AFRICA AGRICULTURE STATUS REPORT 2016

Table 7.1: Indicative investments to transform key value chains in Africa (US$ Billions)
Value Chain
Value Chain Development Estimates
Production Value addition Total
Rice ~18–22 ~3–4 ~21–26
Cassava ~2–2 ~2–3 ~4–5
Wheat ~22–27 ~16–20 ~38–47
Cotton ~0.4–0.5 ~1–1.2 ~1–2
Horticulture ~5–6 ~4–5 ~9–11
Aquaculture ~1–1 ~19–23 ~20–24
Tree crops ~14–17 ~9–11 ~23–28
Sahel Region ~6–7 ~9–11 ~15–18
Guinea Savannah ~42–52 ~26–32 ~68–84
Total ~110–135 ~90–110 ~200–250
Source: African Development Bank Strategy for African Agricultural Transformation (2016–2025)
partly to blame for the continent’s inability to feed itself, and
to stimulate rural entrepreneurship. Rural infrastructure
services play a critical role in poverty reduction, economic
growth, and empowerment of Africa’s rural poor (World
Bank, 2001). However, it is not enough to meet the demand
for services by simply constructing a road, installing a
water pump, providing rural electricity, or planting trees
for fuel wood. Countries and rural communities should
not only provide physical infrastructure, but also ensure
that services are continuously provided on a sustainable
basis at appropriate levels of quality and affordability. For
example, it is not only crucial to significantly scale up power
availability, but also affordability and typology of power,
especially in rural communities.
The infrastructure deficits in Africa are well known. Most
African countries suffer from limited transport infrastructure,
both in quantity and quality, to varying degrees by country.
Poor rural accessibility restricts opportunities to trade in
both local and international markets. It raises the costs
of production and distribution, reduces profitability from
the sale of produce, and constrains production yields.
The economic impacts of improved rural accessibility are
cumulative and far-reaching. Better access to markets
makes it worthwhile for producers to modernize their
farming methods through mechanization, increased use
of fertilizers, and planting of higher-yielding varieties,
or even different higher-value crops. These, in turn,
increase demand for farming inputs, the provision of
which creates more rural employment. A limited enabling
environment discourages private sector engagement into
bankable transport projects, in ports, aviation and railways.
Institutional and technical capacity has also been another
challenge for the transport sector in Africa. While notable
progress has been achieved in certain sub-sectors in
certain countries, the overall capacity is still limited.
Electricity has important applications in agriculture that are
central to fostering investment in the sector and promoting
performance and growth. The state of especially rural
power in Africa has implications for the extent of farmland
irrigated, value addition to farm produce in support of
industrialization, and the shift to GVCs, post-harvest
loss reduction, etc. Moreover, animal and tractor power
are severely constrained in African agriculture, making
the sector even more reliant on manual methods, which
in turn, severely limits the amount of land that can be
cultivated. This reduces the timeliness of farm operations
and limits the efficacy of essential operations such as
cultivation and weeding, thereby reducing crop yields and
sector performance. Access to modern forms of energy is
important for the rural poor, as it enables them to enhance
their production and improve their household incomes,
expenditure, educational outcomes, and standards of
living.
Africa has about 9 percent of the world’s fresh water
resources and 11 percent of the world’s population. Yet, SSA
faces numerous water-related challenges that constrain
economic growth and threaten peoples’ livelihoods. African
agriculture is mostly based on rainfed farming, and less
than 10 percent of cultivated land is irrigated. There is
substantial inter and intra-annual variability of all climate
and water resources characteristics. The impact of climate
change and variability is, thus, pronounced. The main
source of electricity is hydropower, which contributes
significantly to the current installed capacity for energy.
Continuing investment in the last decade has increased the
amount of power generated (UNWWAP, 2016). Solutions
to the challenges of water for energy and food security are
hindered by a big gap in water infrastructure and limited
water development and management capacity to meet the
demands of a rapidly growing population.
152 AFRICA AGRICULTURE STATUS REPORT 2016