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.

FAST 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 percent 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 percent.

Madagascar: Agricultural business centers 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 six Agricultural Business Centers 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.