Types of Research
- (-) Remove West Africa Region and Selected Countries filter West Africa Region and Selected Countries
- (-) Remove Political Economy & Governance filter Political Economy & Governance
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- (-) Remove Agricultural Productivity, Yield, & Constraints filter Agricultural Productivity, Yield, & Constraints
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This brief presents selected material from the Fourth African Agricultural Markets Program (AAMP) policy symposium, Agricultural Risks Management in Africa: Taking Stock of What Has and Hasn’t Worked, organized by the Alliance for Commodity Trade in Eastern and Southern Africa and the Common Market for Eastern and Southern Africa that took place in Lilongwe, Malawi, September 6-10, 2010. We draw almost exclusively from Rashid and Jayne’s summary, “Risk Management in African Agriculture: A review of experiences.” This article summarizes across the background papers, with major findings grouped into three broad categories: cross cutting, government-led policies, and modern instruments.
In the decades following independence in 1960, Côte d’Ivoire stood out as a shining example of economic growth in Sub-Saharan Africa. GDP increased at an annual average of 8.1 percent from 1960 to 1979, led largely by cocoa and coffee exports. Low export earnings from a fall in world cocoa prices and a heavy public debt burden halted this growth in the 1980s, followed by civil conflict beginning in 1999. Three decades of focus on export crops rather than food crops also left Côte d’Ivoire with a growing food deficit. This literature review examines the state of agriculture in Côte d’Ivoire and the history of government involvement in the agricultural sector. We find that while the country is poised to reemerge from a decade of economic stagnation and civil war after signing the Ouagadougou Political Accord in 2007, the political economy of Côte d’Ivoire is still heavily dependent upon and influenced by the production of cocoa. Cocoa is the top export, and cocoa export taxes provide one of the largest sources of revenue for the Government of Côte d’Ivoire (GoCI). Cocoa is not heavily dependent on fertilizer inputs and growers have increased production by expanding cropland. The small contribution of fertilizer to the production of this essential crop may help explain the GoCI’s low priority on expanding fertilizer production and use. Given that a large part of government revenue comes from the export of cocoa and coffee, the government has chosen to focus resources on crops that increase revenue. Even with the food riots in 2008, the GoCI has not made increasing domestic food production an important focus of agricultural policy.
Agriculture is the most important sector in the Ghanaian economy. In 2008, it accounted for over 32 percent of GDP and employed over half of the labor force. Economic development in Ghana has historically been dependent on the success of agriculture, particularly the main export crop, cocoa. Despite the sector’s importance, Ghanaian farmers have one of the lowest fertilizer application rates in Sub-Saharan Africa. The combination of a dominant agricultural sector, nutrient-poor soils, low fertilizer use among smallholder farmers, and the absence of locally produced inorganic fertilizers has prompted the government of Ghana (GoG) to intervene in the fertilizer market. This literature review examines the state of agriculture in Ghana, the history of the fertilizer market, and the current market structure. We find that the GoG has been a major actor in the inorganic fertilizer market over the past 50 years, from exercising total control of the domestic supply chain in the 1960s and 1970s to more indirect interventions in later years. In recent years, agricultural growth has averaged 5.5 percent as compared to 5.2 percent growth in the rest of the economy. However, most of this growth has been due to land expansion and favorable weather conditions rather than increased productivity. Increased fertilizer use among smallholder farmers has the potential to contribute to future agricultural growth and continued economic success.
Governments in Sub-Saharan Africa have often intervened in the fertilizer sector to promote more optimal levels of fertilizer use. Many West African nations, in particular, have inherited a legacy of government involvement, stemming from French colonial policies that encouraged state participation in the agricultural sector. Senegal's colonial past has influenced much of its present economy, from its principal export crop (peanuts) to its major food import (rice). The colonial legacy includes a relatively high degree of urbanization; limited domestic industrial capacity; institutions, policies, and agricultural networks focused on supporting a single export crop; and a history of state intervention into markets. After government intervention in the 1960s and 1970s, followed by a period of liberalization in the 1980s and 1990s, Senegal is again defining its agricultural policy. This literature review examines the state of agriculture in Senegal and the history of Senegalese agricultural policy in order to understand past and current trends in fertilizer usage. We find that Senegal continues to experience a high level of food price fluctuations as it imports increasing amounts of rice to cover its food deficit. Increased use of fertilizer, along with irrigation technology may help improve rice production and increase food security. To achieve this goal, the Government of Senegal (GoS) has embarked on several initiatives, notably the Agro-Silvo-Pastoral Law (LOASP) and the Grande Offensive Agricole pour la Nourriture et l’Abondance (GOANA), employing subsidies to increase fertilizer demand and making food sovereignty a national priority. In the coming years, GoS will need to determine what role the government should play in the agricultural sector, and what level of intervention can be sustained in the long-term.
Nigeria’s experience with fertilizer subsidy programs has been different than that of other countries in Sub-Saharan Africa. Nigeria is one of the only African countries capable of producing fertilizer domestically. But Nigeria is also large and densely populated. This makes national agricultural policy difficult due to logistical problems with implementation and the unique fertilizer needs of the various agro-ecological zones. This research brief discusses the effects of Nigeria’s input subsidy programs on maize production and fertilizer consumption. It focuses on the years 2000 to 2007, but also includes a discussion of Nigeria’s subsidy history from the early 1970s to 2009. Researchers have had difficulty studying Nigeria’s subsidy schemes due to a lack of data. In spite of decades of authoritarian, centralized leadership, Nigeria’s states have significant power to implement their own subsidies. This complicates any evaluation of a program’s effectiveness, in part due to the variety of subsidies at any given time, as well as inconsistent accounting practices.