WEF_GrowAfrica_AnnualReport2014

2013 in Review 2013 in Review
THE LONG VIEW
Food insecurity and rising poverty makes inclusive
agriculture a priority for the rural and urban poor
Agricultural GDP Growth Rates
20
Ag GDP Growth
CAADP Target
15
Agriculture makes up 29.9% of Kenya’s economy, but
has not exhibited steady growth, undergoing significant
variations year-on-year and only on one occasion
reaching the 6% CAADP growth target. Roughly 40%
of the rural population is directly engaged in agriculture
as an economic activity, with a slight majority of that
agricultural labour force composed of men. Kenya’s
agricultural sector currently produces sugarcane,
maize, potatoes and bananas in significant quantities,
contributing 6% of Africa’s annual sugarcane
production. Kenyan agricultural public expenditure has
not met CAADP expenditure targets, hovering at only
4% of public expenditure since the 2000s.
Kenya comes in at 129th position in global rankings
and 12th out of 47 in sub-Saharan Africa for ease
of doing business. The country is particularly wellranked
with respect to obtaining credit but lags
in areas such as cross-border trade and contract
enforcement. Kenya is an attractive environment for
CAADP TARGETS
digital agribusiness services with a well-established
ICT cluster and 32.3 million mobile GSM connections
(more than two-thirds of the population), 11% of which
are 3G data connections.
For the Kenyan population of 45 million, poverty
actually increased during the 2000s and is now
estimated at over 43.4%. Malnutrition is relatively
low compared to other sub-Saharan countries with
16.4% of children underweight. Nonetheless, many
Kenyans are still food insecure, especially in rural and
slum areas of urban cities. Food takes up about 70%
of household budgets, such that when food prices
rise it creates agitation for higher wages, which in turn
weakens the country’s competitiveness. Ensuring that
economic growth in Kenya is shared with the rising
number of poorer households is critical to reversing the
trend away from reaching the Millennium Development
Goals, particularly for the 34 million people living in
rural areas.
10
5
0
-5
-10
-15
-20
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Source: ReSAKKS 2014 - www.resakss.org
SNAPSHOT OF AGRICULTURAL ECONOMY
Rural Population
Total population:
45,546,000
2009 2011
Population Economically Active in Agriculture
Total:
14,512,000
16.4% 43.4%
Child malnutrition:
% of children under 5 underweight
(World Development Indicators, 2009)
Poverty:
% living below $1.25/day
(IFPRI Harvest Choice, 2005)
Rural population:
34,065,000
48.5% 51.5%
Public agriculture expenditure share in total public expenditure 1990 - 2010
Source:
FAO-STAT 2014 - http://faostat.fao.org/
Source:
FAO-STAT 2014 - http://faostat.fao.org/
12
10
Kenya
CAADP Target
Ease of Doing Business - Rank of 189 Countries
Overall 129
Starting a Business 134
Top 10 Crops by Production (tonnes)
5,822,633 Sugarcane
3,600,000 Maize
8
Getting Credit 13
2,915,067 Potatoes
6
4
Protecting Investors 98
Trading Across Borders 156
Enforcing Contracts 151
1,394,412 Bananas
893,122 Cassava
859,549 Sweet Potatoes
2
EASY 50 100
150
HARD
845,903 Pulses
441,754 Wheat
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: www.resakss.org
2010
Source:
World Bank 2014 - http://www.doingbusiness.org/
369,400 Tea
166,627 Sorghum
Source:
FAO-STAT 2014 -
http://faostat.fao.org/
88
Kenya
Kenya
89