Agribusinesses in Nigeria, Tanzania and Zambia have seen their revenues fall by an average of 20 percent in four years owing to the devastating impact of COVID-19, climate change, and the Russian-Ukraine, according to a recent AGRA report. The report titled ‘From Crisis to Opportunity’ stated that agribusinesses across various value chains in Nigeria, Tanzania and Zambia are still recovering from the impacts of COVID-19, climate change and the Russia-Ukraine war.

“Many agribusinesses have been unable to bounce back completely from the impacts of COVID-19, highlighting the need for us to build more resilient market systems,” the report stated.

The report revealed that due to the “triple crisis,” revenues of agri SMEs in these countries have declined 20 percent year-on-year since 2020, as many businesses still grapple with escalating expenses caused by climate-related issues and the ongoing war in Ukraine.

“In all three countries, agribusinesses in Nigeria recorded the highest percentage of capital injection and staff trimming,” the report said.

According to the report, 36 percent of these businesses have reduced their staff strength due to revenue shortage.

“Increases in the cost of doing business, especially for transport, produce and labour, all resulting in higher prices with lowering customer spend in the market,” the report said.

SMEs in Nigeria experienced a dip of 49 percent between 2019 and 2020, and are still finding it difficult to bounce back today, the report noted.

Source: Business Daily