Goal 2 of Agenda 2030
Goal 2 of Agenda 2030 is to end hunger, achieve food security and improve nutrition, and promote sustainable agriculture in the world by 2030. Access to sufficient nutritious food is a human right and a prerequisite for being able to escape poverty. Today, 850 million people live in hunger. Insufficient nutritional intake leads to adverse effects on education and productive work, hindering the opportunities for development and economic growth.
The global food system needs to be transformed
In recent years, uncertainty as regards food supply has increased in many parts of the world. Climate change is one reason for this, but disruption to trade as a result of the Covid-19 pandemic and the war in Ukraine has also had a negative impact. Deficiencies have also become apparent in the structure of the global food system. To reverse this trend, a sustainable and inclusive food system is needed, where the food produced benefits everyone.
Development has stagnated
The Covid-19 pandemic and the war in Ukraine have disrupted global trade patterns and the production and consumption of goods, leading to rising food prices. The populations of developing countries are the hardest hit, as they spend a higher proportion of their household income on food. In addition, droughts, floods and heat waves caused by climate change are also complicating food production in many regions.
As a result of the situation, the development towards achieving goal 2 has stagnated. According to the UN’s annual SDG report, almost 670 million people, around eight percent of the world’s population, will still live inhunger by 2030. This is the same figure as in 2015, whent he target was first adopted.
An unequal global food system
Recent global trends and extreme weather events, such as the severe drought in the Horn of Africa, have further highlighted the issue of food security on the development policy agenda. According to a report from the Expert Group for Aid Studies, agricultural development is one of the most effective tools for eliminating extreme poverty, reducing inequality and coping with a global population increase to 9.7 billion people by 2050. However, the challenge is not that there is not enough food produced globally, rather how it is distributed.
Today, it is mainly large companies and developed countries that benefit from the way in which the food system is structured. Globally, 78 percent of the value in the food and agricultural chain is generated by operators other than the farmers themselves. In Africa, the proportion is only 34 percent, reflecting the underfunding of the part of the food chain processing and handling food. Food produced in Africa is often exported to richer countries in order to be processed there, and then imported back. Between 2016 and 2018, the continent imported 85 percent of all the food that it consumed.
The Covid-19 pandemic and the war in Ukraine have disrupted global trade patterns and the production and consumption of goods, leading to rising food prices. The populations of developing countries are the hardest hit, as they spend a higher proportion of their household income on food. In addition, droughts, floods and heat waves caused by climate change are also complicating food production in many regions.
As a result of the situation, the development towards achieving goal 2 has stagnated. According to the UN’s annual SDG report, almost 670 million people, around eight percent of the world’s population, will still live inhunger by 2030. This is the same figure as in 2015, whent he target was first adopted.
An unequal global food system
Recent global trends and extreme weather events, such as the severe drought in the Horn of Africa, have further highlighted the issue of food security on the development policy agenda. According to a report from the Expert Group for Aid Studies, agricultural development is one of the most effective tools for eliminating extreme poverty, reducing inequality and coping with a global population increase to 9.7 billion people by 2050. However, the challenge is not that there is not enough food produced globally, rather how it is distributed.
Today, it is mainly large companies and developed countries that benefit from the way in which the food system is structured. Globally, 78 percent of the value in the food and agricultural chain is generated by operators other than the farmers themselves. In Africa, the proportion is only 34 percent, reflecting the underfunding of the part of the food chain processing and handling food. Food produced in Africa is often exported to richer countries in order to be processed there, and then imported back. Between 2016 and 2018, the continent imported 85 percent of all the food that it consumed.
Percent of workers in the agricultural sector in developing African and Asian countries that are women
50%
Number of people who live in hunger
850m
Percent of Africa's GDP that comes from food and agriculture
20%
Opportunities and challenges in Sub-Saharan Africa
The food and agriculture sector accounts for 20 percent of Africa’s total GDP. Just one percent of private investment in the food system globally goes to the region, while demand for food is growing by an average of three percent per year as the population increases. To meet demand and attract more investment, the food system needs to be improved and streamlined. Africa has huge resources in the form of arable land that could be used to boost food production. Despite this, the output of most crops is far below what could technically be produced.
