Ukraine's Agricultural Hub Launch in Ghana
During the inauguration of Ukraine's first Agrohub in Ghana, Leonid Kozachenko, the President of the Ukrainian Agrarian Union, highlighted the complexities of establishing agricultural initiatives in Africa. He remarked that Ghana, located in the western part of the continent, faces significant internal conflicts and contradictions among nations, suggesting that it would have been more advantageous to set up such a platform in North Africa, where security and stability are more assured. Kozachenko noted in an interview with Ukrainian radio that Morocco had previously expressed interest in hosting a robust center on its territory, demonstrating readiness to purchase Ukrainian grains and agricultural products for distribution throughout Africa. The Moroccan initiative aimed to mitigate risks, leveraging their financial capabilities and regional influence. Nonetheless, he emphasized that the opening of the Ghana center represents a step forward, advocating for continuous expansion and the development of mechanisms to enhance Ukraine's presence in this strategic market.
The Urgency of Addressing Food Insecurity
Kozachenko further pointed out that Africa is a complex region but simultaneously suffers from severe food shortages, with more than 25,000 people dying daily worldwide due to hunger—a significant portion of whom are in African countries. He underscored that Ukraine produces five times the amount of food it consumes domestically, making its expansion into the African market not only a potential lifeline for the continent but also an enormous economic opportunity. However, he acknowledged that Ukraine's delayed entry into the African market stems from political instability and the absence of the rule of law in many countries across the continent. Kozachenko recounted numerous instances of grain ships being intercepted and looted by pirates, and even in cases where goods were safely unloaded, companies often struggled to receive their payments. He noted that attempts by Ukrainian businesses to invest directly in African production had resulted in lost funds.
The competition is fierce, with countries like Russia making significant inroads in Africa. Kozachenko asserted that Ukraine must adopt a different approach, one that involves engaging international institutions, particularly United Nations entities like the FAO, and global financial institutions to ensure the security of commercial operations. He emphasized that Ukrainian agricultural exports currently meet only 5% of Africa's needs, and there is substantial potential for growth. However, this requires a fundamental shift in the trade philosophy, moving away from solely supplying raw materials.
He elaborated on successful models, citing Turkey as one of the largest food exporters to Africa, not by selling raw grains but by exporting processed products such as pasta, flour, and other value-added items. Additionally, he noted an interesting approach by the United Arab Emirates, which imports raw materials from Africa, processes them in its refineries, and then profits significantly while supplying food back to African nations.
Currently, Ukraine sells agricultural products worth approximately $27 billion annually. In comparison, the Netherlands, with agricultural land 11 times smaller than Ukraine's, exports goods valued at $108 billion. This disparity arises from their ability to purchase raw materials, reprocess them, and sell the finished products globally. To rectify this situation, Kozachenko stated that Ukraine needs to attract $85 to $90 billion in investments within the next decade specifically in manufacturing. This would enable Ukraine to achieve production and export levels exceeding $120 billion, with the ideal strategy being to manufacture raw materials domestically, export them to the 'African hub,' and distribute finished products across the continent.
As reported by hespress.com.
