1. PRIMARY PRODUCTION
In most African countries, agriculture is the engine of economic growth, and agricultural growth is the cornerstone of poverty reduction. Approximately sixty-five percent of Africans rely on agriculture as their primary source of livelihood. Small-scale farmers are responsible for more than ninety percent of Africa’s agricultural production.
Agriculture accounts for 30 to 40 percent of Africa’s total gross domestic product (GDP), and almost 60 percent of its total export earnings. By raising productivity, investments in agriculture contribute to growth and poverty reduction both directly and indirectly. Higher farm wages and lower food prices lead to powerful real income effects. The welfare benefits are large when spread across all consumers, even if some producers end up being worse off.