August 1, 2022
It is widely known that agriculture remains one of the most important economic sectors for many African countries. According to the IMF, agriculture in Africa employs more than half of the labor force and provides a livelihood to small-scale farmers. Furthermore, as per the Africa Agriculture Status Report 2020, smallholder farms constitute approximately 80% of all farms in Sub-Saharan Africa and employ around 175 million people.
For most African countries, agriculture contributes anywhere between 20 – 60% of their Gross Domestic Product (GDP) and about 30% of the value of their exports. There is significant variation in the relative contribution of agricultural sectors, depending on the size of African economies. For instance, in Botswana and South Africa, agriculture’s contribution to GDP is below 3%, whereas in Chad, agriculture contributes to more than 50% of its GDP. In Kenya, the economy is significantly dependent on the agriculture sector which directly contributes to about 34% of the GDP and, indirectly, a further 27% through manufacturing, distribution, and other service-related sectors.