Agribusiness Development in Africa

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Strengthening Capacity for Agribusiness Development and Management in

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Strengthening Capacity for Agribusiness

Development and Management in Sub-Saharan
Africa
Suresh Chandra Babu, Rupak Manvatkar & Shashidhara Kolavalli
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Strengthening Capacity for Agribusiness Development and Management in Sub-Saharan Africa,
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STRENGTHENING CAPACITY FOR AGRIBUSINESS

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DEVELOPMENT AND MANAGEMENT IN SUB-SAHARAN

AFRICA
Suresh Chandra Babua*, Rupak Manvatkarb and Shashidhara Kolavallic
a
Capacity Strengthening Program, International Food Policy Research Institute, Washington,
DC, USA; bWorld Food Programme, Rome, Italy; cGhana Strategy Support Program,
International Food Policy Research Institute, Accra, Ghana
In sub-Saharan Africa, agribusiness has a major role to play in the transformation

of the agricultural sector. The demand for high-value food products is increasing,
creating an opportunity for the production and export of these goods. To capture
the benefits of this trend and capitalize on this for long-term agricultural growth,
the capacity for agribusiness must be strengthened at all levels. To effectively
build the necessary capacities, the skills built by agribusiness education and
training must correspond to the needs of the agribusiness sector. This article
examines what capacities are needed for agribusiness development and
management in sub-Saharan Africa at the individual, organization, and policy
process levels. By reviewing the current agribusiness education offerings, this
article identifies capacity gaps that must be filled for agribusiness development
and wider agricultural transformation.
Keywords: agribusiness; capacity strengthening; agricultural transformation; sub-
Saharan Africa; institution building; agricultural education and training
INTRODUCTION
The increased interconnectedness of global food markets increases the need for sub-
Saharan African agribusinesses to become more competitive players on the national,
regional, and international markets (Konig, da Silva, and Mhlanga, 2013; Mabaya,
Christy, and Bandama, 2010). Creating a dynamic and competitive agribusiness
sector in sub-Saharan Africa requires building a wide range of capacities at all
levels. Agribusiness in the region is expected to grow at a faster rate than on-farm pro-
duction, particularly in the areas of food processing and distribution (Haggblade,
2011). Similarly, commercial demand for agricultural products has risen due to
increased household incomes, urbanization, and trade and retail markets have been
strong (Barrett, Bachke, Bellemare, Michelson, Narayanan, and Walker, 2012; Diao
and Hazell, 2004). Agribusiness activities contribute to an increasing share of national
income in many countries in sub-Saharan Africa.
In recent years, agriculture has received increased attention from national govern-
ments and international development partners (World Bank, 2013). Interest in agricul-
tural development should be spread beyond on-farm production to include all aspects
of the value chain, particularly for high-value commodities (Van Rooyen, 2014).
*Corresponding author. Email: S.Babu@cgiar.org

© 2015 Africa Academy of Management
2 Africa Journal of Management
Regional and national development leaders have recognized the need for an increased
focus on agribusiness development in order to reach development targets. The Com-
prehensive Africa Agriculture Development Programme (CAADP) highlights the
need for agribusiness development in order to drive economic growth through its
New Partnership for Africa’s Development (NEPAD) Agribusiness Strategy and Flag-
ship Programme. The NEPAD Agribusiness Strategy aims to develop robust agribusi-
nesses in order to create a dynamic agribusiness sector that promotes job creation and
value added in African agricultural production (CAADP, 2012).
Agribusiness impacts agricultural and economic development through both
upstream and downstream activities. The efficient distribution of agricultural inputs
such as improved seeds and fertilizer is essential for increasing farm-level production
and productivity. Therefore, the effectiveness of agribusinesses in sub-Saharan Africa
directly affects rural household incomes and in turn economic growth (Haggblade,
2011). Similarly, agribusinesses involved in the processing and marketing of agricul-
tural commodities add value, therefore impacting the profitability of agro-enterprises.
However, low technical capacity of agribusiness firms as well as the limited skills of
agribusiness managers and employees continue to inhibit the expansion of agribusi-
ness in sub-Saharan Africa (Konig et al., 2013).
Agricultural education and training programs in sub-Saharan Africa have focused
primarily on enhancing production and productivity to increase food security.
However, despite the recent growth in the agricultural sectors throughout the conti-
nent, current offerings to improve its management capacities are still at their
nascent stage. Major investments are required to build the capacity of local agribusi-
ness managers and firms so that they may effectively contribute to the sustainable
growth and development of the sub-Saharan African continent. Capacity building
for agribusiness development and management is a continuous process to develop
the capacity that enables agribusiness to support agricultural transformation and
overall economic development (Babu and Blom, 2014). This process requires assessing
capacity needs and contexts in order to address gaps so that the agribusiness industries
in sub-Saharan Africa can continuously learn from the challenges they face (Baser and
Morgan, 2008). Several capacity assessments have been conducted to examine
capacity at the individual, organizational, and system levels (Babu, Brempong,
Nwafor, and Edeh, 2014). A comprehensive assessment of the existing capacity and
the need for knowledge and skill enhancement of agribusiness managers and firms
is essential to identifying capacity gaps. However, a review of capacity needs and chal-
lenges is not adequately covered in the literature. This assessment will help to deter-
mine the appropriate content and targets of agribusiness education programs in
order to close the identified capacity gaps in agribusiness.
This article aims to provide a systematic understanding of capacity gaps and needs
that currently affect the development of agribusiness in sub-Saharan Africa. The
article also reviews approaches that have been taken to strengthen the capacity for
agribusiness development and management. The remainder of the article is organized
as follows. The next section provides an overview of the role of agribusiness in sub-
Saharan Africa’s agricultural transformation. The third section highlights specific
capacities needed in the individual, institutional, and policy process for agribusiness
management and development. This section also identifies critical targets for capacity
strengthening in order to effectively grow the agribusiness sector. The fourth section
reviews the literature to summarize key characteristics of effective agribusiness
Strengthening Capacity for Agribusiness 3
education and training programs. We then present select examples of programs that
could be scaled up to develop the capacity for agribusiness management and develop-
ment. In the fifth section, we identify three major strategies to improve the capacity for
agribusiness in sub-Saharan countries at all levels. Finally, the last section provides a
summary of findings and concluding remarks.
THE ROLE OF AGRIBUSINESS IN AFRICA’S AGRICULTURAL

