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Challenges: collaborations that engender food security in CAR

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Since the arrival of the Seleka rebel group in the Central African Republic, CAR, in 2013; as well as other armed groups engaging in attacks, and reprisals that have caused large-scale displacements of persons, the country has not recovered from the destructions meted on it.

CAR with an estimated population of about 5.5 million people (about 50% female) has been fragmented along diverse lines. The country not only suffers from a lack of social cohesion but citizens’ livelihoods have also been eroded; there are shortfalls in food production and food supplies because violence has adversely affected agricultural activities, brewing severe food insecurity.

But these could be addressed if there are effective collaborations at the regional and continental levels. The landlocked country is known for its rainforest, natural resources, and wildlife; like other African countries, a World Bank report in March 2023 shows that “about 75% of the citizens, particularly women, depend on agriculture for their livelihood.”

The largely agrarian country cultivates crops like cassava, maize, millet, sorghum, rice, and peanuts, for home consumption while cotton and coffee are cultivated as cash crops. Livestock farming is in cattle, sheep, goats, pigs, poultry as well as fishery.

Enhancing agriculture and its value chains can efficiently engage the teeming unemployed people and improve the country’s economy in line with the African Union Agenda 2063 especially as the country intensifies efforts at mitigating violent conflicts.

The commitment to peace was a major achievement on the CAR’s performance assessment in the first report on the implementation of the Agenda 2063 dashboard which showed the country made efforts to reduce conflict-related deaths “from 84 in 2013 to 30 per 100,000 persons in 2019.” Peace, security, and stability showed 100% performance; an indication that the country is committed to maintaining peace.

But CAR would not be food sufficient if other activities that can enhance food security are not urgently addressed. The said dashboard revealed that the country had “0% in the modern agriculture for increased productivity,” and also indicated that there was “a rise in the youth unemployment rate from 38.4 % in 2013 to 47% in 2019.”

A peanut farmer, Brigitte expressed concern that “leaving such an energetic population unemployed could derail the efforts at attaining peace.”

Why collaborate?

Citizen Jean-Paul noted, “Many reports have gone about the many problems we face, but we are committed to peace, there are isolated cases of a relapse, that is why we need collaborations with relevant stakeholders from within and outside, who would engage the youths and women in productive agricultural activities. We have a thriving peanut and other businesses, the labour is available, we need technological innovations, we need our institutions to be strengthened and good governance expanded to the countryside to enhance profitable agriculture, engage the people, produce food, and make the food available to everyone.”

Celestine added, “Our human capital development indices are low, and the gains in security were temporarily reversed in 2020. Continued dialogue returned us on the pathway to peace and stability but millions of people are still living in extreme poverty. With beneficial partnerships especially in agriculture, the vast land which is yet to reach its potential would be cultivated, and the ungoverned space outside Bangui and the neighbourhood that has given room for bandits to pose threats to farmers would be effectively utilized.

“Series of activities would stimulate infrastructural development so that transporting goods to the cities on difficult terrains which is very risky to farmers would be minimized. The credible partnership will ensure the utilization of the forests for economic purposes to reinforce the sustainable production and consumption pattern of the Agenda 2063.”

The African Development Bank Group in its Country Strategy Paper, (CSP 2017-2021) acknowledged that the CAR has “real economic growth potential in the
agro-pastoral sector capable of reducing poverty sustainably,” and “the country’s climate is conducive to rainfed agriculture, with relatively long cropping cycles enabling the cultivation of a wide range of food (cassava, sorghum, maize, peanut, rice, banana, tomato, etc.) and export crops (cotton, coffee, cocoa, palm oil, rubber, etc.)

“The climatic conditions are equally conducive to livestock development. Its hydrographic network, with two large rivers (Oubangui and Sangha), makes fish farming a potential growth sector, the same as river transport development whereby three capital cities of Central Africa (Brazzaville, Kinshasa, and Bangui) can be connected.”

The objective of the CSP 2017-2021 was to “help the country emerge from its fragile situation and create conditions for strong and inclusive economic growth.” The strategy focused on “agricultural development and infrastructure support for social inclusion; as well as institutional capacity building and governance.”

Assistance to curb challenges – AU-led mediation/AfDB intervention:

The African Journal on Terrorism by the African Centre for the Study and Research on Terrorism in its special edition, revealed that since the Solemn Declaration of 2013, several crises have been resolved and political stability has been gradually restored through AU-led mediation and crises have been amicably resolved in many countries including the CAR.

The leading African Bank, AfDB in 2022 according to information on its website; approved over $1 billion for an emergency food production plan, and CAR with 23 other countries benefited.

The facility provided African smallholder farmers with certified seeds and increased access to agricultural fertilizers. It also supported governance and policy reform, to encourage greater investment in Africa’s agricultural sector.

