This paper provides an overview of agricultural and economic characteristics of sub-Saharan Africa (SSA), in comparison with other developing regions and the opportunities which the medium term outlook holds for SSA’s small holder farmers. Seizing these opportunities will depend on shifting from extensive to intensive production systems. The paper reiterates a key conclusion of IFAD’s 2011 Rural Poverty Report: the ability of SSA’s smallholder farmers to increase on-farm investments in productivity is constrained by their capacity to manage the risk-return trade-offs in moving towards intensified agriculture.