TRANSFORMATION
The majority of the population of sub-Saharan Africa lives in rural areas where agri-
culture and agribusiness are the predominant sources of employment and income
(Yumkella, Kormawa, Roepstorff, and Hawkins, 2011). The agricultural sector in
sub-Saharan Africa contributes to more than one-third of national income in nearly
two-thirds of countries in the region (UNECA, 2014; Diao, Hazell, and Thurlow,
2010). Given the direct or indirect dependence of most rural households on agricul-
tural production, agricultural growth plays a key role in the continent’s overall econ-
omic development (Pauw and Thurlow, 2010; Diao et al., 2010). Therefore,
agricultural production and productivity are key to agricultural transformation
(Timmer, 2014). Effective market-driven transformation requires agribusinesses and
organizations involved in the production, marketing, and trade processes to become
more effective and efficient in order to adapt to and meet growing market demands
both internally and externally. As the agribusiness share of gross domestic product
continues to increase, productivity gains in agribusiness could be a powerful mechan-
ism to increase incomes for the large labor force involved in the many forms of agri-
business (Haggblade, 2011). Increasing agribusiness value added and employment
along the entire agribusiness value chain should be utilized as a strategy for agricul-
tural and overall development.
Agribusiness and agro-industry sectors have been attributed as the main drivers of
economic growth in countries including China and Brazil (UNECA, 2014). Despite
the efforts of many agricultural ministries in sub-Saharan Africa, the transformation
of the agricultural sector has been slower than expected. Agricultural transformation
depends on the transformation of smallholders from primarily subsistence to commer-
cialized agricultural production. Smallholders have the potential to become more
entrepreneurial and expand their enterprises into other nodes of the value chain if
properly supported by agribusiness institutions (Babu and Pinstrup-Andersen, 2009;
Ekboir, 2012). As a result, farmers must be able to work in an integrated and coordi-
nated manner with many players, including input suppliers, service providers, funding
agencies, and retailers (Van Rooyen, 2014). The linkages between agribusiness insti-
tutions and the value chains of agricultural commodities, especially those of higher
value crops, are weak. Agribusiness institutions in sub-Saharan Africa remain
focused on providing inputs for the production of staple crops, and few focus on
high-value agriculture (GIMPA, 2013). Focusing solely on agricultural production
will limit the ability of countries in sub-Saharan Africa to achieve developmental
goals. In order to promote inclusive growth and meet development goals, it is impor-
tant that the agribusiness value chain networks are accessible to smallholders. Success-
ful support of the agribusiness sector should include the development of downstream
(e.g. processing) and upstream (e.g. input supply) agribusiness activities.
The slow rate of transformation can be partially attributed to the less than ideal
environment for the development of agribusinesses as well as the limited incentives
and opportunities for farmers to get involved in the development of agricultural
value chains. Additionally, many farms in sub-Saharan Africa continue to operate
at a subsistence level and do not have the needed organizational or managerial
capacities to move from household food production to the production of high value
crops. Increased production of higher-value crops could enable smallholders to

become more competitive in both the domestic and global markets and increase
their incomes. The development of commercial agriculture as well as the support for
smallholders to enter productive value chains will help to drive agricultural transform-
ation (World Bank, 2013).
Without adequate capacity to effectively engage in several aspects of agricultural
innovation, transforming agriculture in sub-Saharan Africa will be a long, drawn out
process. The transformation of the agricultural sector will also require a different set of
skills in order for agribusiness institutions to adjust and expand. In order to become
competitive in the regional and international markets, agribusiness firms in sub-
Saharan Africa need sufficiently and appropriately trained human capital (World
Bank, 2013). The role of knowledge, skills, and capacity needed to establish and
grow small and medium agricultural enterprises remains relatively unexplored, and
is much less known at the farm level. The separation of enterprise and household
activities often becomes unclear, particularly under subsistence farming systems, as
there is no separation of labor or finances (Yumkella et al., 2011).
Agricultural transformation occurs when available knowledge is accessed, applied,
and aligned with action on the ground (Timmer, 2014). The transformation of the agri-
cultural sector requires innovation on the part of agricultural producers, agribusiness
managers, agribusiness institutions, and the policy process or system as a whole.
Figure 1 illustrates the role of agribusiness development in agricultural transform-
ation. Using the far left and far right columns we compare traditional and transformed
agriculture respectively in the context of agribusiness. In a traditional agricultural
sector, farmers (particularly smallholders) face a multitude of technological, insti-
tutional, and policy constraints that inhibit their participation in agribusiness activi-
ties. For example, the low levels of technology adoption inhibit farmers from
significantly increasing the productivity of their plots. In addition, subsistence produ-
cers struggle to access local markets. Innovations are required to transform the agri-
cultural sector and address the many challenges farmers in sub-Saharan Africa face.
The three types of innovations required include technological, institutional, and
policy innovations. In terms of policy innovations, agribusiness development in sub-
Saharan Africa will depend on an enabling policy environment. The growth of the
agribusiness sector will also require increased private sector investment, highlighting
the need for institutional innovations as well.
CAPACITY NEEDS FOR AGRIBUSINESS DEVELOPMENT IN SUB-

SAHARAN AFRICA
It is well recognized that transforming traditional agricultural sectors requires ade-
quate human capacity (Davis, Ekboir, Mekasha, Ochieng, Spielman, and Zerfu,
2007; Timmer, 2011). Under the CAADP process, capacity for agricultural and agri-
business development has been given a higher level of thrust through the country
Figure 1. A framework for the analysis of the agribusiness environment in sub-Saharan Africa
Source: Adapted from Konig, da Silva, and Mhlanga (2013); Mabaya, Christy, and Bandama
(2010).
investment plans (CAADP, 2008; FARA, 2011). However, a systematic understanding

of agribusiness capacity needs and challenges is not adequately covered in the
literature.
Figure 1. Continued
In this section we discuss the specific potential capacities required for technologi-
cal, institutional, and policy spheres to drive agribusiness development and manage-
ment in sub-Saharan Africa. Table 1 provides selective examples of the key targets
of capacity strengthening for agribusiness development and management through
postgraduate and executive programs. When identifying targets of agribusiness
capacity, it is important to expand targets beyond students to include mid-career train-
ings and short-term courses. Targets are identified at the individual, organizational,
and policy process (or system) levels. The interaction of the thematic capacity needs
and the levels at which they are needed helps to map a wide range of capacity strength-
ening challenges and opportunities.
Individual Capacities Required for Agribusiness Development and Management

The efficiency and effectiveness of an agribusiness is largely determined by the individ-
ual capacity of its managers and leaders. Individual capacities required for agribusi-
ness include technical, managerial, and entrepreneurial skills. Agribusinesses must
have the managerial capacity to recognize and capitalize on an opportunity to
expand their operations and have the ability to respond quickly to market shifts. In
order to do so, organizations must be able to efficiently manage their resources (e.g.
physical, financial, human capital). Yet it has been observed that agribusiness man-
agers in sub-Saharan Africa largely lack the individual capacity for expanding and
scaling up operations, highlighting a significant capacity gap. In order to become
Table 1. Potential targets for capacity development for agribusiness management
Individual Organization System/policy process
Technological capacity . Entrepreneurial/commercial . Aggregators . Technology scouters for varieties

needs farmers . Storage management . Scanners for processing technologies
. Entrepreneurs in value chains . Research . Market identifiers, developers/watchers
. . .

Agribusiness executives Processing industry Policymakers at national level
. Extension agents . Manufacturing industries . Agribusiness leaders at all levels
. Agricultural researchers . Cold storage . Research directors of value chains
. Agribusiness students development
Institutional capacity . Program leaders . NGOs . Value chain investors
needs . Project managers . CBOs . Contract lawyers
. Policymakers in agribusiness . FBOs . Ministers of agriculture, rural
subsector . Producer organizations/ cooperatives development, and allied sectors
. Policy implementers in . Agricultural university faculty post- . Agribusiness incubators
subsector level harvest institutions
. Monitoring and evaluation . Standard and food safety regulating
officers
. Ministry – agricultural policy
and planning
. Agricultural and marketing and
Policy capacity needs . Policymakers . Ministry of Agriculture . Connectors to venture capitalists
. Policy implementers . Allied Ministries . Connectors to foreign and domestic
. Government program managers . National extension institution investors
. Agricultural university leaders . National agriculture education . Agribusiness statisticians in national
. Agribusiness leaders in the institutions statistics office
policy process
Source: Authors’ compilation.
7
more entrepreneurial and increase the profitability of their enterprise, farmers need
access to a wider range of information and services (Sulaiman and van den Ban,
2003). Regardless of the size of the firm, access to and the application of information
and participation in markets is most often restricted by the illiteracy of the entrepre-
neurial managers (Yumkella et al. 2011). Rao (2012) highlights that in addition to
managerial and entrepreneurial skills, effective agribusiness managers should have
the capacity to engage and be effective in a rural setting.

