Input Markets

While fertilizer use throughout Africa south of the Sahara remains low, Kenya has seen significant steady growth in fertilizer use in recent years. According to a paper published by Michigan State University, USAID, and the International Fertilizer Development Center (IFDC), between the early 1990s and 2010, national fertilizer use doubled in Kenya. Importantly, this increase stemmed from smallholder farmers purchasing fertilizers at commercial prices rather than through input subsidy programs. In addition, maize yields rose by over 18 percent during the same period.

Digital technology took center stage at last week’s 2016 World Economic Forum on Africa , held in Kigali, Rwanda from May 13-15. The theme of the forum was “Connecting Africa’s Resources through Digital Transformation,” a topic that is becoming more and more important as Africa’s growing population continues to put pressure on the region’s agricultural sector, food supply, and natural resources.

One of the first steps in increasing smallholder farmers’ market access is ensuring that rural areas have adequate transportation infrastructure to physically move crops from farms to markets. Improved rural roads can reduce transportation costs and the cost of agricultural inputs, thus increasing agricultural productivity; roads can also help integrate producers into more lucrative national and regional markets, leading to greater trade and reducing price shocks caused by local conditions.

Focusing on agricultural growth, particularly that of smallholder farmers, can help countries in Africa south of the Sahara achieve broader economic and development objectives, including poverty reduction, says a new open-access book prepared by the United Nations University (UNU-WIDER) and published by Oxford Press.

Agricultural growth can stem from a multitude of factors, including increased investment in inputs and rural infrastructure, expanded land dedicated to cropping, a more productive workforce, and favorable prices on local and international markets. Over the past decade, Ethiopia has experienced strong agricultural growth due to a number of these factors, according to a new research note and related working paper from IFPRI’s Ethiopia Strategy Support Program ; however, the country also faces a number of challenges to continued growth in the future.