Market Structure

Africa’s agricultural sector has the potential to drive important economic growth and development in the region. Agriculture accounts for 16 percent of Africa’s annual GDP and employs over half of its labor force, particularly youth and women workers. Despite the sector’s vast potential, however, African agriculture remains hampered by low resource productivity and little or no value addition; shocks like climate change, ongoing regional and local conflict, and supply and market disruptions resulting from the COVID-19 pandemic and global conflicts have only exacerbated these challenges.

More than half of the adult population in Uganda is employed in the agriculture and fishery industries, with an estimated 36 percent engaging in subsistence agriculture. Despite the importance of agriculture to Uganda’s economy, however, the country continues to suffer from high rates of food insecurity. Small-scale farmers are often particularly hard hit by the cycle of poverty and hunger due to the vulnerability of their livelihoods to price shocks, extreme weather events, and other disruptions.

The recent attacks of Yemen-based Houthi rebels on ships in the Red Sea have paralyzed shipping through the Suez Canal, forcing exporters in the Black Sea region and elsewhere to consider alternative—and more costly—shipping routes. In early January, A.P. Moller-Maersk A/S, the world's second-largest container ship company, announced it would suspend shipments through the Red Sea. Trade volumes in the Suez Canal are down an estimated 40% since the attacks began.

Africa south of the Sahara has been, and will continue to be, particularly hard hit by the impacts of the Russia-Ukraine conflict on global food and fuel prices, according to a new ebook from IFPRI. The book, based on IFPRI’s Ukraine blog and research brief series, provides a regional and country-level overview of the impacts of the ongoing crisis on SSA. It also concludes with policy recommendations and lessons learned to help the region, and the world, better respond to future food system shocks.

An innovative market system development (MSD) intervention in Mozambique has helped increase use of agricultural inputs and access to critical market information among smallholder farmers, according to a new policy brief released by IFPRI. These results extended beyond the direct beneficiaries as well, highlighting the potential for such interventions to provide wide-ranging benefits.