Many agribusiness firms in Africa contract much of their production out to small-
holder farmers. This creates a great opportunity for private agribusinesses to improve
their farmers’ productive economic capacities as well as their linkages to inputs and
markets. Forming sustainable value chain links between smallholder farmers
and buyers requires strengthening the capacity of the producer organization (Poole
and Donovan, 2014). In Kenya, Hillside Green Growers and Exporters Ltd sources
a majority of its horticulture products through smallholder farmer groups. In addition
to providing smallholders with inputs such as seeds and chemicals, Hillside trains
farmers groups in governance and management in order to increase their organiz-
ational capacity. Contracted growers groups are also trained in technical areas such
as business development, land preparation methods, crop rotations, and methods to
reduce post-harvest losses (Mabaya and Cramer, 2014). By leveraging organizational
resources (e.g. human, social, natural, financial) as well as external resources (e.g. tech-
nical and financial inputs, market linkages), Hillside aimed to increase the organiz-
ational performance of its cooperative. Investing in the organizational capacity
of the cooperative improved the economic scale of Hillside and has supported its
growth.
Similar to the efforts of Hillside, Oromia Coffee Farmers Cooperative Union
(OCFCU) in Ethiopia has invested in the capacities of contracted farmers and their
communities by providing training, inputs, and credit (Meskela and Teshome,
2014). Cooperative members received training in quality control, updated production
techniques, and storage. In addition to building the capacity of individual farmers,
OCFCU has supported the development of beneficiary communities by investing in
infrastructure development such as roads, storage facilities, and irrigation.
Table 2 highlights the major capacities at the individual level to support agribusi-
ness development in sub-Saharan Africa. This article will discuss capacities that cut
across the three subsystems that make up the agribusiness system: technology/pro-
duction, markets and institutions, and policy. Individuals at all levels of the value
chain must have the technical capacity to apply modern technologies and practices
to streamline agribusiness processes and increase efficiency. Capacities needed at the
production level include those to collect and respond to market information as well
as the capacity to identify opportunity for growth on the local, regional, and global
markets. Increasing technical and entrepreneurial capacity will be especially important
to help smallholders expand their production to agro-enterprise. In the market system,
agribusiness institutions must be able to respond to price and market data. This
requires increasing the technical capacity of agribusiness managers. In order to
drive agribusiness development, research focus should shift to include managerial
and organizational research, which can inform and improve agribusiness practices.
Within the policy system, it is important for policy advisors to have cross-training
in agriculture, business, management, and finance. These skills will help to strengthen
the capacity of policymakers to conceptualize the potential for agribusiness
Table 2. Characteristics of individual capacity needed for agribusiness development and management
Type of subsystem
Individual-level skill Policy system Markets and institutions Technology/production system
1 – Capacity for market Data collection, data analysis, Price and market data and trends, Technical capacity for food
intelligence (e.g. information application of data to inform analysis of trends, capacity to production, availability and
gathering and synthesis) policies and programs respond to and predict trends application of modern inputs,

processing, distribution, capacity to
connect with players in the value
chain
2 – Capacity for conceptualizing Policy advisors and policymakers Ability to know the opportunities Awareness of potential opportunities
local, regional, and global with cross-training in agriculture, and constraints for agribusiness in for agribusiness on local, regional,
markets for potential agribusiness finance, management, processing, different markets and global markets
products and other related areas
3 – Capacity development for Capacity for economic and cost- Capacity for managerial and Technical and entrepreneurial
production, risk management, benefit analysis; Capacity for organizational research, research on capacity for agricultural production,
value addition, processing, strengthening connections between improved production and processing processing, and marketing at the
marketing, exporting actors in value chain methods, networking with other individual level
value chain actors
4 – Capacity for market Agribusiness marketing specialists Capacity to create information Technical capacity for marketing and
expansion, sales, advertising, design and implement new channels to efficiently choose advertising of agribusiness products
consumer relations strategies to expand agribusiness marketing strategies for agribusiness and services
products
5 – Capacity for agribusiness Policymakers and policy advisors Capacity of agribusiness institutions Technical capacity for complying
strategy/policy development and with training in management, to be responsive to new agricultural with standards and regulations
implementation including food impact evaluation, and project policies that impact agribusiness (e.g. impacting agribusiness products
safety and standards regulations monitoring, particularly in the area food safety standards, trade
of agribusiness and value chain regulations)
development
6 – Capacity for foreign/domestic Policymakers understand the Agribusiness managers seek to Agribusiness managers seek to
or public/private partnership and importance of foreign partnership enhance public–private partnerships enhance public–private partnerships
9
cooperation and cooperation to increase
agribusiness

development. Highly trained agribusiness policy advisors will also be better able to
design and implement national agribusiness strategies.
Organizational Capacities Required for Agribusiness Development and Management

There is growing interest from the international community in supporting value chain
linkages between smallholders and other market actors. Building the capacity of
farmers’ groups, such as cooperatives, can improve performance and strengthen
value chain linkages between these groups and international markets through the
development of agro-enterprises (Poole and Donovan, 2014).
The strengthening of value chains can speed up the process of agricultural trans-
formation in sub-Saharan Africa in several ways. First, the development of value
chains for high value commodities takes advantage of the growing demand for these
commodities. Increased demand is a result of increases in household incomes across
sub-Saharan Africa and subsequent changes in consumer demands and preferences
beyond staple food grains. Second, the increased external demand for processing
and exporting specific tropical fruits and vegetables and cut flowers has shown con-
siderable promise to a section of smallholder farmers who are able to take advantage
of such opportunities. Third, the growing agribusiness sector in sub-Saharan Africa is
also an opportunity for foreign direct investment which is needed to increase the com-
petitiveness of agricultural enterprises in sub-Saharan Africa. Finally, institutional
innovations in agribusinesses could bring about direct transformation benefits in
terms of growth and poverty reduction among the farmers participating in such activi-
ties (World Bank, 2009, 2013).
Institutional innovations are possible and needed throughout the agribusiness
value chains, including input supply, advisory services, output aggregation, proces-
sing, quality control, distribution, and marketing. Although isolated successes exist
throughout sub-Saharan Africa, progress in scaling up the benefits of agribusiness
development has been thwarted by several factors (World Bank, 2013; ACET,
2014). The conducive policy environment for attracting investments that is fundamen-
tal to the development of the agribusiness sector requires innovative institutional
arrangements (World Bank, 2009). In addition, the organizational and managerial
capacity to bring farmers, the private sector and the public sector together remains
low in several countries (Babu et al., 2014). In addition, the production technology
to move from subsistence farming systems towards high value agriculture remains a
challenge where the technical advisory services have deteriorated over the last two
decades. Farmers’ ability to adapt to the internal and external market structures con-
tinues to be limited, further reducing the competitiveness of smallholders on the global
markets (ACET, 2014; Groggin, Kopicki, Labaste, and Christie, 2003). Given the sub-
sistence nature of farming in sub-Saharan Africa, moving towards development of
agribusinesses requires increasing the entrepreneurial ability of the farmers (Yumkella
et al., 2011). In spite of the growing recognition of agribusiness as one of the key
drivers of agricultural transformation in sub-Saharan Africa, the linkage of farm-
level technological needs for promoting agribusiness to the agricultural innovation
system remains limited (Larsen, Kim, and Theus, 2009). Institutional innovations
are also necessary to improve horizontal and vertical coordination of specialized
value chains that have emerged in selected pockets of sub-Saharan Africa (Yumkella
et al., 2011).
Table 3 highlights the key capacities needed at the organization level in order to
drive transformation. Capacities are identified for agribusiness organizations within
each of the following three subsystems: technology/production, markets and insti-
tutions, and policy. At the production level, agribusiness institutions must have the
capacity to innovate along the value chain in order to enable farmer participation
and streamline processes. Agribusiness institutions must also have the capacity to
link together actors in the value chain in order to drive the development of the
sector. At the market level, agribusiness institutions must ensure that their strategies
are aligned with larger national agribusiness strategies. This requires the capacity to
deliver on agribusiness development objectives. In the policy system, agribusiness insti-
tutions must have the capacity to coordinate with key stakeholders and investors to
support agribusiness development.
The following three cases of agribusiness development or the lack thereof help to
illustrate the need to build institutional capacity to make agribusinesses in sub-
Saharan Africa more competitive on regional and global markets.
Kenyan horticulture. The development of the horticulture industry in Kenya is an

