Value Chains

Creating opportunities to more effectively link farmers in Africa south of the Sahara with local, regional, and global markets has become a key development focus in recent years. However, questions remain about the impacts that increased agricultural commercialization may have on household food consumption and food and nutrition security. A recent article in Food Security examines such impacts in Ghana, Tanzania, Nigeria, and Zimbabwe and finds both positive and negative trade-offs to increased market integration.

Over the past few decades, Uganda’s dairy sector has transformed from mostly subsistence activities into a dynamic and modern industry—a shift enabled by government initiatives, private sector investments, and the introduction of better technologies and practices. But the industry still faces challenges, particularly in establishing a market for high-quality milk.

Food systems play an important role in shaping our diets. Recently, there has been growing attention to food systems transformation, which involves changing different components of global food systems to make nutritious foods more accessible to consumers. At the 2021 UN Food Systems Summit, more than 100 countries pledged to transform their food systems, a clear recognition of the importance of healthy diets in preventing all forms of malnutrition worldwide.

Malnutrition—including undernutrition, micronutrient deficiencies, overweight, obesity, and diet-related non-communicable diseases (NCDs)—poses a staggering challenge to health, food security, and economic growth outcomes around the world. In Ghana, an estimated 256.1 million people experienced hunger and 240 million were undernourished in 2018. At the same time, rates of obesity and diet-related NCDs in the country have risen significantly—from just 10 percent of Ghanaian adults in 1993 to 40 percent in 2015.

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.