One reason for this is the complex system of land rights based on common, rather than individual, tenure and ownership , which means that farmers are often allocated relatively small and scattered plots of land. This system tends to limit the intensity of agricultural production and slow down the pace of investment aimed at modernising production. Moreover, much of the arable land in Africa is located in inaccessible places due to poor infrastructure both within and between countries.
Development finance institutions can contribute to a more efficient and inclusive food chain
The World Bank believes that long-term investments in agriculture could be up to four times as effective in reducing poverty compared with investments in other areas. However, there is a substantial funding gap, and public funding in itself will not be enough. It is estimated that USD 350 billion a year in investments will be needed to transform the global food system. Many of these investments will have to be made in developing countries. Investments in the sector entail numerous risks not only from a financial perspective, but also in terms of sustainability. As a result, investors must be willing to take risks and have a business model that prioritises sustainability and helps to mitigate the risks that are identified.
Africa’s agrifood system could generate billions of US dollars by 2030 if access to capital, electricity, technology and irrigation systems were to be improved. Development finance institutions such as Swedfund can contribute through sustainable investments in different parts of the food chain which increase the efficiency of the food system, production methods and value chains, and in turn increase production, connect farmers with markets, and reduce food waste. However, in order to have an impact, parallel initiatives from different operators will be needed, e.g. regarding regulatory issues.
Sustainable investment in the food system cancreate more decent and formal jobs. Over 50 percent of workers in the agricultural sector workers in developing countries in Africa and Asia are women, and sustainable investments in the sector can therefore help to strengthen women’s economic empowerment and working conditions. As agriculture and forestry account for around 25 percent of global greenhouse gas emissions, initiatives in the sector can also help to address the climate crisis. This can be done through investments in climate-smart production and distribution, as well as new technology and services.
The food and agriculture sector accounts for 20 percent of Africa’s total GDP. Just one percent of private investment in the food system globally goes to the region, while demand for food is growing by an average of three percent per year as the population increases. To meet demand and attract more investment, the food system needs to be improved and streamlined. Africa has huge resources in the form of arable land that could be used to boost food production. Despite this, the output of most crops is far below what could technically be produced.
One reason for this is the complex system of land rights based on common, rather than individual, tenure and ownership , which means that farmers are often allocated relatively small and scattered plots of land. This system tends to limit the intensity of agricultural production and slow down the pace of investment aimed at modernising production. Moreover, much of the arable land in Africa is located in inaccessible places due to poor infrastructure both within and between countries.
Development finance institutions can contribute to a more efficient and inclusive food chain
The World Bank believes that long-term investments in agriculture could be up to four times as effective in reducing poverty compared with investments in other areas. However, there is a substantial funding gap, and public funding in itself will not be enough. It is estimated that USD 350 billion a year in investments will be needed to transform the global food system. Many of these investments will have to be made in developing countries. Investments in the sector entail numerous risks not only from a financial perspective, but also in terms of sustainability. As a result, investors must be willing to take risks and have a business model that prioritises sustainability and helps to mitigate the risks that are identified.
Africa’s agrifood system could generate billions of US dollars by 2030 if access to capital, electricity, technology and irrigation systems were to be improved. Development finance institutions such as Swedfund can contribute through sustainable investments in different parts of the food chain which increase the efficiency of the food system, production methods and value chains, and in turn increase production, connect farmers with markets, and reduce food waste. However, in order to have an impact, parallel initiatives from different operators will be needed, e.g. regarding regulatory issues.
Sustainable investment in the food system cancreate more decent and formal jobs. Over 50 percent of workers in the agricultural sector workers in developing countries in Africa and Asia are women, and sustainable investments in the sector can therefore help to strengthen women’s economic empowerment and working conditions. As agriculture and forestry account for around 25 percent of global greenhouse gas emissions, initiatives in the sector can also help to address the climate crisis. This can be done through investments in climate-smart production and distribution, as well as new technology and services.
A sustainable food system is one that delivers food security and nutrition for all in such a way that the economic, social and environmental bases to generate food security and nutrition for future generation is not compromised.
Food and Agriculture Organization of the United Nations