example of successful agribusiness development supported by foreign investment
(Leipold and Morgante, 2012). Increased horticultural production in Kenya has uti-
lized the abundance of natural resources, ideal climatic conditions, the relatively low
cost of skilled labor, and the existing infrastructure needed for export. Over the past
decade, horticultural exports to the Netherlands have increased significantly. It is esti-
mated that the horticultural subsector benefits roughly 60,000 people directly and
another two million through related supporting activities. Further, horticultural
exports have become a major foreign exchange earner for the agricultural sector in
Kenya. Yet, this agribusiness development has come under constant threat due to con-
straints derived from limited institutional capacity. The horticultural value chain may
become less competitive on the international market if the institutional capacity to
organize and develop the subsector is not strengthened. Additional institutional
capacity is also needed to circumvent several emerging challenges, including changing
consumer preferences, increased and stringent food safety regulations imposed by
international markets, and increasing wages of skilled labour. The ability of the
local industry to respond to these challenges has remained limited, furthering the
need for institutional innovation.
Mozambican poultry. Although the demand for high value commodities has
increased, many countries in sub-Saharan Africa have been unable to respond to emer-
ging opportunities for import substitution. Agribusiness institutions have the ability to
connect farmers to international markets and enable them to capture local demand for
high-value agricultural commodities. For example, urban food markets in Mozambi-
que are flooded with imported poultry meat from Brazil which in 2009 formed more
than 80% of poultry consumption in Mozambique (Apex-Brasil, 2011). The competi-
tiveness of poultry production in Mozambique is reduced by the low quality of local
poultry and the high costs of local production. Strengthening agribusiness institutions
involved in the poultry value chain will give access to smallholders who currently make
up 70% of the chicken producers in Mozambique. Increasing the organizational
capacity of local agribusiness institutions will mainstream this unorganized sector
into formal value chains (Nicolau, Borges, & Souza, 2011).
12
Table 3. Characteristics of organizational capacity needed for agribusiness development and management
Type of subsystem
Organizational
capabilities Policy system Markets and institutions Technology/production system
1 – Act and commit Policymakers are accountable to citizens Ability to act independently and Innovation along the value chain;
to take action and for the outcomes of according to evidence vertical links that support agribusiness
agriculture and agribusiness policies development, enable access to
smallholder farmers
2 – Deliver on

Policy priorities align with agriculture Agribusiness institutions’ goals align Resource and information sharing to
agribusiness and agribusiness policy agenda with national agriculture development support actors within agribusiness value
development goals and strategies chains
objectives
3 – Adapt and self- Continued capacity strengthening to Market and institutions have the capacity Making agribusiness organizations more
renew educate all relevant stakeholders for to respond to changes in consumer adaptable to global market changes,
informed decision-making in preferences/demand related food and price volatility, and events induced by
agribusiness development agricultural commodities longer-term events such as climate
change
4 – Relate to externalCapacity to link and coordinate various Capacity to connect external markets Capacity to assess technological needs to
stakeholders and players in policy system including non- and trade systems; capacity to connect ensure agribusiness products meet
markets traditional actors such as public, private, farmers with marketing organizations in quality standards and food safety
CSOs, and development partners who domestic and international markets standards
have interest in development of
agribusiness
5 – Achieve coherence Feedback channels for different Marketing systems that are transparent Capacity to organize technologies in the
stakeholders, with a focus on facilitating and share data on food prices in a production and farming systems to
participation of vulnerable populations; coordinated manner; institutional achieve agribusiness development goals;
capacity for resources mobilization coherence for market regulations coherence at community, local, and
national levels

Ghanaian vegetables. Foreign investors such as Dole and Del Monte have been
active in the development of the pineapple industry in Ghana over the last 20 years.
The demand for other fruits and vegetables has also increased, but foreign investment
and technical assistance have not been effectively translated into the production and
marketing for these commodities. As a result, a majority of the vegetables consumed
in Ghana continues to be imported from Europe. Ghana imported 398,000 tonnes of
vegetables in 2011 (FAO, 2014). In addition, Ghana imports oranges, onions, toma-
toes, garlic, and cabbage from a variety of countries, limiting the country’s foreign
exchange. In order to become self-sufficient in the production of vegetables, the
capacity to organize and develop specialized value chains must be strengthened
within agribusiness institutions. Strengthening this capacity will help Ghana take
advantage of the opportunity to export fruits and vegetables while meeting increased
domestic demand.
The above agribusiness market examples illustrate that in order for agribusiness to
support agricultural transformation in sub-Saharan Africa and drive economic
growth, serious efforts are needed to build capacity at all levels (Babu, 2015b).
Given the growth of agribusiness opportunities and sub-Saharan Africa’s proximity
to Europe and the Middle East, there is a need to strengthen local institutional and
individual capacity for agribusiness development and management (Quandzie, 2013;
GIMPA, 2013).
Policy Capacity for Agribusiness Development

A number of capacities are needed at the system level to effectively design and
implement policies and programs that support agricultural and agribusiness develop-
ment in sub-Saharan Africa (Babu, 2015a). Table 4 highlights the key capacities
needed at the policy process level in order to drive transformation. Capacities are
identified for agribusiness organizations within each of the following three subsystems:
technology/production, markets and institutions, and policy. The policy process must
have the capacity to identify agribusiness development issues and opportunities. At the
production level, the system should strengthen the linkages and ease the flow of infor-
mation between agricultural researchers, extensionists, and producers. At the market
level, the agribusiness system should strengthen and promote coordination between
public and private research institutions to support innovation. Within the policy
system, participatory processes should be in place to encourage stakeholder partici-
pation and investment.
It can be argued that the overall poor performance of the agribusiness sector in
Africa can be partially attributed to limited capacity among agribusiness institutions
and individuals working in the sector. It is important to note, however, that increased
performance of the agribusiness sector creates a demand for relevant capacity building
activities. This creates dual causality between the supply of agribusiness management
capacity and the demand for such capacities.
In this section we have reviewed the specific capacities needed to grow agribusiness
in sub-Saharan Africa at the individual, organization, and policy process levels.
Through this review we have identified the specific targets of capacity strengthening
in order to have the greatest impact on agribusiness development and management.
Now that we have highlighted the major capacities needed, it is important to under-
stand what changes need to be made to agribusiness education in order to fill these
14
Table 4. Characteristics of system/policy process capacity for agribusiness development and management
Type of organization
Stage of policy
process Policy system Markets and institutions Technology/production system
1 – Challenge/ Communication channels or forums Capacity to identify market and Strengthen connections between farmers,
opportunity between farmers, value chain leaders, and institutional challenges affecting researchers, and extensionists to improve
identification policymakers; capacity to identify agribusiness development flow of information
agribusiness challenges and opportunities
2 – Research Functional network of public, private, and Strengthen coordination between public Strong interdisciplinary research

