Africa’s agricultural sector holds huge potential for improving lives and economies, but it remains underfunded and underdeveloped.
These are among the conclusions of a report by the Boston Consulting Group (BCG), in collaboration with the Paris Peace Forum, according to a report by Bizcommunity.
In 2022, African farms received just US$49 billion in investment — a quarter of the estimated US$200 billion needed to unlock the sector’s full potential.
The agricultural sector sustains 70% of Africans, most of them women, and contributes roughly 30% of the continent’s GDP. Despite this, African farmers receive only US$140 per year on average, compared with US$1 300 globally.
Limited irrigation, mechanisation, and other productivity constraints force Africa to import over US$27 billion in cereals annually — a figure projected to rise to US$110 billion by 2030 if investment gaps are not addressed.
“Investing in African agriculture is about more than feeding the continent. It’s about transforming Africa into a driver of global food security, resilience, and economic growth,” said BCG’s Younès Zrikem, a co-author of the report.
“Agriculture offers one of the most direct and impactful ways to reduce poverty, empower women, and build long-term climate resilience.”
Public spending on agriculture across Africa averages just 3% of government budgets, well below the African Union’s 10% target, with only Malawi and Ethiopia consistently meeting the benchmark. Private-sector investment represents only 3% of total funding, compared with 10% globally.
“Africa’s agricultural potential remains vastly under-leveraged, not due to lack of opportunity, but due to underinvestment,” said Olayinka Majekodunmi, another BCG partner.
“With the right incentives, blended financing, scalable innovations, and regional collaboration, we can unlock a new era of agricultural transformation — one that creates jobs, enhances food systems, and positions Africa as a global hub for sustainable development.”
