THE PROSPECTS FOR AN AFRICAN BIOECONOMY

E Jane Morris

SWEDISH INTERNATIONAL AGRICULTURAL NETWORK INITIATIVE

STOCKHOLM27 SEPTEMBER 2013

The Challenge in sub-Saharan Africa

More than 40% of the population live on less than $1 a day

One in three people are under-nourished

Agriculture is the largest employer of labour

Agriculture is responsible for over half of export earnings

Agricultural productivity has stagnated and agricultural production per capita has fallen over the last four decades

Agricultural research has failed to translate into economic improvement

The Challenge in sub-Saharan Africa Africa lags behind much of the rest of the

world in economic development The current trajectory of economic

development is ecologically unsustainable SSA is one of the regions where natural

services are most threatened by human impact

Agricultural productivity and crop yields need to increase dramatically in order to avoid clearing increasingly more virgin land for agricultural production

More efficient use of all agricultural biomass is necessary, including waste minimization and value addition through agroprocessing

Farming systems in Africa Small scale farms account for 90% of

agricultural production Poorly developed markets and inadequate

market access Poor infrastructure Lack of knowledge, resulting in inadequate

technology adoption and adaptation Use of unsuitable varieties and poor

management practices Do farmers want to remain in this situation?

NO! HUGE POTENTIAL FOR THEM TO BECOME

MARKET ORIENTED PLAYERS IN A SUSTAINABLE BIOECONOMY

What do we mean by a Bioeconomy?

Sustainable production and conversion of biomass, for a range of food, health, fibre and industrial products and energy, where renewable biomass encompasses any biological material to be used as raw material (EU)

A world where biotechnology contributes to a significant share of economic output (OECD)

which needs to be contextualized within a Green Economy:

A system of economic activities related to the production, distribution and consumption of goods and services that result in improved human wellbeing over the long term, while not exposing future generations to significant environmental risks and ecological scarcities (UNEP)

None of this can be achieved without innovation, i.e.:

Transfer and application of knowledge, R&D and information (OECD)

The innovative application of technology to create products or services

Can involve adoption, refinement and modification of existing technologies – not necessarily new cutting edge technologies

In Africa, bioinnovation follows one of three routes:1. Community level innovation. eg

Application of indigenous knowledge in traditional medicines, or the use of fermented products as a means of preserving food.

2. Technology transfer and adaptation from developed countries; eg micro-propagation, marker assisted selection, animal vaccines.

3. Implementation of technologies developed elsewhere in the world, eg adoption of insect-resistant (Bt) cotton by small scale farmers in Burkina Faso and elsewhere after backcrossing into local varieties.

What can bioscience innovation contribute?

Improved crop varieties appropriate for local conditions

Improved animal breeds Plant and animal diagnostics and health

solutions Novel agroprocessing solutions

providing value addition to primary production

Reduction in post-harvest losses Novel crops with potential for high

economic return

What about a Bioeconomy strategy?

EU Bio-economy Strategy focuses on the potential for conversion of agricultural biomass into food, feed, bio-based products and bioenergy

US Bio-economy Blueprint focuses on new drugs and diagnostics for improved human health, higher-yielding food crops, biofuels and bio-based chemical intermediates

China sees the bio-economy as a means to tackle certain economic and societal challenges rather than an end goal.

AFRICA???

IS AFRICA MAKING ANY PROGRESS TOWARDS THE DEVELOPMENT OF A BIO-ECONOMY?