NGO research that generates relevant and private research institutions to connections (e.g. agricultural economics
evidence to inform agribusiness support innovations in agribusiness research, business management research,
practices and technologies value chain research, production
research); increased research focus on
managerial and operational research
3 – Strategy Participatory processes that encourage Transparency in the agribusiness strategy Stakeholders from all along value chain
development stakeholder and public participation in development process; policy process is are consulted including industry experts
the formation of new agribusiness informed by relevant evidence
strategies
4 – Implementation Strong management capacity and Capacity for implementation of market Capable and adaptable private sector and
effective channels between administrative and institutional policy changes NGOs that have the capacity to
levels implement programs to support value
chain linkages
5 – Monitoring and M&E data on policy outputs and Data collection systems collect data both M&E of production process, from farmer
evaluation outcomes is integrated with national to predict and monitor shocks or threats to consumer is integrated into the
statistical collection system; evaluation is and capacity for assessment of impact of agricultural research system
a mandatory component of policymaking policy implementation
6 – Strategy revision Sufficient decentralization of power to Dictated by data from the monitoring Capacity to develop policy strategy
ensure strategies can be immediately systems the capacity for analysis and revisions based on the impacts of policies
adapted or revised as needed to fit local development of marketing and on agribusiness competitiveness
contexts institutional strategies

capacity gaps. The next section highlights important gaps in the offerings of agribusi-
ness programs in sub-Saharan Africa and suggests measures that could be taken to
enhance the quality of agribusiness graduates and their ability to manage and
develop agribusinesses.
THE CURRENT STATE OF AGRIBUSINESS EDUCATION AND TRAINING

IN SUB-SAHARAN AFRICA
The traditional model of capacity building for agribusiness has been to augment agri-
cultural training with graduate-level business management training, such as a Master
in Business Administration (MBA). We recognize the contribution of regular BSc
Agriculture programs teaching agribusiness as an option or area of specialization.
However, we wish to go beyond this specialization and make agribusiness an explicit
program to be developed in its own right as the demand for agribusiness professionals
is likely to increase. For this reason, we would like to ensure the quality of agribusiness
programs and graduates.
There is a serious need to increase the technical, managerial, and entrepreneurial
skills of agribusiness graduates by improving the quality of agribusiness education pro-
grams (Mabaya et al., 2010). The content of traditional courses offered through agri-
cultural universities continues to focus primarily on curriculum related to production
(Maguire, 2000). In addition to policy and institutional reforms toward improving
agribusiness education, there is a dire need for a paradigm shift from agriculture to
agribusiness education to meet the needs of agribusiness firms (Mabaya et al.,
2010). Traditional agricultural education has focused on basic research to increase tra-
ditional agricultural production. The production-oriented approach to agricultural
instruction should shift to become more market-oriented. In addition, agribusiness
graduates should be prepared for careers in the marketplace in addition to federal min-
istry positions. Developing the human capital demanded on the agribusiness market
requires a combination of both academic technical as well as practical applied train-
ing. Hence, new training models and frameworks by non-governmental organizations
(NGOs) are needed in addition to traditional educational institutions such as univer-
sities and colleges.
Table 5 highlights the salient features of successful agribusiness education and
training programs as identified by the literature. For this review, we review the key
findings of five major papers. Across the board, all papers emphasized the importance
of building the capacity of graduates in areas that match the needs of the agribusiness
market. In order to do so, education institutions/departments should be responsive to
the ever-changing agribusiness environment. The authors make the distinction
between “hard” and “soft” skills, stressing that both are critical for the capacity to
develop and manage an agribusiness. Hard skills include those technical skills of agri-
cultural production, processing, and marketing. Agribusiness graduates should also
have a strong foundation in economics, finance, and agricultural science. To comp-
lement the technical skills, agribusiness programs should strengthen managerial and
entrepreneurial capacity as well. Soft skills required in the agribusiness market
include negotiation and an understanding of global agriculture and trade issues (De
Lange and Van Rooyen, 2002). Agribusiness graduates also need soft skills such as lea-
dership, communication, facilitation, organizational capabilities, and the ability to
learn and adapt quickly (Eicher, 2012; Mabaya et al., 2010). It is well recognized by
16
Table 5. Characteristics of agribusiness educational needs in sub-Saharan Africa
Practical training/industry “Hard skills”/“soft

Authors Relevance/context Methods and/approach Quality vs. quantity experience skills”
De Lange and . As agriculture becomes . Case study approach . Female enrollment . Industry exposure . Computer literacy
Van Rooyen more globalized, . Economic, financial emphasized . Use a case study . Negotiation
(2002) education programs base approach to analyze . Management
should be responsive to current problems in the . Foundation in
market needs sector economics and

. Program should finance
sufficiently prepare . Understanding of
graduates global trade issues
. Match skills to
marketplace
Mabaya, . Agriculture becoming . Shift from . Expand targets of . Expand providers of . Program must include
Christy, and more industrialized, government- agribusiness agribusiness education courses that prepare
Bandama which requires that mandated approach education to include beyond public students for basic
(2010) graduates have an to market-driven students, farmers, institutions, to include management and
adapted set of skills approach SMEs, agribusiness businesses and NGOs problem solving
. Shift focus from basic . Course offerings and managers (e.g. executive training . Leadership,
research to applied content are not . Paradigm shift to programs) communication, and
research comprehensive focus on training . Increase engagement of administrative skills
. Shift in the demand for . Students should have well-rounded private sector . Ability to learn and
agricultural graduates understanding of professionals . “Soft skills” should be adapt quickly
from government to global context of . Market-oriented developed through . Technical capacity for
private sector and agriculture approach to training linkages between the risk management
NGOs . Executive training instead of industry and academic . Financial literacy
. Agribusiness education for agribusiness government-driven institutions
and training programs managers should be . Short courses provided
should be responsive to expanded by private sector and
the changing . Specialized courses NGOs for non-
environment and needs offered by NGOs traditional students
of society (e.g. organic farming,
agroforestry)
Eicher and . Building institutional . Strengthening . Shift from teaching . Life-long learning . Negotiation
Haggblade capacity is critical for linkages between focus to learning capacity (mid-career and . Organizational
(2013); Eicher agricultural and rural agribusiness focus in-service training capabilities
(2012) development education and . Increased use of courses) . Facilitation
. Lack of political and research (e.g. ICTs to improve . Supervised and organized . Ability to provide
financial support for organizational quality of teachers, student attachments feedback to
agricultural education research) graduates, researchers and
. Ministerial separation . Curriculum must be educational investors
(between agriculture updated and current materials, and

and education) makes with stakeholder and administration
coordination of efforts market needs
difficult . Must be strongly
. Capacity to implement linked to national
and monitor projects research institutes so
(midcareer/in-service that curriculum
training courses, of remains relevant
particular importance
in agricultural
ministries)
Larsen, Kim, . Curriculum and . Too focused on . Greater quality . Need to create . Entrepreneurial
and Theus programs should be theoretical training . Student diversity institutionalized system values
(2009) responsive as rather than practical should be to fund internships and . Managerial skills
agriculture becomes encouraged practical experience for . Ability to be
more industrial . Expand training students innovative and
beyond the responsive on the
classroom for regional and global
enterprise managers markets
and extensionsists . Ability to promote
agricultural value
chains
. Marketing and
distribution of
17
agricultural products
(Continued)
18
Table 5. Continued.
Practical training/industry “Hard skills”/“soft

Authors Relevance/context Methods and/approach Quality vs. quantity experience skills”
Maguire . Ag and non-ag . Need to change . Failure to attract . Curriculum is too . Poor practical skills
(2000) dichotomy curriculum to best quality students focused on theoretical . Need to increase

. Limited connection incorporate wider . Decreased funding training agricultural
with vocational schools problems of rural . Lack of communication/ graduates’ ability to
. Irrelevant curriculum development connection with work in social aspects
. Shift in focus from . Inbreeding – employers of rural development
agriculture to rural teaching and . Entrepreneurial skills
development calls for a research staff are should be developed for
change in curriculum from same university academic and non-
. Weak connection with (excluding new ideas) degree/adult education
other parts of . Increasing content of programs
agricultural education information . Must match the demand
. Decreased funding technology training for those with
coupled with higher to make graduates intermediate training (e.g.
student intakes more relevant field and lab technicians,
. Combination of entrepreneurs)
theoretical and
practical skills
development
Sources: De Lange and Van Rooyen (2002); Eicher and Haggblade (2013); Larsen, Kim, and Theus (2009); Mabaya, Christy, and Bandama (2010); Maguire (2000).
the literature that practical training and industry experience are invaluable to agribu-
siness students. There is a critical need to institutionalize and internships and industry
exposure as required as part of the agribusiness curriculum (Larsen et al., 2009). De
Lange and Van Rooyen (2002) highlight that effective agribusiness programs
provide more practical training and exposure for students to prepare them for a
career in agribusiness. Many programs also apply a case study approach that
focuses on contextualized application of skills. Agribusiness programs should ensure

that graduates have a strong foundation in economics and finance in order to effec-
tively increase the efficiency of their future employers.
Agribusiness Education Challenges

