Agriculture is a crucial sector for the majority of African countries. Substantial investments are needed to improve yields and support growth.

On Tuesday, July 2, in Abuja, the European Union (EU), in partnership with the Economic Community of West African States (ECOWAS), unveiled a new digital platform aimed at boosting investments in Nigeria's agro-food sector. This initiative was presented on the sidelines of the 9th edition of the EU-Nigeria Business Forum.

Speaking on the significance of this innovation, Myriam Ferran, Deputy Director-General of the European Commission's Directorate for International Partnerships (INTPA), stated that it is "An agribusiness platform is a form of a digital agricultural platform that provides digital marketing, trading or investment space for commercial and transactional activities, interactions, communications, integrations and cooperation in the agri-food system and agro-industry between Nigerian and European SMEs."

The launch of this platform aligns with commitments made during the EU-Nigeria ministerial dialogue in November 2020. According to the agreement with the Nigerian government, it was decided to create an EU-Nigeria agro-industrial platform to bring together Nigerian and European agricultural and agri-food communities to promote trade, attract responsible investments, and foster business-to-business relationships, particularly for SMEs.

In Nigeria, agriculture holds a significant position in the economy, being the second most important activity after the oil sector. According to data platform Statista, the agricultural sector generated about 21% of the country's gross domestic product (GDP) in the second quarter of 2023. However, despite its substantial contribution, Nigeria's agricultural sector faces numerous challenges, including a lack of investments, outdated farming systems, and insufficient supply to meet the growing population and increasing food demand.

The new platform is expected to address these challenges, increase private investments in the country's agro-industrial sector, and strengthen links and interactions between agro-industrial actors in Nigeria and Europe.

Samira Njoya