Trade

This post first appeared on Trade for Development News and the ReSAKSS blog.

Despite longstanding recognition of the benefits of trade and the importance of improving competitiveness, Africa is performing beneath its potential in global and regional agricultural markets.

Crop yields in Africa south of the Sahara are generally low, in large part because of low fertilizer use. A recent study of six countries in the region showed that only 35% of farmers applied fertilizer. There are many possible reasons why farmers do not use fertilizer. They may be unaware of its effectiveness; or have degraded soils that do not respond to fertilizer; they may not have the cash to purchase it; or unpredictable rainfall may make such investments risky. Local fertilizer prices may also cut into potential profits for many farmers.

This piece originally appeared in IFPRI.org .

BY ANTOINE BOUËT, DAVID LABORDE, FOUSSEINI TRAORÉ AND SWATI MALHOTRA

Agricultural trade can play a critical role in countries’ economic development and overall food security. While Africa’s share in both global and regional trade has increased in recent years, it remains below optimal levels – and below its great potential.

In late March, heads of state from 44 African countries met in Kigali, Rwanda to sign the framework agreement forming a new African Continental Free Trade Area (AfCFTA) . If the agreement is ratified by all 55 member states of the African Union, the AfCFTA would establish one of the largest free trade areas in the world, covering over 1.2 billion people and $2.5 trillion in GDP.