Significant human capital development is required in order to meet the needs of the
agribusiness market. However, agribusiness programs in public institutions continue
to face a number of challenges. Courses in agribusiness need to be reflective of industry
interests. Therefore, the agribusiness curriculum offered must be reformed in order to
match the skills demanded by agribusiness firms. Reforms should include improved
instruction and training materials. Agribusiness curricula should be integrated into
other related academic departments. Across many public institutions, there is a lack
of funding for agribusiness courses and a shortage of staff. Increased focus from
both policymakers and the private sector may be one opportunity to increase financial
support for agribusiness departments. New curricula developed must be industry-rel-
evant in order to add value to the graduate. This will require matching skills taught
with the skills that are needed in the agribusiness industry.
Currently, the lack of interactions and partnership between university and industry
has led to many agribusiness curricula being irrelevant. Without a link between edu-
cational institutions and industry, large gaps between demand and supply of skills will
remain. The lack of such coordination explains precisely why agribusinesses often find
current university graduates lacking. Agribusiness firms look for theoretical as well as
practical skills in order to continue their business operations and in absence of the
latter, relative efficiency and productivity of labor significantly decline. Practical train-
ing helps to cater to a firm’s long-term vision and planning as well as to develop soft-
skills which cannot be acquired in academic environments.
Financing practical training and internships is yet another challenge facing stu-
dents. Incentives and support systems to connect students with private companies
for internships and training programs must be fortified in order to strengthen edu-
cation and private sector linkages. Even fewer programs are in place for upgrading
existing workers’ skills such as seminars, training programs, and skills courses.
A World Bank Study (Larsen et al., 2009) surveyed educational systems and agri-
business firms across Ghana, Tanzania, and Uganda to see whether the skills
demanded by industry matched those supplied by the education system. In Ghana,
agribusinesses in the country reported a preference for hiring graduates from polytech-
nics over general university graduates due to their expertise and technical training,
despite the fact that they are trained less to perform managerial functions. According
to the study, agribusinesses are rather dissatisfied with the quality of graduates coming
from the tertiary educational institutes across Ghana. In some instances, agribusi-
nesses also help form training and research policies for institutions. For example,
the Council of Scientific and Research Institutes (CSIR) was involved in training
managing directors of agribusinesses in subjects such as curriculum preparation and

governance.
Similarly, agribusiness firms in Tanzania reported that university graduates lacked
the practical skills needed to perform optimally. This could be attributed to lack of
practical training across educational institutions compared to the number and needs
of students. As such, the quality of graduates from universities (focusing more on
theoretical training) was significantly different from those that completed training in
polytechnics and technical colleges (focusing on practical training). Universal
primary education was introduced in Uganda only in the late 1990s and secondary
education even more recently. As such, educational policies take another generation
to have the intended impact on the ground. As a result of low education levels,
farmers are limited in their capacity to adopt existing technologies and management
practices to benefit their agricultural practices. Use of information and communi-
cations technologies (ICT) is also further restricted due to limited technical literacy.
Lower education levels also inhibit compliance with international agricultural stan-
dards for export as well as practices such as accounting, record keeping, and due dili-
gence. This undermines the quality and dependability of agribusinesses on the market.
As a result, Uganda is unable to compete with other nations and ends up lagging
behind in poverty alleviation and economic development.
The above country examples illustrate the common challenges faced by agribusi-
ness in sub-Saharan Africa and the importance of strengthening linkages between aca-
demic institutions and agribusiness. A country’s strategy for agricultural development
cannot be fulfilled unless there is substantial investment in its educational system. In
addition, there must also be a complementary investment from the government to
support agribusiness endeavors and market development.
In order to illustrate the current offerings of public institutions, Table 6 compares
select agribusiness programs in sub-Saharan Africa to those in the United States
(US) and Europe based on several components, including the programs’ approach,
relevance, practicum, and research. Based on the curriculum descriptions, agribusi-
ness programs require basic courses in agricultural economics and statistics.
However, the European program does not require any financial management
courses. The South African program requires courses in financial, marketing, and
supply chain management, all of which are highly relevant skills for an agribusiness
employer. In addition, the South African program was the only one that required
computer literacy training. However, the program does not require an internship
or field assignment. The US agribusiness undergraduate program is highly relevant
to a specific commodity based on the requirement that students specialize in an agri-
cultural science. In addition, students are required to complete a semester-long
internship with a private agribusiness firm or in an agricultural policy institution.
This adds both relevance and value to the degree program. The Kenyan program
requires its graduate students to complete both independent research and a seme-
ster-long field/industry attachment. However, this program does not require any
financial or management courses. The Ghanaian undergraduate program is the
only one of the selected programs which requires students to take a class in entrepre-
neurship. In addition, this program builds students’ entrepreneurship capacity by
requiring them to grow a crop and develop a farm budget and business plan. In
addition, students are required to complete an attachment to a commercial farm
or agribusiness during the summer break. In terms of program requirements, the
Table 6. Comparison of selected public agribusiness programs
Agribusiness American Program European Program Kenyan Program South African Program Ghanaian Program
curriculum Texas A&M University Gottingen University Egerton University Stellenbosch University Valley View University
Degree BSc Agribusiness MSc International BSc Agribusiness BAgric.Admin. – Bachelor’s BSc in Agriculture with
offered Agribusiness and Rural Management Program in Agricultural specialization in
Development Economics and Agricultural Economics and
Management Agribusiness
Relevance . Commodity relevance . Market relevance through . Strong relevance to . Highly relevant skills in . Builds entrepreneurship
through a specialized value chain and markets through finance and management, through summer program

requirement in an management courses field attachment, however lacks commodity which requires students to
agricultural science . Limited instruction of provides hands-on or value chain relevance grow a crop and develop a
. Policy and market relevant financial skills experience in the . Lack of entrepreneurship corresponding farm
relevance through courses market place relevance budget and business plan
and required internship . Limited . Management relevance
entrepreneurial or through required field
management attachment in third year
relevance
Approach . Required courses include . Required courses include . Courses offered . Required courses include . Curriculum includes
financial and managerial agricultural trade, include accounting, agricultural economics, agricultural science,
accounting, agricultural statistics, agricultural statistics, financial management, statistics, agribusiness
economics, policy, rural cooperative, marketing management, management, finance,
macroeconomics, development, supply marketing and supply chain entrepreneurship,
statistics, business finance, chain management, and policy, economics management, crop financial management,
and operations agribusiness management production, and trade
management computer skills
Practicum . Students are required to . Excursions to enterprises, . Students are . No internship or field . Summer assignment
complete an internship governmental and required to assignment required includes attachment to
through an industry or nongovernmental complete an commercial farm or
policy program organizations industrial/field agribusiness
attachment
Research . Undergraduate applied . Field research required to . Undergraduate . Undergraduate research . Conduct dissertation on
research strongly complete thesis students complete a is encouraged in the business plan and
encouraged final research agricultural sciences but feasibility of agro-
21
project in order to not required enterprise of their choice
graduate

Ghanaian program looks to be the most relevant to the needs of the agribusiness
market.
Examples for Scale Up

