Scaling up agribusiness should be Africa’s next growth frontier

Africa’s economic performance over the past decade has been remarkable, having reached an average growth of 5 percent. If this growth is maintained, projections indicate Africa’s gross domestic product should increase approximately threefold by 2030 and sevenfold by 2050, outstripping Asia’s. Yet this growth has not translated to creating jobs or tackling inequalities.

Beyond growth, the continent needs transformation. The internal, external and historical reasons that its industrial potential has not been reached can be attributed mainly to the failure of policies, often imposed. Colonialism has left behind institutions and an infrastructure base designed to enhance extraction of Africa’s resources, as opposed to value addition.

Economic structural adjustment programmes have also had negative effects on technological accumulation, human capital development and the performance of manufactured exports.

Agricultural production is one of the most important economic sectors in the majority of African countries. About 75 percent of Africans rely on it for their livelihoods. History illustrates that agriculture, particularly the developed agribusiness and agro-industry sectors, has been the driver of economic growth in countries around the globe, from Brazil and China.

In Africa, agribusiness and agro-industries account for more than 30 percent of national incomes as well as the bulk of export revenues and employment. Scaling up agribusiness could be the next growth frontier. It could offer immediate value addition through commodity-based industrialisation that exploits forward and backward linkages with the rest of the economy. Such industrialisation could lift many rural dwellers out of poverty while creating jobs across the economy. READ MORE

Source: Business Report.  #IFAMAFRICA