Global challenges in agriculture and the World Bank's response in Africa

Abstract

AbstractA country's economic, environmental and social well‐being is intricately linked to a healthy, well‐performing agricultural sector. Across Africa, south of the Sahara, agriculture is the predominant sector in the economies of most countries accounting for between 30 to 40 percent of gross domestic product, and the sector is a leading source of jobs for over two‐thirds of Africa's population. With an abundance of labor, land and untapped water, Sub‐Saharan Africa has the resources necessary for a massive expansion of agricultural production. Notwithstanding these advantages, over the last 40 years Africa has been steadily losing its share of the global agricultural market. Today, Thailand exports more food products than all of Sub‐Saharan Africa combined. The “Green Revolution” that transformed tropical agriculture in Asia and Latin America largely bypassed Africa. A confluence of factors – increasing prices for African agricultural products, booming urban food markets, many opportunities for expanding irrigated area, greater interest by development partners, improved policy environment, technological innovations, rising private sector interest, framework for climate‐smart agriculture, and improved infrastructure – present a golden opportunity for African agriculture to realize its full potential. Responding to the challenges, the World Bank is scaling up its support for African agriculture. The medium‐term plan is to scale up lending to US$3 billion a year, with ambitious targets in key thematic areas – irrigation, land administration, access to technology, inputs, financial services and markets, and climate‐smart agriculture – so that Sub‐Saharan Africa can benefit fully from the transformative opportunity. Greater South‐South learning and collaboration, and strengthening of African institutions and building capacity are all needed. Agriculture is the pathway to ending poverty and boosting shared prosperity in Sub‐Saharan Africa, backed by improvements in education, health, nutrition and sustainable management of natural resources among others. The prospects for success have never been better.