Translating national agricultural strategies into development outcomes requires
capacity at all levels (Juma, 2011). In this section we discuss a few select programs
across the region that provide essential training and skill development courses in agri-
business. The select programs below have the potential for replication and scale up in
other countries, and are examples of the various approaches that can be used to
prepare young Africans for careers in agribusiness.
There are many examples of successful agribusiness education and training pro-
grams in sub-Saharan Africa. Many of the more prominent examples take a Center
for Excellence approach. The African Center for Crop Improvement (ACCI)
through the University of KwaZulu-Natal in South Africa works with national
research institutions in the eastern and southern Africa region to bring in young
researchers to work with experienced plant breeders towards obtaining a PhD
degree. The program was formed in response to an increasing demand for high-
quality plant breeders. The program is supported by funding from Alliance for
Green Revolution in Africa (AGRA). The ACCI currently trains plant breeders
from 10 countries including South Africa, Mozambique, Malawi, Zambia, Tanzania,
Uganda, Kenya, Ethiopia, and Rwanda. There are other similar PhD programs in
breeding such as the one run by RUFORUM and the MS level programs in Makerere
(Uganda), Sokoine (Tanzania), and Eduardo Mondlane (Mozambique). A similar
program focused on specialized agricultural processing or marketing could be an effec-
tive approach to building technical capacity in those areas of agribusiness. Locally
designed and context-specific agribusiness programs such as ACCI have the potential
to reduce the brain drain from African countries while simultaneously addressing
current research challenges (Babu, 2015b).
The Collaborative Master’s Program in Agriculture and Applied Economics
(CMAAE) is a network of 16 faculties of agricultural economics and agribusiness in
eastern, central, and southern Africa. This network was created to strengthen the
capacity for agricultural economics and policy analysis. Since 2010, CMAAE has
been run by African Economic Research Consortium (AERC), a network of
African universities and research organizations conducting economic research and
analysis. The program utilizes the specialized capacities of the regional universities
to study a particular subject area and encourage collaboration. Driven by demand
from regional stakeholders this program combines the local capacity of educators
who share the training facilities for developing the analytical capacity of young and
mid-career professionals. An institutional innovation, the CMAAE program
mobilizes local talent for building regional capacities while also strengthening the
capacity of local faculties (Babu, 2015b). As an approach focused on a single disci-
pline, the CMAAE program was able to populate the profession in a short period
of time.
The Africa LEAD Agribusiness Leadership Program aims to facilitate the com-
mercialization of agricultural production and value addition in Africa (USAID,
2011). Participants are required to be mid- to senior-level staff so that they may
apply what they learn to improve the production and marketing efficiencies of their
own institutions. The program combines on-the-job-training, classroom instruction,

and assignments within host companies in sub-Saharan Africa. Host assignments
can be in a number of areas of agribusiness, including marketing, financing,
trading, and logistics. This model exposes participants to the many opportunities of
agribusiness. Funded by the US Agency for International Development (USAID)
and CAADP, the agribusiness leadership program highlights the importance of agri-
business development in policy dialogue. By training candidates who are already

employed by African agribusiness firms, the program encourages private sector par-
ticipation in the development of the agribusiness sector. Figure 2 highlights an
example of the opportunity to utilize partnerships between different types of insti-
tutions (e.g. research and education) to develop the capacity for agribusiness manage-
ment in sub-Saharan Africa. The GIMPA-IFPRI program described is a model of
short-term courses for mid-career agribusiness managers that could be scaled up in
other countries of sub-Saharan Africa or across another skill set relevant to agribusi-
ness such as processing or marketing.
In addition to public education and research institutions, private sector institutions
have an important role to play in developing the capacities needed for agribusiness
development in sub-Saharan Africa. Figure 3 highlights an example of a private agri-
business firm’s investment in capacity. The example of Chimitex Cosmetics in Mali
Figure 2. An integrated agribusiness management program – The GIMPA-IFPRI partnership

in Ghana
Source: Based on IFPRI (2013).
Figure 3. Mentoring women in agriculture – The case of Chimitex in Mali

Source: Adapted from UNIDO (2014).
illustrates the opportunity for private companies to invest in agribusiness capacity

development, particularly for women.
This section has reviewed the current state of agribusiness education in sub-
Saharan Africa. Through this review, we have identified the current challenges and
capacity gaps left by the current educational offerings. This section has also high-
lighted several examples of successful programs that could be scaled up in other
countries or areas of agribusiness. The next section provides three specific strategies
to build the agribusiness management and development capacities required by the
sector in sub-Saharan Africa.
CAPACITY STRATEGIES TO MATCH AGRIBUSINESS MARKET NEEDS

Specific strategies for developing agribusiness in sub-Saharan Africa would vary
depending on the context and the local state of the countries’ development in terms
of agribusiness. This section identifies three broad strategies to improve the agribusi-
ness environment in sub-Saharan Africa in order to overcome institutional challenges.
These strategies include the development of integrated agribusiness systems, develop-
ing public–private partnerships, and empowering women to become more involved in
the agribusiness sector.
Developing Integrated/Holistic Education and Capacity Development in Agribusiness

A substantial agribusiness capacity development program must be created in order to
take advantage of the abundant human and natural resources available across sub-
Saharan Africa.
An integrated agribusiness capacity development framework should scale up suc-
cessful existing resources and infrastructure in different regions of sub-Saharan Africa.
Where such resources are absent, new ones must be established on the lines of success-
ful institutions. In addition, exchange programs to neighboring states can help
leverage availability of agribusiness education as well as fulfil market demand for such
capacity. The primary objectives of an integrated capacity development framework
would be:
. To address the human capital needs of agribusiness including inputs, services,

production, processing, distribution and retail by developing a cohesive and
integrated framework of training based on industry needs.

. To increase the employability of agribusiness graduates and the effectiveness of
mid-career agribusiness managers.
. To ensure that the programs are designed in a way that they address current
capacity needs, but are flexible enough to adapt to the ever-changing agribusi-
ness environment.
. To create a network of agribusiness capacity development leaders at the local,
national, and regional levels.
. To ensure training in relevant technologies to increase the efficiency and profit-
ability of agribusiness ventures.
Such an integrated capacity development program should be monitored and eval-

uated on a regular basis in order to ensure the relevance and quality of its content and
methods. The program should incorporate the current needs of the sector to ensure
transparency, lucidity, as well as relevance – factors which are lacking in the existing
agribusiness education and training system.
Developing Public–Private Partnerships

For effective agribusiness strategy implementation on the ground, public–private part-
nerships are most important for developing the capacity for entrepreneurship and
management. Such collaborations will help agribusiness to support the growth of agri-
cultural research, employment generation, value chain development, quality, technol-
ogy, marketing, and management as well as solving problems incrementally, i.e.
iterations over time. These strategies will help to improve profits and enable agribusi-
nesses to be more competitive in the local, regional, and international markets.
There needs to be greater interaction between the public and private sectors in the
area of standards and quality management. Limited coordination between public and
private institutions has led to inefficiency and duplications in efforts, particularly in the
areas of agricultural research and extension (Larsen et al., 2009). Due to this, the
private sector tends to self-regulate in export value chains in order to remain on a
par with international market standards. This is an important area of education and
training which can not only help the private sector maintain quality and enable com-
petitiveness in international trade but generate employment opportunities. For
example, an existing link in the cocoa industry in Ghana where farmers and agribusi-
nesses are assisted by COCOBOD (Ghana Cocoa Board) on quality control measures,
agronomic practices such as yield optimization, disease control, and maintenance of
high-quality seeds (Essegbey, 2009). The involvement of the private sector to
provide technical expertise and managerial experience to smaller agribusiness firms
is an important example of horizontal integration. Such interactions promote
robust policies, effective implementation, and efficient resource mobilization for
investment in infrastructure and services.
A continuous link needs to be established between the private sector and National
Agricultural Research Institutes (NARIs). Such interactions are insufficient in these
countries or limited at best which impedes knowledge transfer, product development,
and introduction of new technologies. Such gaps also lead to a substantial disconnect
between priorities in research versus market needs which hurts all actors involved. As a
result, production, resource allocation and managerial efficiency remain sub-par. Such
a lack of collaboration can be attributed to the inability to effectively implement pol-

icies as a result of the shortage of resources as well as knowledge.
Empowering and Training Women in Agribusiness

