Africa’s elusive green revolution

This is a great piece on the subject in The Economist:

Screen Shot 2018-11-01 at 2.04.41 PM.pngSomething akin to Asia’s rural development may, at last, be happening in parts of Africa. Since 2002 the proportion of African workers employed in agriculture has fallen from 66% to 57%. Yet the real value of agricultural production has grown at an average pace of 4.6% a year, double the rate between 1970 and 2000. Even so, the region is lagging behind. Most of the increase comes from using more land, rather than improved productivity.

A good deal of the divergence in agricultural productivity after the 1970s is driven by African states failure to increase the use of fertilizers.

fertilizerindex

More broadly, smart policy to increase agricultural productivity must focus on market reforms (to ensure most of the surplus in the sector goes to farmers and to intensify financialization), rationalization of farm subsidy regimes, addressing the question of farm size (increasing urbanization may reduce the political cost of land consolidation in the region), and investing in logistics to reduce wastage between farms and markets (including transportation and storage).

 

It’s getting easier to do business in Africa

At least according to the World Bank Group:

Sub-Saharan Africa has been the region with the highest number of reforms each year since 2012. This year, Doing Business captured a record 107 reforms across 40 economies in Sub-Saharan Africa, and the region’s private sector is feeling the impact of these improvements. The aver- age time and cost to register a business, for example, has declined from 59 days and 192% of income per capita in 2006 to 23 days and 40% of income per capita today. Furthermore, the average paid-in minimum capital has fallen from 212% of income per capita to 11% of income per capita in the same period.

See the 2019 Doing Business Report here.

Here are some questions from last year on the integrity of the Doing Business Index.