Brussels Policy Briefing:

Creating Opportunities for rural youth in transforming food system

Opportunities for young entrepreneurs in serving urban or semi-urban markets

By Dimakatso Sekhoto (Nono)Director March 2017

Sub-Saharan Africa’s youth population is increasing, with the 15- to 24-year-old age group at 200 million, a figure that is expected to double by 2045, according to population experts. But agriculture could potentially provide enough food and jobs.

AfricaRenewel Magazine “Denting youth unemployment through agriculture” NEPAD, the African Union’s development agency, calls youth unemployment a “time bomb.”

Nono Sekhoto

• Background: 7 year career in financial services industry

• 2011 Joined my father at our commercial farm (2,100 ha) in Free State: experience in

dairy, apples, beef, sheep, plant maize and sunflower

• Scholarship in business course: and Agricultural Enterprise Management Certificate

• Rural and Agricultural Finance, Training course at Frankfurt School of Finance and

Management

Exploring the Agricultural Sector• Established GrowthShoot: focused on empowering youth in agriculture

• African Farmers Association of SA (AFASA), NEC member youth coordinator

• Presidential Youth Working Group, Representing agriculture

• Featured on BBC Focus Africa, radios, newspapers,

• Connecting with young farmer in SA on Facebook Group, 850 members

Makolobane Farmers Enterprises, Senekal, RSA

Exploring the Agricultural Sector

Oklahoma State University Fellows, US

Professional Fellows Congress, DC

Makolobane’s Farmers Day with MEC of Agriculture FS

DAFF Minister and Deputy, Pta

TEDxWomen Speaker, Pta

Keynote Speaker at GCARD3

BBC Africa Focus

Presidential Youth Working Group, Pta

With Minister of Agriculture Rwanda& SACAU President, Durban

Opportunities in South Africa

Current issues:

• Unemployment rate as high as 25%, youth unemployment almost 40% - black population

being the most affected

• High poverty in rural areas

• Massive inequalities and huge disparity between the rich and poor (black population

dominant in the poor communities)

Solutions by the Government to fast track participation of black population in the

economy

National Development Plan• Aims to increase productivity in the country thereby increasing job opportunities

• Agriculture identified as one of the sectors can produce high level of new jobs

• Bias to develop women and youth

Black Economic Empowerment Policy• Forces established large businesses to score points if they help to development SME:

skills development, supplier chain inclusion, provide soft loan / grants, mentorships etc.

• In agriculture – his is directed at developing smallholder farmers to be integrated into the

supplier chain (Enterprise & Supplier Development)

• Higher points scored for developing black women and black youth (the most affected)

Opportunities in South Africa

Solutions by the Government to fast track participation of black population in the economy

(Focus on agriculture)

Land Reform and Land Claims Policy

• Aims to provide access to land to previously displaced and previously disadvantaged

communities

• Government buys up land (mostly farm land) and distributes to the black population

Resultant issues from land transfers

• Working farms transferred to unskilled black individuals and communities

• Poorly managed farms leading to wasted potential

• Inappropriate or insufficient farmer support for new farmers

• Large number of productive farms becoming vacant

• Large number of new farmers are incapable of participating in the sector meaningfully

My identified opportunity:

• Large number of youth who live on such farms, interested to remain and work on these

farms but have very limited access to farmer support

Understanding the Young Smallholder Farmer in SA

Needs Wants Attitude CapabilitiesIncome To be self reliant Eager to learn Limited skills

Basic services Successful Hopeful / Positive Hard working

Farmer support Help family Willing to accept help

Literate & tech savvy

Challenges Have access toAccess to skills Access to markets Arable land

(10 to +1000 ha)Water

Access to finance Collaborations Registered business Mobile Communication

Access to mechanization

Work vs Home Labour Internet

Connecting with Young Farmers

Objectives of the model• Identify commodity and relevant stakeholders with respect to commodity

• Create a programme centered around the commodity

• Create ecosystem around the commodity with stakeholders support to provide access to:

finance, market, training, shared capacity, mentorship and on-going support

• Identify young farmers to participate in the programme

• Ongoing monitoring of the programme

Linking Rural to Urban – Linking Young Farmers to Opportunities

GrowthShoot - Aggregator Model

GrowthShoot Partners for the Rabbit Farming Project

Access to Market (Export)

Access to Finance

Technical Skills

Business Support Services

Shared Inputs, Infrastructure

& Logistics costs

Access to Land

Exposure to Farmers

A.T. Kearney Management Consulting

Young Farmers Potato Planting Project

Access to Market (Export)

& Logistics

Finance & Insurance

Technical Skills & Mentorship

Business Support Services

Shared Inputs, & Logistics

costs

Infrastructure Equipment

Exposure to Farmers

Standard Bank – Young Farmers Support

Conclusion

- Established businesses have a major role to play

- Immediate intervention required for young farmers to

participate meaningfully

- Innovative ideas will most likely come from the youth – so

listen!

- Looking to partner up with Investors, established farmers and

agri-businesses

AFASA Youth, at AFGRI Head Office John Deere Head Office

AFASA NEC

Thank you