African case study – Striga tolerant cereals

21m ha infested across Africa, major crop losses

BASF developed herbicide tolerant maize that would kill Striga

Technology deployed through AATF Limited uptake Uptake hampered by limited seed

availability, lack of training for farmers Need for brochures in local languages –

provided by NGOs

African case study – banana tissue culture

Disease results in low yields and shortened life of plants

Tissue culture bananas provide disease free planting material

Concerted efforts to enhance uptake and improve distribution of plantlets

Technology uptake low (eg 5% in Kenya) Uptake hampered by high costs of production,

lack of access to credit by farmers, the need for agricultural inputs, and knowledge of the required agronomic practices

Need for disease resistant plants

African case study – microbial fermentation in South Africa

Technology to produce the amino acid lysine developed in South Africa

1996 - $70M investment in fermentation plant to produce 11 000 tonnes per annum

Technologically successful though a steep learning curve

1998 – management buyout Plant suboptimal in size, tried to diversify

into other less commoditized amino acids 2009 – acquired by a Canadian company,

moved to yeast production

African case study – value addition through agroprocessing Various initiatives to add value to

agricultural products across Africa Eg Cassava in Nigeria, cashew nuts in

Kenya, liquorice in South Africa, edible oils in East Africa

Governments and private sector have all recognized the potential for growth. Market-led, private sector involvement is key for success.

Needs to be a strong linkage between producers and processors

Technological, market, institutional and infrastructural issues must all be addressed

Challenges and hurdles (1)

Access to finance, markets and business advisory services Support for business plan development Seed funding and venture capital Lack of purchasing power in local markets Transport costs and difficulty of access to

markets in the developed world Time and cost of product development

Lack of critical mass (expertise, facilities, money)

Leads to lack of competitiveness

Challenges and hurdles (2)

Intellectual property Weak protection of IPRs in much of Africa Difficulty of accessing IP to ensure

Freedom to Operate High cost of patenting Liability and redress concerns Protection of indigenous knowledge

Policy and regulatory hurdles Policies and legislation do not support

innovation Lack of regulations for biological products

Challenges and hurdles (3)

Funding for R&D Lack of government support for research,

development and innovation Reliance on donor organizations Lack of modern equipment, and/or funds to

run and maintain equipment Lack of pilot plant facilities

Technical skills and know-how Lack of technological readiness hampers

innovation

SOME SOLUTIONS Public-private partnerships

Eg WEMA, Syngenta Foundation projects Bioincubators

Need to be developed throughout the continent

Regional African collaborations CORAF/WECARD, ASARECA etc

Sustained donor-funded programmes Eg Bio-Innovate

Technology licensing Eg P57 in South Africa

FUTURE OPPORTUNITIES

Improved crops, Animal vaccines and diagnostics Medicinal products derived from the

continent’s biodiversity Biofuels, Biological fertilizers Biological control agents Plant and animal diagnostics Biological waste treatment Nutraceuticals Cosmeceuticals

THE WAY FORWARD Innovators must focus on areas where Africa

has a real competitive advantage Increase investment in market research and

technology benchmarking Increase global competitiveness through

investment climate reforms Increase investment in skills development Lobby for strong political leadership to

remove generic roadblocks Build on synergies through collaboration Strive for an integrated approach to

development of the bioinnovation value chain – Innovation Systems approach

INNOVATION SYSTEMS APPROACH

Demand Domain• Consumers of food and food products in rural

and urban areas• Consumers of industrial raw materials• International commodity markets• Policy-making process and agencies

Enterprise DomainUsers of codified knowledge, producers of mainly tacit knowledge • Farmers• Commodity traders• Input supply agents• Companies and

industries related to agriculture, particularly agroprocessing

• Transporters 

Intermediary Domain• NGOs• Extension services• Consultants• Private companies

and other entrepreneurs

• Farmer and trade associations

• Donors  

Education and Research Domain

Mainly producing codified knowledge• National and international

agricultural research organizations

• Universities and technical colleges

• Private research foundations Sometimes producing codified knowledge• Private companies• NGOs 

  

Support structures• Banking and financial system• Transport and marketing infrastructure• Professional networks, including trade and

farmer associations• Education system 

TAKE HOME MESSAGE:

Swedish expertise has much to contribute towards the development of an African bioeconomy but an integrated approach will achieve more than piecemeal interventions