What's Happening?
Africa, despite its vast agricultural potential, remains a marginal player in global agribusiness. The continent's share of global agricultural exports has declined from 8% in 1960 to 4% in the early 2020s.
Policymakers have largely neglected agribusiness export performance, focusing instead on manufacturing for global integration. To address this, four key reforms are proposed: improving access to capital, documenting land, designing focused cross-border policies, and strategically employing trade policy. These reforms aim to leverage Africa's natural assets for economic growth and integration into global value chains.
Why It's Important?
Enhancing Africa's agricultural export performance is crucial for the continent's economic development and integration into the global economy. By addressing institutional failures and implementing targeted reforms, Africa can improve its competitiveness and secure broad-based economic growth. The proposed reforms could increase access to finance, formalize land rights, and encourage value addition, ultimately boosting Africa's share in global agricultural trade. This shift towards an agriculture-led development agenda is essential for improving Africa's economic position both domestically and internationally.
