Why Africa Needs to Invest More in Agriculture

African economies need more than growth to create jobs and improve livelihoods for the majority. This goal will only be achieved by stepping up investments in the continents agricultural sector since most countries in Africa depend on agriculture for sustainability.

Africa’s economies are mainly driven by agriculture which contributes an average of 30 – 40% to most African economies, accounting for 17% of the continent’s total GDP and at least 40% of the continent’s foreign exchange earnings.

The contribution to foreign earnings is nearly 80% for some countries such as Malawi. The continent accounts for 89% of the rural population in agriculture-based countries, and until recently, the growth in agriculture in Sub-Sahara Africa has exceeded growth in non-agricultural sectors.

Although urbanization is rapidly increasing across the continent, agriculture still provides livelihoods for about 60% of the continent’s active labor force and 70% of the people of Sub-Sahara Africa depend on agriculture for their livelihoods and food security.

Hunger is a constant phenomenon in Africa. The United Nations Food and Agricultural Organization (FAO) reported that the total number of hungry people in the world was 795 million in 2014, with 239 million of these in Sub Sahara Africa. However, persistent hunger and food insecurity remains a key development policy concern, particularly in Africa.

Some 70% of Sub Sahara Africa depends on agriculture for their food and livelihood, primarily raising staple food crops and a few livestock on small farms. Yet, many farmers produce barely enough food to feed their families and are unable to generate an income to buy the inputs that can enhance crop yield.

The continent needs to adopt the “developmental state” model that is currently seen in Ethiopia and Rwanda that is central to the process of accelerated economic growth and transformation of any country.

Without committed public investment, sustained private investment will not be made, causing overall productive investment to fall below the level needed to keep the growth momentum going.

Agriculture contributes between 24 per cent of GDP in Tanzania — and 30 per cent in Burkina Faso — according to the African Centre for Economic Transformation (ACET), an economic policy institute based in Ghana.

And though agriculture productivity has been growing in countries like Tanzania, expanding by 20 per cent in the past decade, many people employed in the sector remain poor.

Agriculture in Africa need to be looked at as a development activity, like a social sector that can manage poor people in rural areas. Agriculture is a business. Seed, fertilizer, storage, value added, logistics and transport are all about business.

Article by Vera Shawiza.