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Working Paper 193 - Large Scale Agribusiness Investments and Implications in Africa- Development Finance Institutions' Perspectives


Agriculture is the dominant source of livelihood in Africa, especially in low-income rural areas. About 70% of the population is directly employed in the sector, and it accounts for approximately 30% of the region’s gross domestic product (GDP). Therefore growth in agricultural productivity is likely to have a direct impact on economic growth with strong effects on poverty. Furthermore, agricultural productivity growth resulting from increased investments (both public and private), when coupled with input and output market development, can set the stage for the same structural transformation of agrarian economies that has immensely benefitted other developing regions, most recently Southeast Asia.

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