Agricultural Development

Agricultural mechanization has many benefits for developing countries: It raises productivity and lowers costs, makes supply chains more efficient, and is more environmentally friendly than traditional farming techniques. Mechanization is key for Africa’s agricultural transformation, which must adapt to the needs of urbanizing populations, increased food demand, and rising rural wages.

This post originally appeared on IFPRI.org .

By Francesca Edralin

Ethiopia’s rapid economic and agricultural growth over the past two decades is a well-known African success story. In 2000, Ethiopia ranked as the second-poorest country in the world , according to Oxford University’s Global Multidimensional Poverty Index. Then, thanks in large part to sustained investments in the agricultural sector, the economy grew and poverty fell. Ethiopia was the third-fastest growing country in the world from 2000 to 2018 based on GDP per capita, according to World Bank data.

This piece originally appeared on IFPRI.org .

The COVID-19 pandemic has crippled a number of African agricultural exports, while dependency on food imports and lower purchasing power across much of the continent threaten to push millions more into food insecurity and poverty. A Sept. 17 IFPRI policy seminar , organized with the support of USAID, explored the interaction of the pandemic’s macroeconomic and microeconomic effects, and how Africa must grapple with global and regional markets in order to recover economically.

By Sara Gustafson

Over the last decade, Ethiopia’s dairy sector has expanded rapidly. Urban consumers have significantly increased the amount of money they spend on dairy products, and the number of domestic dairy processing firms has tripled to meet the growing demand. All of these signs point to significant structural transformation, which plays an important role in reducing poverty and increasing welfare in developing countries. However, a new study finds that despite its recent strong growth, Ethiopia’s dairy sector still faces some important hurdles.

Recent occurrences in the global arena, such as volatile commodity and resource markets, suggest the urgent need for African countries to develop policy options that can mitigate resource constraints and their attendant consequences. The transformation and development of Africa’s agricultural sector, especially the development of functional value chains, hold huge potentials for African economies through employment creation, income generation, and improvement of household livelihoods.