The facility was to enable African farmers to produce 38 million additional tons of food worth an estimated $12 billion over two years as Dr. Beth Dunford, the Bank’s Vice President for Agriculture, Human and Social Development said, “The Bank’s approval of African Emergency Food Production Facility programme was to see more farmers access climate-smart seed, fertilizer and other support to boost Africa’s food security…”

Again, in the same year, Mamady Souaré, the Bank’s Country Manager in the CAR disclosed $5.4 million was donated to the country for a food security project, as he said, the grant was to provide farmers with “seed and fertilizers to boost food production and, thus, improve food security in the Central African Republic.”

The grant was to among other things, “help the Central African Republic to implement an emergency food programme to tackle the surge in food prices exacerbated by the war between Russia and Ukraine” as well as be used to “train workers in three national institutions active in the field of agriculture.”

AU initiatives to ensure food security:

No country can successfully tackle its agricultural and economic challenges without effective collaboration with relevant stakeholders and to enhance such collaborations, the AU had initiated some continental frameworks like the Comprehensive African Agricultural Development Programme (CAADP), as well as flagship programmes like the African Continental Free Trade Area (AfCFTA).

The CAADP is to help eliminate hunger and reduce poverty by raising economic growth through agriculture-led development. Through CAADP, African governments agreed to allocate at least 10% of national budgets to agriculture and rural development and to achieve agricultural growth rates of at least 6% per annum. There are also targets for reducing poverty and malnutrition, increasing productivity and farm incomes, and for improvements in the sustainability of agricultural production and the use of natural resources.

CAR can effectively explore this having signed the CAADP Compact in 2011, committing to prioritize agricultural transformation and development. Citizen Richard noted; “… political leaders’ determination could make the difference here…”

AfCFTA on its part is to encourage regional and continental trade in goods among African countries, an instrument to accelerate intra-African trade and boost Africa’s trading position in the global marketplace.

AfCFTA Secretary General, H.E. Wamkele Mene, in 2020 while addressing the Council of Ministers responsible for Trade reiterated the need for African States to take advantage of the initiative saying, “AfCFTA is more than a trade agreement, it is a development instrument.”

It is projected that when countries successfully implement the agreement, about 100 million Africans will be lifted out of poverty and intra-Africa trade would be boosted by $35- 40 billion annually.

Recall that in the 2017 country scorecard for implementing Malabo Declaration, the Africa Union Development Agency- New Partnership for Africa’s Development (AUDA- NEPAD) showed the CAR scored “2.4/10 and was not on track in implementing the Malabo Declaration on Agriculture transformation in Africa” and a 2019 World Bank rating ranked CAR 184 among 190 economies in the ease of doing business hence the need to expedite action using CAADP and AfCFTA to remedy the situation.

Towing the right path:

But efforts have been escalated recently. The country’s National Agricultural Investment Plan (NAIP) has ensured improved policy development and implementation; rural women and youths are mobilized to create wealth in the agricultural sector, the AUDA-NEPAD disclosed.

At the Consulate of CAR in Abuja, Nigeria, the Consul, Aloy Michel stated, “The government of CAR and the UN are doing the job of ensuring security and food security. Being a farmer in crops and livestock, President Faustin Touadera is making efforts to empower farmers and women to improve food production.

“The government is inviting investors from different countries who can come with the modern technology for farming to educate citizens, however, the government has been trying to educate the youths on the importance of agriculture and seeking the support of the international community to adequately equip them to produce food and create wealth.”

On AfCFTA, he hinted at friendly trading policies saying, “AfCFTA can help the country to develop, the free import and export duties target inclusive development in the agricultural sector.” End.

This article was developed with support from the African Union through the African Union Agenda 2063 Pitch Zone Awards, a partnership with the African Women in Media.

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Business

Nascon, Coronation, Jaiz Bank top stock pick this week

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Nigerian stocks advanced by 2.9 per cent last week, lifted by bank and oil & gas equities. All the sector indexes appreciated during the week.

The main equity index has yielded 60.5 per cent so far this year.

“Recent broad-based declines have, however, brought several frontline and mid-cap stocks to more attractive entry levels. This could encourage some bargain-hunting during the week,” analysts at Meristem Securities said in a note ahead of the week.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

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Nascon

Nascon tops this week’s list for its strong fundamentals. The net profit ratio (NPR) of the salt maker is 9.3, while the price-to-earnings (PE) ratio is 11.5x. Its 14-day relative strength index (RSI) is 6.9.

Coronation Insurance

Coronation appears on the pick on the basis of its attractive fundamentals. The NPR of the insurer is 22.7, while the PE ratio is 5.2x. The 14-day RSI is 55.4.

Jaiz Bank

Jaiz makes the selection for its strong fundamentals. The bank’s NPR is 28.5, while the PE ratio is 1.5x. Its 14-day RSI is 43.9.

Fidson

Fidson makes the cut for its sound fundamentals. The NPR of the drug manufacturer is 7.8, while the PE ratio is 17.7x. The 14-day RSI is 43.

