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Book (series)Agricultural policy incentives in sub-Saharan Africa in the last decade (2005–2016)
Monitoring and Analysing Food and Agricultural Policies (MAFAP) synthesis study
2018Also available in:
No results found.The study summarizes the results emerging from the 2017 update of the Monitoring and Analysing Food and Agricultural Policies (MAFAP) indicators for the 2005-2016 period for 14 sub-Saharan African countries. These indicators - comparable across commodities, countries and years - are commonly used to assess the extent of policy support in agriculture. They measure the effect of trade and market policies and inefficiencies on the degree of price incentives faced by farmers in key commodity value chains, as well as the level and composition of public expenditures in support of the agriculture sector. Despite results being very heterogeneous across countries and commodities, aggregate figures indicate that price incentives to agriculture are overall increasing across the period. Policies focused on supporting domestic production, through import tariffs and price support, are likely to be the main drivers of such a trend, following the food price crises period (2007–2011) when policy-makers were mainly concerned about consumer protection. Despite that, market inefficiencies still persist as a source of price disincentives to farmers and a major constraint on agricultural development. Consistently, public expenditure indicators confirm that direct budget transfers in support of producers, mainly in the form of input subsidies, continue to represent the largest part of agriculture expenditure in most countries. In general terms, only a few countries increased the share of agricultural expenditure within total public budgets in 2015. Expenditures on research and knowledge dissemination are overall stagnant or declining. Food crops continue to dominate public budgets while spending on cash crops or “innovative” products as well as on value chain integration and commercialization remains limited. Some efforts to convert resources that were previously allocated to input subsidies into investments in agricultural and rural infrastructures are seen. -
Policy briefUnlocking public expenditure to transform agrifood systems in sub-Saharan Africa 2022
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No results found.This policy brief highlights the main challenges of public spending on food and agriculture in selected sub-Saharan Africa (SSA) countries. Public spending – or expenditure – on food and agriculture is widely accepted as the most cost-effective strategy to drive structural transformation and poverty reduction in developing countries. So much so that back in 2003, countries in the African Union stressed agriculture as an engine for socioeconomic growth, and committed to allocate 10 percent of their national budgets to the sector. Almost 20 years later, most countries out of the sixteen analysed in the FAO study on ‘Public expenditure on food and agriculture in sub-Saharan Africa: trends, challenges and priorities’ still struggle to hit this development target. What, therefore, is stopping countries from spending more on the sector? Rather than a lack of political will, various factors such as constrained public budgets, limited fiscal space, and the burden of debt repayments are obstacles to higher public spending on agrifood systems. Moreover, the policy brief underscores two critical expenditure issues: budget execution and implementation. On average, over 20 percent of funds goes unspent, and this is more likely to occur in capital investment expenditures such as irrigation and road infrastructure. Raising additional resources for the sector where possible, unblocking already available resources and managing them effectively, as well as de-risking private-sector investments in the sector, and prioritizing spending with the highest returns, are the keys to unlocking public expenditure to help transform agrifood systems. -
BookletReturns to investments in fertilizers production in Kenya
An analysis in support of the new “Agriculture Sector Growth and Transformation Strategy”
2019Also available in:
No results found.This report, jointly produced by the Joint Research Centre (JRC) and the FAO’s Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme, analyses alternative strategic interventions on the agricultural sector in Kenya to inform the drafting of the new Agriculture Sector Growth and Transformation Strategy (ASGTS) and a new National Agricultural Investment Plan (NAIP) of the country. The study reviews trends and composition of food and agricultural public expenditures for the 2006-2016 period based on the MAFAP methodology, and analyses, through a general equilibrium model framework, impacts of agricultural policies on economic and sectorial performances of the country, and on its food security situation. The results highlight that the share of public resources allocated to the sector has been declining over time. Moreover, the agriculture budget is dominated by extension services, inputs subsidies and agricultural research. Although invetments in extension should remain in place, as the potential positive effects on the Kenyan agriculture look significant, some rebalancing of the spending in favour of roads and marketing, together with a diversification of targeted commodities, could help maximize spending impacts. The CGE assessment confirms that while investing in fertilizer production is likely to have a positive effect on agricultural output and farmer livelihoods, such expenditures need to go hand in hand with improvements in the status of rural infrastructures and the quality of extension services. The adoption of an import tariff for fertilisers would have negative effects, through an expected increase in farmer production costs. Agricultural transformation can only be achieved by adopting coherent and well-balanced intervention packages.
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