How businesses can help make hunger history

While emergency aid is vital, Irish companies must think strategically about their engagement with Africa if we are to solve the food crisis in the long term, argues Gorta’s Brian Hanratty

ACCORDING to World Bank reports, there was economic growth of 5% in sub-Saharan Africa in 2010 and this is a clear indicator that sustainable growth is now taking place in many African countries.

It is indisputable that international trade is one of the driving factors as African exports increased by 7.5% in 2010 and growth in domestic demand led to an overall increase of 9.1% in imports.

This puts the debate of how to systematically resolve poverty at the heart of the aid budget as Africans build trade with one another and the international community, leading to a substantial increase in business opportunities.

However, there are also huge challenges in terms of extreme hunger and poverty and ensuring the poorest of the poor are cared for.

The aim of the United Nations’ Millennium Development Goals (MDGs) is to encourage development by improving social and economic conditions in the world’s poorest countries. The eighth MDG (MDG 8) advocates a global partnership for development, involving the private sector.

The spirit of MDG 8 is to make available the benefits of new technologies throughout all sectors including agribusiness, in cooperation with the private sector.

Without the creation of industry, jobs and income leading to the generation of wealth, growth in Africa will remain polarised. While aid is very important in targeting the most vulnerable, to encourage business involvement is necessary and consistent with government policy.

In terms of private partnerships, Gorta has worked with Intel, Pinebridge Investments (AIG) and PM Group among others in different ways, focusing more on corporate responsibility engagement, an exchange of skills, time and resources and direct corporate fundraising. While corporate responsibility is still very important and indeed is still a good stepping stone into a deeper business engagement with Africa, there is a clear and growing need for investment in Africa.

This belief is in line with the recently-published document by the Department of Foreign Affairs and Trade ‘Ireland and Africa —Our Partnership with a Changing Continent’ which noted that many of the assumptions about the continent of Africa are being swept away, as Africa is now a continent of young people, rich in mineral wealth and economic potential.

Part of Gorta’s mission is to be a facilitator in channelling goodwill, resources and expertise to communities most in need. In doing so, it then develops and promotes models of pragmatic and effective best practice to be shared with individuals and groups with whom we work with in communities in sub-Saharan Africa.

Irish businesses need to think strategically about their engagement with Africa — it is not just about handing over money or responding financially to crises.

It’s about moving a nation out of the adversity of hunger and into sustainable farming methods, leading to an industry of agribusiness and ultimately a successful business model.

Here in Ireland we have a long, proud tradition of working in agriculture and building the sector from simply agribusinesses to successful international businesses.

Many Irish companies such as Kerry Group and Glanbia have made a sustainable contribution to international development and are easily identifiable as models of best practice. The business community can help us continue our work laying the basis for rural development opportunities in Africa.

Developing local and regional food markets in Africa is crucial for growing the agribusiness sector in Africa, but moving from a stagnant agriculture to a vibrant one cannot happen overnight.

While emergency aid is important, Gorta’s focus is on building resilience in the countries in which it works, while also increasing the capacity to trade for local communities. It is crucial that people are not only helped to farm their land, but are given the opportunity to build businesses, helping to create markets and systems that add value to their countries.

Our country is praised globally for its business acumen and boasts a huge number of successful multinationals, as well as exciting and innovative new SMEs. These companies have the skills and knowledge that many African companies need in order for them to progress to the stage where they can develop trade opportunities and create jobs.

Tying together the complex relationships with Africa will divide opinions, but Gorta needs to be at the forefront of the challenge to ‘make hunger history’ in the midst of our maturing relationship with the continent of Africa.

Established by the Department of Agriculture in 1965 at the request of the United Nations, Gorta empowers African communities to sustainably eradicate hunger and poverty.

Brian Hanratty is chief executive of Gorta