Africa Region Working Paper Series No. 44

Modernizing Africa's Agro-Food Systems: Analytical Framework and Implications for Operations

Steven Jaffee, Ron Kopicki, Patrick Labaste and Ian Christie

Abstract

Agribusiness or agro-enterprise activity accounts for approximately one-fifth of the GDP for Sub-Saharan Africa and just under half of the region's value-added in manufacturing and services. Based on the experience of many middle-income countries, it is expected that the share of agribusiness services and manufacturing in GDP will rise to between 30 and 45% in the majority of African countries.

The promotion of agro-enterprise development can provide a catalytic force in poverty reduction in Africa, both directly and indirectly by: (i) reducing food costs and supply uncertainties and improving the diets of the rural and urban poor; (ii) generating growth, increasing and diversifying incomes, and providing widespread employment and entrepreneurial opportunities in both rural and urban areas; and (iii) inducing productivity gains by smallholder farmers and better integrating them into local, national, and international markets.

This paper sets out a strategy for World Bank Group assistance for support for agro-enterprise development and the more general modernization of agro-food systems in Africa. The paper draws lessons from past interventions in this field, denotes the comparative advantage of the Bank Group for work in this field, and identifies priority themes and leverage points for activity.

Full text of paper. (735KB, In Adobe Acrobat format. Requires Acrobat PDF viewer)