Transforming African

agriculture

The challenge
Agriculture is a major source of income in Africa; however, Source: FAOstat; World Bank; IFPRI; IITA, ICCO,

10

20

30
AfDB“Agriculture and Agribusiness Strategy 2015

Cassava Maize Rice Soy Cocoa Beef Milk

or animals) 2013
Average yields across Africa versus best practice
1; Tonnes/(hectares

Relatively low productivity...

% of GDP
% of total employment

Agriculture as a share of employment and GDP; % 2014

potential has resulted in persistent poverty and deteriorating food security

Agricultureis a major source of income in Africa; however, untapped
-2019”, Dalberganalysis
Notes: (1) Best practices = average of top 10 countries in the world by yield in the commodity; (2) Out of Africa;

Africa Best practice

Imports vs Exports2; billion USD

exports
Africa’s share of cocoa, %

... rapidly rising imports, and poor performance in

% people: 49% 57% 53% 23% 44% 31% 49%

Millions of Africans living on less than $1.25/day; 2014

Preliminary-for discussion only

ecological zones in Africa
...resulting in widespread poverty across major agro
-
2

untapped agricultural potential has contributed to persistent

poverty and deteriorating food security. A third of African as in the horticulture sector in Kenya, or in the rice sector in
children live in hunger. Collapsing commodity prices for a a number of countries in West Africa.
broad range of natural resources are creating an increasing Preliminary- for dis
imperative for African nations to diversify their exports and Agricultureis a major source of income
The lessons learned are framing the necessary strategies
reduce current account deficits. At the same time, increased for achieving successful agricultural ‘transformation’ in areas
food demand and changing consumption habits driven by potential has resulted in persistent po
like policy interventions to liberalize input markets, innovative
demographic factors such as urbanization are leading to financing, infrastructure development (irrigation, storage,
rapidly rising net food imports, which are expected to grow and rural roads), and land tenure reforms.
from $35 billion in 2015 to over $110 billion by 2025. The
Source: FAOstat; World Bank; IFPRI; IITA, ICCO,

or animals) 2013

0%

25%

50%

75%
AfDB“Agriculture and Agribusiness Strategy 2015

Average yields across Africa versus best practice

1; Tonnes/(hectares

Relatively low productivity...

Africa India Thailand Vietnam Brazil China

% of GDP
% of total employment

Agriculture as a share of employment and GDP; % 2014

potential has resulted in persistent poverty and deteriorating food security

Agricultureis a major source of income in Africa; however, untapped
-2019”, Dalberganalysis
Notes: (1) Best practices = average of top 10 countries in the world by yield in the commodity; (2) Out of Africa;

Imports vs Exports2; billion USD

exports

% people: 49% 57% 53% 23% 44% 31% 49%

Africa’s share of cocoa, %

... rapidly rising imports, and poor performance in

Millions of Africans living on less than $1.25/day; 2014

Preliminary-for discussion only

ecological zones in Africa
...resulting in widespread poverty across major agro
-
2

top 15 imports are all commodities which are already Agriculture as a share of employment and GDP; % 2014

produced on the continent. The response

In the transformation of African agriculture, exports An Agricultural Transformation % of totalAgenda
employment(ATA) for Africa
% of GDP
constitute potential agribusiness markets worth requires formulating a collective strategy that incorporates a
Preliminary- for discussion only
upwards of $100 billion for Africa, while promising to broad set of actors, many of whom the Bank brought together
Agricultureis a major source of income in Africa; however, untappe
deliver food security and broad-based income growth. at the ‘Feed Africa’ conference in Dakar in October 2015.
potential has resulted in persistent poverty and deteriorating food
Transformation is beginning to occur in Africa across a Underpinning the vision of an inclusive and competitive
diverse range of agricultural commodity value chains, such African agribusiness sector are four specific goals: ending
Relatively low
...resulting in productivity...
widespread poverty across
Average
Average yields across
yields across
ecological
Africa versus
Africabest
zones
practice
versus
in Africa
1; Tonnes/(hectares
best
Agriculture as a share of employment and GDP
Agriculture as a share of employment and GDP; % 2014 or animals)Tonnes/(hectares
practice; 2013
Millions of Africans living on less than
or animals) 2013$1.25/day; 201
% 2014
30
75%
20
50%
% of total employment
10
25% % of GDP
0
0% Cassava Maize Rice Soy Cocoa Beef Milk
Africa India Thailand Vietnam Brazil China Africa Best practice

% people:
Notes: (1) Best practices 49% of top
= average 57% 53% in 23%
10 countries the world44%
by yield 31%
in the
Source: FAOstat; World Bank; IFPRI; IITA, ICCO,
AfDB“Agriculture and Agribusiness Str
1
... rapidly rising imports, and poor perfo
 Preliminary - for discussion only

ts partners will pursue an agenda to transform a selection of

l commodities and agro-ecological zones
Commodity value chains and agro-ecological
zonesvalue
Commodity targeted byagro-ecological
chains and the Agricultural Transformation
zones targeted by the Agricultural
Transformation Agenda Agenda
Wheat for Africa
Wheat and dryland
pulse systems

Rice Sufficiency
Agr iculture Transfor mation Par tnership for Afr ica

Improve rice Food Secure Sub-humid Zone

production & value- Sahel Maize & soybean
addition Sorghum, Millet. production, dairy &
Cowpea, Livestock poultry

• Improved agribusiness environment

Cassava Intensification • Inclusivity, sustainability, and nutrition
Modernize cassava
production & processing
Crosscutting • Coordination and partnership.
Interventions
Tree plantations
Horticulture
Fish farming Transforming an initial set of key value chains / agro-
ecological zones will require approximately $280-340 billion
investment over the next 10 years. Such an investment
would likely create new markets worth $55-65 billion per
annum by 2025.

ation Agenda.
4
African Agricultural Transformation (TAAT)“ proposal; Dalberg analysis
poverty; ending hunger and malnutrition; making Africa a The role of the African Development Bank
net food exporter; and moving Africa to the top of
export-oriented value chains where it has comparative The Bank will play a key role in catalyzing agricultural
advantage. transformation, in three main ways:

An initial set of agricultural commodities and agro-ecological - orchestrating at the sector level the impact-oriented
zones have been identified as initial lead areas for borrowing plans and an evidence-based
investment: implementation plan for transformation, in the form of
an ‘Agricultural Transformation Partnership for Africa’
- Achieving self-sufficiency in key staples (rice, wheat, - designing and leading the operations in areas that are
fish) both critical to drive transformation and for which the
- Moving up the value chain in key export oriented Bank is able to leverage its comparative advantage
commodities (cocoa, coffee, cotton, cashew, cassava - scaling and replicating the activities and programs of
and horticulture) partners that have demonstrable success and the
- Creating a food-secure Sahel (sorghum, millet, potential to play a key role in country and commodity
cowpea, livestock) specific transformation.
- Realizing the potential of the Guinea Savannah (maize,
soybean, dairy, poultry) The AfDB intends to increase its annual investments in www.afdb.org / c.ojukwu@afdb.org
agriculture from an average of $612 million a year from
The transformation will be based on six sets of enablers: 2010-2014 to $2.4 billion a year by 2025. It will
substantially increase the capital available to catalyze
• Better developed value chains agricultural transformation both through its own investment
• Increased hard and soft infrastructure activities, and through mobilizing investments from other
• Increased agricultural finance public sector and private sector partners.
March 2016

Intended results by 2025

a further 150 million people adequately fed
100 more million people lifted out of poverty
190 million hectares of land with restored productivity