Sub-Saharan Africa may be the fastest-growing region in the world, but it also loses billions of dollars each year due to inefficiencies in food systems and trade.
It is estimated that 37% of the food produced in the region is lost before it even reaches the market , costing the economies approximately $92 billion annually . At the same time, regional air travel remains prohibitively expensive despite promises of reform, while major commodity producers seek to extract more value from their exports.
IFAD targets Africa's "first mile" to reduce food losses
To address agricultural inefficiencies, the International Fund for Agricultural Development (IFAD) is focusing on what it calls the "first mile" of the supply chain, that is, the critical step between smallholder farmers and formal markets.
Speaking to Business Africa, IFAD Vice President Gerardine Mukeshimana explained that the organization was aligning its investments with the priorities of Kampala's Comprehensive Africa Agriculture Development Programme (CAADP), with the aim of transforming subsistence farming into bankable agro-industrial enterprises.
The strategy includes improving rural infrastructure, strengthening agricultural cooperatives, expanding access to finance and reducing risks associated with agricultural investments in order to attract private capital.
According to IFAD, initial results show that blended finance models and public-private partnerships are helping to attract private investors to areas traditionally considered too risky. By reducing post-harvest losses, improving storage, and strengthening logistics, these projects increase farmers' incomes while building commercially viable value chains.
Can rural entrepreneurship absorb the influx of young people in Africa?
With the rapid growth of the youth population in Africa, the pressure to create sustainable jobs is intensifying.
IFAD believes that rural entrepreneurship – particularly in the agri-food, logistics, and digital services sectors – offers significant job creation potential. Its programs focus on skills training, access to credit, and integrating young entrepreneurs into structured value chains rather than informal markets.
Initiatives supported by IFAD demonstrate that youth-led agribusinesses generate incomes above subsistence levels, particularly when infrastructure and market access are simultaneously improved. However, scaling these models up across the continent remains a challenge, especially given budgetary constraints and declining external development aid.
The organization's 14th replenishment of resources aims to help governments maintain investment momentum by providing concessional financing and mobilizing additional private capital - a vital tool at a time when many African countries are facing rising debt service costs.
ECOWAS aviation reforms have not yet resulted in cheaper flights
In West Africa, leaders of the Economic Community of West African States (ECOWAS) have pledged to lower regional air fares after announcing in December significant reductions in aviation taxes, scheduled to be implemented in January 2026.
The reforms were designed to reduce one of the world's highest regional flight costs, which has long restricted trade, tourism and business mobility across the bloc.
However, nearly two months into the new year, passengers are reporting little change in ticket prices. Industry analysts point to slow regulatory harmonization, airline cost structures, and currency volatility as factors delaying tangible fare reductions.
From Abuja, correspondents report that while governments have expressed their political commitment, operational execution – including coordination between aviation authorities and carriers – remains uneven.
The question now is whether ECOWAS can translate political announcements into measurable cost reductions that improve regional connectivity.
Ghana moves up the cocoa value chain
At the same time, Ghana is taking steps to increase the value of its cocoa industry, a sector that has long relied on the export of raw beans.
The government plans to process up to half of its cocoa domestically - a move aimed at increasing export revenues, boosting local production and improving farmers' incomes.
Currently, most of the added value in chocolate production takes place outside of Africa, even though the continent produces the majority of the world's cocoa beans. By developing local processing capacity, Ghana hopes to increase its foreign exchange earnings while creating industrial jobs.
This strategy is part of a broader continental movement towards value creation and industrialization, thereby reducing dependence on raw material exports.
