Dr. Moses Ikiara (pictured), Managing Director of KenInvest writes: Agriculture is integral to the Kenyan economy. It employs more than half of the working population, accounts to 65 per cent of Kenya’s export earnings while it directly contributes almost 27 per cent to the country’s GDP.
While agriculture is undoubtedly a major growth industry for the entire East Africa region, there is still room for further growth. Local and international firms including a world favourite cereal manufacturer, Weetabix are increasingly turning to partnerships and mechanisation to raise the gear on the industry’s growth rates in order to leverage spiking consumer demand across East Africa.
Companies are adopting technological innovations more and more through knowledge transfer to increase revenues and production efficiency. The impacts of this are increasingly gaining the attention of the public and private sectors.
The implementation of Kenya’s Agricultural Sector Development Strategy (ASDS) is projected to raise agriculture’s GDP contribution in line with Kenya Vision 2030. This move is instrumental in stimulating a heavy shift from subsistence farming to value added agricultural production and agricultural export. With these factors in place, Kenya’s agricultural sector is poised for continued growth.
While Kenya is a leading producer of cereals (maize, wheat, rice and sorghum), East African demand for cereals currently outstrips supply. The country has yet to reach its potential in cereal production, and global firms are taking notice of this. Weetabix is set to invest GBP 1.3 million in Kenya in the next three to five years to double its production volume and increase market penetration.
The motivation behind the world-famous wheat producer’s shift to target Kenya is two-pronged. Firstly, the company aims to capitalise on East Africa’s reliance on imports to meet growing food demands. Secondly, the company endeavors to drive local production and support local farmers.
The company can now commit to its ambition of sourcing wheat within just 50 miles of the plant in the heart of East Africa, as it does at its original British base. Through enhanced ease of doing business and modernised agriculture infrastructure, Kenya is now well placed to facilitate this. As a result, we expect to see a boost in cereal production, with 420,000 tons of wheat produced this year – the highest in the region but still short of the country’s annual demand of 900,000 tons.
In a move to cut costly wheat importation, the global food manufacturer has committed to sourcing more than 60 percent of its raw materials locally. With every single Weetabix packet produced in the East African nation, we see a platform for local farmers to benefit from global trade and knowledge & technological transfer opportunities. The company is investing in offering technical support to local farmers, including teaching international standard agronomical practices intended to cut domestic production costs, and offset the impact of higher wheat importation prices.
This locally empowered agriculture model enhances the long-term sustainability of Weetabix’s operations in Kenya. According to the Food and Agriculture Organization (FAO), sharing technological innovations with farmers can increase yields by up to 40 percent. The Weetabix example is not isolated. We are increasingly seeing large corporates, both foreign and locally owned, building sustainable links with farmers.
Farmer-to-farmer knowledge transfer is a core ingredient of strengthening the sector and minimizing its vulnerability to global commodity price shifts. As more private sector firms encourage farm modernization, we are seeing greater cost efficiency and systems of empowered local farmers – a set up that is impacting far more than one or two harvests.
Homegrown businesses are also seeing huge value in driving knowledge transfer within agriculture. Developed by a local business for local farmers, M-Farm provides information including up-to-date market prices via an app or SMS and direct connection with buyers, as well as production analysis. M-Farm has been instrumental in innovating the way farmers access information; prompting greater agricultural output and ultimately Kenya’s competitiveness internationally.
For frontier markets, this is the most valuable type of investment and a model, which Kenya is targeting to drive the sector’s direct and indirect contributions to GDP.
These are ‘impact investments,’ which do not simply represent hikes in FDI for a Government but which have a transformative effect on Kenya’s community. In Kenya’s agriculture sector, opportunities for global firms are plentiful.
Will Self-Driving Cars Be Better for the Environment?
Technologists, engineers, lawmakers, and the general public have been excitedly debating about the merits of self-driving cars for the past several years, as companies like Waymo and Uber race to get the first fully autonomous vehicles on the market. Largely, the concerns have been about safety and ethics; is a self-driving car really capable of eliminating the human errors responsible for the majority of vehicular accidents? And if so, who’s responsible for programming life-or-death decisions, and who’s held liable in the event of an accident?
But while these questions continue being debated, protecting people on an individual level, it’s worth posing a different question: how will self-driving cars impact the environment?
The Big Picture
The Department of Energy attempted to answer this question in clear terms, using scientific research and existing data sets to project the short-term and long-term environmental impact that self-driving vehicles could have. Its findings? The emergence of self-driving vehicles could essentially go either way; it could reduce energy consumption in transportation by as much as 90 percent, or increase it by more than 200 percent.
That’s a margin of error so wide it might as well be a total guess, but there are too many unknown variables to form a solid conclusion. There are many ways autonomous vehicles could influence our energy consumption and environmental impact, and they could go well or poorly, depending on how they’re adopted.
One of the big selling points of autonomous vehicles is their capacity to reduce the total number of vehicles—and human drivers—on the road. If you’re able to carpool to work in a self-driving vehicle, or rely on autonomous public transportation, you’ll spend far less time, money, and energy on your own car. The convenience and efficiency of autonomous vehicles would therefore reduce the total miles driven, and significantly reduce carbon emissions.
There’s a flip side to this argument, however. If autonomous vehicles are far more convenient and less expensive than previous means of travel, it could be an incentive for people to travel more frequently, or drive to more destinations they’d otherwise avoid. In this case, the total miles driven could actually increase with the rise of self-driving cars.
As an added consideration, the increase or decrease in drivers on the road could result in more or fewer vehicle collisions, respectively—especially in the early days of autonomous vehicle adoption, when so many human drivers are still on the road. Car accident injury cases, therefore, would become far more complicated, and the roads could be temporarily less safe.
Deadheading is a term used in trucking and ridesharing to refer to miles driven with an empty load. Assume for a moment that there’s a fleet of self-driving vehicles available to pick people up and carry them to their destinations. It’s a convenient service, but by necessity, these vehicles will spend at least some of their time driving without passengers, whether it’s spent waiting to pick someone up or en route to their location. The increase in miles from deadheading could nullify the potential benefits of people driving fewer total miles, or add to the damage done by their increased mileage.
Make and Model of Car
Much will also depend on the types of cars equipped to be self-driving. For example, Waymo recently launched a wave of self-driving hybrid minivans, capable of getting far better mileage than a gas-only vehicle. If the majority of self-driving cars are electric or hybrids, the environmental impact will be much lower than if they’re converted from existing vehicles. Good emissions ratings are also important here.
On the other hand, the increased demand for autonomous vehicles could put more pressure on factory production, and make older cars obsolete. In that case, the gas mileage savings could be counteracted by the increased environmental impact of factory production.
The Bottom Line
Right now, there are too many unanswered questions to make a confident determination whether self-driving vehicles will help or harm the environment. Will we start driving more, or less? How will they handle dead time? What kind of models are going to be on the road?
Engineers and the general public are in complete control of how this develops in the near future. Hopefully, we’ll be able to see all the safety benefits of having autonomous vehicles on the road, but without any of the extra environmental impact to deal with.
New Zealand to Switch to Fully Renewable Energy by 2035
New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.
New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.
Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.
Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”
The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.
Zero net emissions by 2050
Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.
Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.
She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.
Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”
A worldwide shift to renewable energy
Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.
Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.
Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.
Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.
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