Morocco's Strategic Position in Agricultural Development
During the recent inauguration of Ukraine's first agricultural hub in Ghana, Leonid Kozashchynk, the head of the Ukrainian Agricultural Union, emphasized that while Ghana is located in a complex region of West Africa troubled by internal conflicts, establishing such a facility in North Africa would be significantly more advantageous. He pointed out that Morocco had previously expressed its willingness to host a robust agricultural hub, showing readiness to procure Ukrainian grains and agricultural products and distribute them across other African nations. This willingness stems from Morocco's financial capabilities and regional influence, which could mitigate various risks associated with such operations. However, despite the establishment of the hub in Ghana being a positive step forward, Kozashchynk stressed the importance of expanding their geographic footprint and enhancing mechanisms to engage more effectively in this strategic market.
Addressing Food Insecurity in Africa
Kozashchynk highlighted the immense food insecurity facing Africa, where hunger claims over 25,000 lives daily, with the majority of victims residing in African nations. He noted that Ukraine produces five times more food than it consumes, indicating that increasing its presence in the African market could save lives while simultaneously presenting vast economic opportunities. He acknowledged that the delay in Ukraine's positioning within the African market is primarily due to political instability and a lack of rule of law in many African countries. Numerous accounts of losses have been reported, including the hijacking of Ukrainian grain ships by pirates and instances where companies did not receive their financial dues even after the safe delivery of goods.
Moreover, Kozashchynk pointed out that competitors, notably Russia, have made significant inroads into the African market. He suggested that Ukraine needs to adopt a different approach by involving international institutions, particularly UN agencies like the FAO and global financial organizations, to ensure the security of commercial operations.
Currently, Ukrainian agricultural exports account for only 5% of Africa's needs, and there is substantial potential to increase this figure dramatically. However, this requires a fundamental shift in trade philosophy, moving away from solely exporting raw materials. Kozashchynk cited successful models, such as Turkey, which is one of the largest food exporters to Africa, not by selling raw grains but by offering processed products like pasta and flour, thereby adding value. Similarly, the UAE imports raw materials from Africa, processes them, and then sells them back at a profit, generating billions in revenue, which is then used to supply food to African nations.
In conclusion, Kozashchynk noted that Ukraine currently sells agricultural products worth approximately $27 billion annually. In contrast, the Netherlands, possessing only a fraction of Ukraine's agricultural land, exports $108 billion worth of goods. This disparity highlights the need for Ukraine to attract between $85 billion and $90 billion in manufacturing investments over the next decade to boost production and export capacity to over $120 billion. The ideal plan involves manufacturing raw materials domestically and exporting them to an 'African hub' for distribution throughout the continent.
As reported by hespress.com.
