Agriculture in sub-Saharan Africa

Many governments and donor countries are beginning to tap into the vast potential of agriculture in sub-Saharan Africa by making new investments in the sector to enhance economic opportunities and increase food security.

QUICK FACTS:

• According to the World Bank, growth in agriculture is twice as effective in reducing poverty as growth in other sectors.
• In December 2008, the European Union (EU) voted to use €1 billion (approximately $1.5 billion) in unused budget money for agricultural initiatives in developing countries.
• In Ethiopia, the World Bank's International Development Association (IDA) has invested about $500 million since 1991 to build roads that will connect farmers to local markets; since 1995 Ethiopia's road network increased from under 23,500 km of roads to over 37,000 km in 2005.

Malawi: Affordable fertilizer increases agricultural productivity

In 2005, almost five million of Malawi's 13 million people were in need of emergency food aid; by 2007, Malawi produced a maize surplus of over one million tons thanks in large part to a new fertilizer and seed subsidy sponsored by the Malawian government, with help from the UK Department for International Development (DFID). The extra production in 2007 was valued at $100 -$160 million, far exceeding the $70 million cost of the seed and fertilizer subsidy.

Burkina Faso: Investment in irrigation and infrastructure increases incomes

In Burkina Faso, where 80 percent of the population lives in rural areas and farm activities accounted for 31% of GDP in 2004, the World Bank's International Development Association (IDA) has financed irrigation schemes in rural communities and invested in infrastructure like roads and cold- storage facilities at airports. Rural farmers are now able to irrigate their land in the dry season, and grow high-value export crops like tomatoes and onions.

In approximately 3,000 villages, the amount of irrigated land has doubled, and household incomes in the villages have increased by 30%

Madagascar: Agricultural business centres increase farmers' market access

Thanks to a $17.7 million MCC investment in the Agricultural Business Investment Project, farmers in Madagascar are seeing increased production and increased incomes. The 6 Agricultural Business Centres in Madagascar help farmers to identify markets, form associations that help them meet greater demands, and provide technical assistance to tackle challenges like post-harvest storage. One cooperative in the Menabe region produced 600 tons of lima beans in 2007, which brought an overall increase of $200,000 in net income throughout the value chain as the beans were exported to Mauritius. The 78 farmers of the producing cooperative each earned $940, $300 above the average household income in the region.