaping Africa’s agri-food landscape. By harnessing the power of the private sector, we can drive meaningful food systems transformation and achieve sustainable growth,” said Kalibata.

The study revealed that the private sector drives 80 percent of Africa’s food economy, with MSMEs playing a dominant role in managing around 85 percent of the agri-food value chains.

“This report marks a significant milestone in understanding the private sector’s influence on Africa’s agri-food systems. This underscores the critical importance of supporting these enterprises to enhance food security and stimulate economic growth,” added Kalibata.

She noted that the MSMEs enterprises are vital drivers of growth and innovation, urging for increased support and collaboration between government and the private sector to address challenges and unlock new opportunities needed for sustainable development.

The report, which focused on countries including Kenya, Nigeria, Ghana, Malawi, Zambia, and Tanzania, showed how investments in cash crops, infrastructure, and digital technologies are driving diversification and boosting export growth.

‘The report ultimately urges governments, development partners, and private sector stakeholders to collaborate in addressing the challenges and seizing growth opportunities identified by investing in infrastructure and supporting MSMEs,” said Kalibata.

The report concluded that digital technology is transforming agricultural value chains by improving access to inputs, credit, and market information.

Platforms like M-Kulima and M-Pesa in the East Africa region are also streamlining transactions and enhancing input distribution efficiency.

Additionally, smallholder farmers are becoming more accessible to mechanisation through digital tractor leasing services like Hello Tractor, which will increase productivity and cut expenses.