Agriculture across sub-Saharan Africa is dominated by women. According to the
FAO, two thirds of women in sub-Saharan Africa are employed in the agricultural
sector and produce over 90% of food on the continent, comprising some of the
highest rates of labor participation and entrepreneurial ability in the world. Their
involvement is not only relegated to production activities but also the sale, purchase,
and preparation of food for the household. However, despite such important roles
played, they face several daunting challenges, such as minimal control over access
to resources, inputs, credit, and technology. They are also characterized by low literacy
levels and malnutrition, especially new mothers. As a result, women are restricted in
their access to agricultural markets and agribusiness opportunities. The following
strategies could help improve the capacities of women and increase their participation
in agribusiness activities.
It is critical that agribusiness education and training programs be re-designed in
order to effectively develop women’s agribusiness development and management
capacity. It is important for the existing educational framework to be redesigned to
address the specific challenges faced by women in agriculture and agribusiness. A
two pronged approach is essential for this revision. Significant efforts should be
made to strengthen women’s capacity for agricultural production, processing, market-
ing, and business management. Formal academic education should be combined with
short-term courses which could be offered by a variety of institutions (such as those
established by UNIDO and French cosmetic giant Chimitex in Mali). Tailoring agri-
business education and training programs to the capacity needs of women will in turn
make them more productive in the agribusiness market. Women often do not have
access to useful information on issues such as access to technologies, rural credit, train-
ing materials, as well as access to inputs such as fertilizers, seeds, etc. This in turn limits
the capacity of women to participate in agribusiness activities and expand their agro-
enterprises. Significant measures must be taken to set up information centers and easy
access must be provided to rural credit facilities to ensure increased access to agribusi-
ness inputs and information for women. Such information centers could also prove
instrumental in collecting information and statistics related to women in agriculture.
Increasing access would enable women to participate and invest in agribusiness
value chains and ensure economic stability.
In addition to national-level policy formulation, local programs should be put in
place to strengthen the role of women in agribusiness development initiatives.
Capacity development opportunities could be enhanced by encouraging rural
women to form/join agribusiness organizations. Local women-to-women knowledge
sharing on models of success in agribusiness development and management as well
as networking with women at the village level can help build local capacity. It is also
very important to foster effective mentoring relationships to promote and encourage
women. Mentors could be teachers from schools and colleges, other successful
women in agriculture, or educated women returning from abroad. Other initiatives
could include strengthening cooperative relationships between the national govern-
ment, rural women farmers, as well as networks in the agriculture and rural develop-
ment sector.
The three strategies highlighted above illustrate the importance of matching agri-
business education and training to meet the capacities and skills required in the
market. An integrated approach to capacity strengthening will ensure that agribusi-
ness graduates are prepared with the wide range of skills required for agribusiness
management and development. Strengthening public–private partnerships could be
an effective approach to help agribusiness value chains in sub-Saharan Africa
become more competitive. Finally, the importance of empowering women and facili-
tating their participation in growing agribusiness cannot be overstated. The unique
challenges and opportunities for women in agribusiness should be considered in all
capacity strengthening approaches to promote women’s empowerment.
CONCLUDING REMARKS
Agribusiness is increasingly recognized as an integral part of agricultural develop-
ment and transformation in sub-Saharan Africa. However, a systematic under-
standing of capacity needs and challenges and approaches that have worked to
build this capacity is not adequately covered in the literature. This article attempts
to respond to this need and has identified the specific capacities needed for success-
ful agribusiness development and management in sub-Saharan Africa at the indi-
vidual, organization, and system levels. A review of the current offering has
identified what aspects of agribusiness education could be strengthened to hasten
agribusiness growth and agricultural transformation. From the capacity-develop-
ment perspective, there is a large gap in the supply of and demand for adequate
agribusiness development and management capacity. Many programs remain
focused on agricultural production, creating a significant knowledge and capacity
gap among graduates. Agribusiness education and training must be reformed to
match the needs of the expanding agribusiness market. Agribusiness education
should build managerial and entrepreneurial capacities in addition to technical pro-
duction and marketing skills in order to increase the effectiveness of agribusiness
institutions. The agribusiness environment in sub-Saharan Africa will continue to
change and expand. Therefore, the capacities required for agribusiness development
and management will continue to change as well. This will require agribusiness
education programs to consistently adopt and update themselves to remain relevant
in order to produce graduates who are able to meet future agribusiness and devel-
opment challenges.
ACKNOWLEDGMENTS
The authors would like to thank Caitlin Shaw for her able research and editorial assistance in
developing the article. The views expressed in the article are the authors and should not be
attributed to the organizations they are affiliated with. Any remaining errors and omissions
are the sole responsibility of the authors.
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STRENGTHENING CAPACITY FOR AGRIBUSINESS

DEVELOPMENT AND MANAGEMENT IN SUB-SAHARAN

In sub-Saharan Africa, agribusiness has a major role to play in the transformation

*Corresponding author. Email: S.Babu@cgiar.org

THE ROLE OF AGRIBUSINESS IN AFRICA’S AGRICULTURAL

crops. Increased production of higher-value crops could enable smallholders to

CAPACITY NEEDS FOR AGRIBUSINESS DEVELOPMENT IN SUB-

investment plans (CAADP, 2008; FARA, 2011). However, a systematic understanding

Individual Capacities Required for Agribusiness Development and Management

Table 1. Potential targets for capacity development for agribusiness management

Individual Organization System/policy process

Technological capacity . Entrepreneurial/commercial . Aggregators . Technology scouters for varieties

Strengthening Capacity for Agribusiness

Source: Authors’ compilation.

the capacity to engage and be effective in a rural setting.

Individual-level skill Policy system Markets and institutions Technology/production system

Strengthening Capacity for Agribusiness

Source: Authors’ compilation.

Organizational Capacities Required for Agribusiness Development and Management

Kenyan horticulture. The development of the horticulture industry in Kenya is an

Africa Journal of Management

Source: Authors’ compilation.

Policy Capacity for Agribusiness Development

Africa Journal of Management

Source: Authors’ compilation.

THE CURRENT STATE OF AGRIBUSINESS EDUCATION AND TRAINING

Practical training/industry “Hard skills”/“soft

Africa Journal of Management

Strengthening Capacity for Agribusiness

Practical training/industry “Hard skills”/“soft

Africa Journal of Management

focuses on contextualized application of skills. Agribusiness programs should ensure

Agribusiness Education Challenges

managing directors of agribusinesses in subjects such as curriculum preparation and

Table 6. Comparison of selected public agribusiness programs

Strengthening Capacity for Agribusiness

Source: Authors’ compilation.

Examples for Scale Up

own institutions. The program combines on-the-job-training, classroom instruction,

business development in policy dialogue. By training candidates who are already

Figure 2. An integrated agribusiness management program – The GIMPA-IFPRI partnership

Figure 3. Mentoring women in agriculture – The case of Chimitex in Mali

illustrates the opportunity for private companies to invest in agribusiness capacity

CAPACITY STRATEGIES TO MATCH AGRIBUSINESS MARKET NEEDS

Developing Integrated/Holistic Education and Capacity Development in Agribusiness

. To address the human capital needs of agribusiness including inputs, services,

integrated framework of training based on industry needs.