CAP

CAP makes the cut for its sound fundamentals. The NPR of the chemical manufacturer is 14.1, while the PE ratio is 13.5x. The 14-day RSI is 3.6.


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Mastercard sees 300m shoppers using AI agents for payments by 2030 – Technology Times

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Mastercard expects more than 300 million online shoppers globally could routinely rely on artificial intelligence (AI) agents to shop and make payments on their behalf by 2030, signalling a potential shift in the architecture of digital commerce and payments.

The projection is contained in Mastercard’s report, A Short History of the Future of Shopping and Payments, that examines the implications of agentic AI for merchants, payment providers, banks, fintech companies and consumers.

The emerging model, known as agentic commerce, would allow AI systems to operate within parameters authorised by consumers, including searching for products, comparing prices and features, verifying information and ultimately initiating or completing transactions.

For the payments industry, the development could move AI from being primarily a customer-facing tool to becoming an active participant in the transaction chain.

Mastercard expects more than 300 million online shoppers globally could routinely rely on artificial intelligence (AI) agents to shop and make payments on their behalf by 2030, signalling a potential shift in the architecture of digital commerce and payments. Image credit: AI.

Mastercard said routine purchases such as groceries, medicines and subscriptions are likely to be among the early categories in which consumers delegate purchasing activity to AI agents.
Under this model, a consumer could establish parameters such as budget, preferred brands, delivery requirements or other conditions, leaving the AI agent to determine which transaction meets those requirements.

AI agents could become new payment participants

Mastercard said routine purchases such as groceries, medicines and subscriptions are likely to be among the early categories in which consumers delegate purchasing activity to AI agents.

Under this model, a consumer could establish parameters such as budget, preferred brands, delivery requirements or other conditions, leaving the AI agent to determine which transaction meets those requirements.

The financial implication is that payment infrastructure would increasingly need to recognise and authenticate transactions initiated by software acting under a consumer’s authority.

This could create new requirements around identity, consent, authentication, transaction limits and liability, particularly where an AI agent has discretion to select a merchant or product.

Payment security moves beyond the consumer

Mastercard said trust will become increasingly important as software begins to transact on behalf of consumers.

The company identified identity, consent, authorisation, security and liability as areas that banks, fintech companies and merchants will need to address as agentic commerce develops.

The issue is significant for financial institutions because conventional digital payments generally assume that the person initiating a transaction is directly interacting with the merchant or payment interface.

Agentic commerce introduces another layer: software may initiate the transaction while the underlying financial authority remains with the consumer.

Payment networks and financial institutions could therefore face growing demand for mechanisms that distinguish authorised AI activity from unauthorised transactions, while giving consumers visibility and control over what their agents can purchase and spend.

Mastercard cites live European transaction

Mastercard said it and its partners have completed what the company described as Europe’s first live, end-to-end agentic payment transaction.

The company presented the transaction as a demonstration of how AI agents can participate in purchasing while maintaining consumer safeguards and control.

The development places payment networks at the centre of an emerging market in which the interface between consumers and merchants could increasingly be mediated by software.

For card networks and other payment infrastructure providers, the transition could create opportunities around authentication, tokenisation, transaction controls and other services required to support machine-initiated payments.

Retailers may have to optimise for machines

The shift could also affect the economics and operating models of digital commerce.

Mastercard said retailers will increasingly need to serve both human consumers and AI agents. Product information, claims, reviews, pricing, policies and other commercial data will need to be sufficiently structured and machine-readable for AI systems to evaluate them.

This means merchants may have to consider not only how products appear to consumers but also how effectively their commercial information can be discovered, interpreted and verified by AI systems.

The development could eventually influence digital advertising, product discovery, merchant visibility and customer acquisition as AI agents increasingly determine which products meet consumers’ requirements.

Implications for Nigeria’s payments market

For Nigeria, where banks, fintechs, payment service providers and merchants have rapidly expanded digital transaction channels, the development could introduce another layer to an already evolving payments ecosystem.

Agentic commerce could eventually require Nigerian payment providers to support controlled transactions initiated by AI systems, while maintaining clear links between the software, the authorised consumer and the underlying payment account.

It could also raise questions around transaction limits, dispute resolution, fraud liability, consumer protection and regulatory oversight when an AI system makes or executes a purchasing decision.

The opportunity extends beyond payments. Nigerian merchants seeking to participate in AI-mediated commerce may increasingly need to ensure that product catalogues, prices, inventory, delivery terms, refund policies and other commercial information are accessible to AI systems.

However, Mastercard’s 300 million figure is a projection rather than an established market size. Actual adoption will depend on consumer trust, regulatory developments, technical standards, merchant readiness and the ability of financial institutions and payment networks to provide secure infrastructure for machine-authorised transactions.

The broader significance for financial markets is that agentic AI could change not only how consumers shop, but also who, or what, initiates digital transactions, potentially creating a new layer of infrastructure between consumers, merchants and payment providers.

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