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. To reverse this trend, four reforms are proposed: improving access to capital, documenting land, designing focused cross-border policies, and using trade policy for upgrading. These reforms aim to leverage Africa's natural assets for broad-based economic growth and stronger global value chain integration.
Why It's Important?
Africa's agribusiness sector holds untapped potential for structural transformation, with abundant land and favorable climate conditions. Enhancing access to finance, formalizing land rights, and implementing targeted cross-border initiatives can improve competitiveness and export performance. Trade policy can encourage domestic processing and value addition, reversing the imbalance of raw material exports. A decisive policy shift towards an agriculture-led development agenda is essential for Africa to improve its economic position globally.
Beyond the Headlines
The proposed reforms address institutional failures that have constrained Africa's agribusiness sector. By focusing on finance, land rights, cross-border policies, and trade policy, Africa can use its natural assets to secure economic growth and integration into global markets. The agenda emphasizes the importance of agriculture in driving development and highlights the need for strategic investments and policy changes to unlock Africa's agricultural potential.
