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 decreased from 8% in 1960 to 4% in the early 2020s. Policymakers have largely neglected agribusiness export performance,
focusing instead on manufacturing. To address this, four key reforms are proposed: improving access to capital, documenting land, designing targeted cross-border policies, and using trade policy for upgrading. These reforms aim to leverage Africa's natural assets for economic growth and integration into global value chains. Successful examples include Kenya's avocado export strategy and Mali's mango export policy.
Why It's Important?
Enhancing Africa's agricultural export performance is crucial for the continent's economic development and integration into the global economy. The proposed reforms could significantly boost Africa's agribusiness sector, which is a major contributor to GDP and employment. By improving access to capital and formalizing land rights, African countries can overcome barriers to investment and scale production. Targeted trade policies can encourage value addition and increase competitiveness in global markets. These changes are essential for achieving broad-based economic growth and improving Africa's position in global value chains.
