Despite the increased focus on new areas such as technology that are fuelling Africa's rapid growth, agriculture remains the best bet to pull millions out of poverty, a new report has found.
Africa's growth needs would be better served by focusing on food staples, the International Food Policy Research Institute says.
The report is based on case studies of 10 African countries that sought to determine how agriculture could better contribute to poverty reduction and improved food security.
The study found that agriculture-led growth has the greatest impact on reducing absolute poverty, especially in sub-Saharan Africa where the majority are farmers.
The Food and Agricultural Organisation (FAO) puts the number of those directly involved in agriculture on the continent at 61 per cent.
Given that most of these are subsistence farmers, encouraging the growing of staple crops such maize, bananas and rice could go a long way in eliminating poverty, it said.
According to the institute, while export crops such as coffee and tea may have higher value than food crops and other staples such as livestock products, they do generate economic growth as effectively.
Tanzania’s livestock sector for example contributes around 12 per cent to the country’s Gross Domestic Product. The vast majority of the livestock, about 99 per cent, belongs to small owners, with a full third of the poor owning livestock.
In contrast, big farms and ranches in the country constitute only around one per cent of total livestock ownership, according to FAO data. Focusing on Tanzania’s livestock sector would therefore contribute greatly to reducing the country’s poverty levels, while at the same time stimulating sustainable economic growth, the study noted.
More cost effective
The same can be said of Mozambique’s roots and all staple foods in Zambia and Nigeria. According to the report, in Rwanda, growth driven by maize or pulses is 30-60 per cent more effective at reducing poverty than growth driven by export crops.
There is also good news for Africa’s agricultural policy makers. Investment in staples may be more cost effective in driving growth when compared to investment in non-agricultural sectors.
When quantified, returns achieved from non-agricultural growth (weighed in contribution to total GDP) would have to be significantly higher than those from agricultural growth in order to have better effectiveness at poverty reduction.
African nations should thus look into investing public resources in those agricultural sub-sectors with strong linkages to the poor, and to the overall economy.
Further examples are adduced: in Africa, 40 per cent of all root and tuber crops are produced by Nigeria, which is also the largest cassava producer in the world, with nearly 90 per cent of its production being for domestic consumption.
Cassava farming therefore plays a huge role in the lives of the country's mostly poor farmers and in the overall economy. As such, promoting growth in the root and tuber sub-sector could go a longer way in providing long term solutions to rural poverty.
Despite underscoring the importance of agricultural growth in eliminating poverty in Africa, the report also notes that increased growth in other non-agricultural sectors is necessary for faster urban development.
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