Feeding Africa’s growing population is a big development challenge for governments, policy makers and agriculture experts. Adding to the challenge is the high level of food loss and waste that most small-scale farmers experience.
The African Postharvest Losses Information System reports indicate that countries in Africa waste more than 30% of fresh fruits and vegetables through inefficient post-harvest management. The impact of this loss and waste is severe on smallholders who rely on farming for a living. The Rockefeller Foundation has warned that inefficient post-harvest infrastructure could cause millions of agriculture-dependent households in Africa to fall back into extreme poverty.
The region urgently needs solutions to reduce food loss and waste.
Tanzania is one of the countries that experience this problem. The east African nation is an agriculture-based economy with small-scale farmers dominating the sector. Most small-scale farmers live in areas where access to electricity is limited. As a result, they don’t have cold storage facilities for their fresh vegetables and fruits. With a lack of cold storage, nearly 30% of fresh produce in Tanzania perish before they get to consumers. For fresh tomatoes, as much as 50% is lost before reaching markets due to poor storage conditions.
Recently, solar-powered cold storage facilities have emerged as a potential solution. These facilities are already benefiting thousands of farmers and traders in Nigeria. But they are not reaching many others across sub-Saharan Africa.
In my recent research, I examined what was holding back progress. Focusing on tomato farming in Kilolo district in south-east Tanzania, I spoke to farmers, solar energy experts and policy experts to explore what needs to be done to improve access to cold storage facilities. I found that the barriers to uptake were limited awareness, the cost of the technology, farmers’ low capacity to pay, and consumer preference for non-refrigerated food. Practical policy interventions would include incentives to attract investment, payment flexibility to make technology more affordable, and greater awareness of the benefits of cold storage.
What causes tomato losses
Tomato production has huge agribusiness potential in Tanzania. However, small-scale farmers are confronted with several post-harvest management challenges.
In my interactions with farmers, I noticed that most tomatoes got damaged soon after harvesting due to poor handling, lack of proper storage and the use of motorbikes to transport tomatoes from farms to distant wholesale markets.
Due to a lack of storage facilities, farmers without pre-orders kept their harvest in a shaded open space while waiting for buyers. Some reported treating matured tomatoes with chemicals to delay ripening while waiting for buyers. Or they simply delayed harvesting them. When the rain comes, most tomatoes get spoiled very quickly. As a result of all these factors, post-harvest tomato losses could be as high as 60%.
Solar-powered cold storage technology
Tanzania has made significant progress in increasing access to solar energy technologies for rural populations. About 70% of rural households use appliances powered by solar. But high investment costs remain the most significant barrier to uptake.
A solar expert told me a 40ft solar-powered cold storage facility could cost about US$20,000 to set up. Given that most small-scale farmers are low-income earners, such a facility is beyond their means. As a result of small market share and the significant upfront costs involved, solar companies have been reluctant to venture into the cold storage technology business, added this solar expert. The capital cost constraint is also linked to poor financing for renewable energy programmes. In several parts of Africa, including Tanzania, insufficient foreign direct investment for solar energy projects has been identified as a major impediment to market growth.
Solar-powered technologies are a clean energy solution with environmental benefits. But they are rarely promoted; marketing is poor. In Tanzania, my interactions with farmers and traders revealed that the vast majority of the potential market had no basic knowledge of solar-powered cold storage. They were interested in using the technology to minimise losses during harvest season. But they weren’t sure how it would affect their business earnings. They needed more information.
Farmers and traders also expressed concerns about whether their regular clients would be willing to buy chilled or refrigerated tomatoes. I was surprised to hear that this was a potential problem. According to these farmers, most consumers in Tanzania prefer freshly harvested tomatoes. One said:
Distant buyers from Dar es Salaam, Tanga, or Dodoma sometimes opt to come straight to the farm and pick the tomatoes they want; usually, they prefer and want you to harvest those that are in the green stage so that they don’t spoil during transportation. These kinds of buyers will not buy tomatoes that have been stored in cold storage facility.
Experts suggested that this concern could stem from limited exposure to chilled and frozen foods among local populations in Africa. Solar service providers would need to be aware of this market reality.
Overcoming barriers
Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest losses and attain food security, as outlined in the African Union Malabo Declaration. But costs and affordability make it very challenging for African-based solar service providers. Private sector participation will be needed to increase financing and investment for cold storage technologies in emerging markets such as Tanzania. This can only be realised under a supportive regulatory environment and innovative policy incentives that attract capital.
The good news is that in the last few years, private financing for renewable energy programmes in developing countries has more than doubled. The opportunities are opening up for African-based solar companies and their potential market.
Evodius Waziri Rutta, Sustainability Researcher, Queen’s University, Ontario
Source: allafrica.com
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition
On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
