Value Chains

Increasing urbanization plays a major role in shifting patterns of food supply and demand and thus in transforming food systems. These transformations carry significant implications for the livelihoods of rural populations, presenting both challenges and opportunities. A new paper published in Food Security examines some of these impacts in Africa south of the Sahara (SSA) and South Asia, as well as the enabling environments needed to help rural communities benefit from the changes.

As the world continues to grapple with the ongoing presence of COVID-19, it has become clear that the pandemic’s impacts extend far beyond human health. Economic growth, markets and supply chains, poverty, and food security have all experienced ripple effects from the pandemic itself and the measures taken to stop the spread of the deadly virus. In Africa, the outbreak of COVID-19 coincided with the signing of the African Continental Free Trade Area (AfCFTA), leading to concerns about the potential negative impacts on free trade targets in the region.

Introduction

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.

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.