How can black owned agriculture businesses prosper within a white dominated retail monopoly?
Maxwell works with small businesses and assists businesses to transform from informal business to formal business giving them the chance to compete against large businesses which currently possess the monopoly.
No one understands the current challenges in the market quite like Maxwell Mc Donald, Business Development Consultant and Executive Director of the Black Business Front in Soweto.
With great focus being placed on agriculture and overcoming the challenges faced by those who venture into this industry.
“There is a lack of Enterprise Development in our agricultural sector in Africa that is caused by monopolies that dictate pricing and trade as a whole. 60% of Africans live in poor rural communities that can be transformed into farming communities, job creating entities which lead to food security and end hunger. Africa unnecessarily imports $$ billions worth of agricultural products and seeds which can easily be harvested in our continent at a cheaper price and/or a higher nutritional value than the low-quality imports. To reach our objectives we need investment in these sectors which will create employment opportunities as well as ownership.”
In this morning’s discussion on the Continental Sunrise Breakfast Show we covered various aspects of this issue. According to Maxwell some retailers have begun to allow small business owners to supply them with agricultural produce provided they meet the quality standards and can supply at the right price.
I feel that whilst this gives hope to small business and to emerging farmers, we should not neglect to remember that the monopoly is held due to the cost of the product. A farmer who produces at a large scale can afford to sell at a lower price where as a small farm may incur a higher CTC bringing down the profit margin quite significantly which is one of the major current challenges.
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