Will Africa’s Next Growth Story Start on the Farm?

The challenge is not simply producing more food. Agricultural production has increased in Africa over the last few decades, but growth isn’t necessarily durable. Agri-food supports two-thirds of African livelihoods and generates a third of the continent’s GDP. But farmers generate less value than their counterparts elsewhere: about $1,500 per worker annually versus $4,300 globally, according to figures from AGRA, the organization formerly known as the Alliance for a Green Revolution in Africa. Higher profits mean more farmers can afford to stay in the business and younger people will be enticed to join, thereby creating a more sustainable food system for the continent. 

Profitable farming isn’t just about feeding people, as important as that is. A developed agriculture sector creates opportunities for investment in processing, trading, and other functions along the agriculture value chain, leading to further economic growth opportunities. Only around 12-15% of Africa’s agricultural GDP comes from processing, compared to more than 60% in developed regions, according to AGRA. And agricultural outputs can be the basis of new industries: think of biofuels. From a climate perspective, too, higher profits create adaptive capacity. Farmers with margin can invest in irrigation, improved seeds, better soil health, or simply absorb a bad season.