Transforming agriculture can become a stimulus for economic development across the continent.
This is according to a study by the Africa Centre for Economic Transformation (ACET), launched at a high-level event on 13 May during the UN Economic Commission for Africa’s (ECA) annual Conference of Ministers in Addis Ababa (Ethiopia).
Key findings were shared by the report’s authors with government officials, policy makers, analysts and business representatives.
Their discussions reviewed how increasing agricultural productivity can contribute to wider economic development. Opportunities for improving agricultural value chains were identified as well as strategies to connect farming more closely to other areas of economic activity through downstream agro-processing and the upstream manufacturing of inputs or logistics.
These opportunities were balanced alongside the need to achieve growth that was both equitable and sustainable.
The event, co-organised with the ECA Regional Integration and Trade Division responsible for policy research on food security and agricultural co-operation across the continent, offered a compelling rationale for leveraging the sector to kick-start wider economic advances.
Dr KY Amoako, ACET’s president, placed the report in context by explaining: ‘Growth is not enough − transformation means growth with depth.”
The findings were endorsed by Ken Ofori-Atta, Ghana’s finance minister, who told the gathering: “This type of deep research motivates us.”
He reflects that farming in Ghana was no longer confined to the ‘backwaters’ in terms of government priorities but was being stimulated by the Planting for Food and Jobs flagship agricultural modernisation programme.
Vera Songwe, executive director of the ECA, emphasises how farming is vital to macroeconomic stability. “Agriculture is one of the most crucial issues in Africa’s transformation agenda…now is the time to change our farming processes.” She also comments on the potential for a single market for goods and services in Africa opening borders and opportunities for farmers.
The report findings also demonstrated how such a bold agenda for farming could generate employment opportunities in value chains, increase incomes, reduce poverty and help improve the external trade balance.
According to ACET, however, giving farmers access to knowledge, modern inputs, irrigation and mechanization was deemed crucial securing such benefits. Addressing issues such as land tenure systems, an ageing farming workforce, low yields, logistical challenges and cross-border trade challenges would also be vital for farming modernisation.
Consideration was also given to cross-cutting issues related to gender equity, environment and climate change. Special emphasis was placed upon the “missing” middle-scale farms that could be attractive to Africa’s ambitious youth. It was explained they frequently become a “glue” connecting small and large farmers for activities such as dairy farming.