Conference on Sustainable Agricultural Development “East African Farmers at Centre Stage: Towards an Integrated Approach to Sustainable Agricultural Development – Potentials, Challenges and Interdependencies”. 7-8 May, Buziga Country Resort
INTRODUCTION “Agricultural Development in East Africa” by Mr. Frederick Musisi Kabuye, Africa 2000 Network – Uganda
Introduction: Agriculture takes a large share of National Economies throughout East Africa. According to FAO and World Bank development Indicators, agriculture accounts for 43% of the total GDP in the region. In Tanzania and Burundi agricultural share of GDP exceeds 50% and in Uganda and Rwanda it is about 50%. Only in Kenya, it contributes less than 30% because Kenya’s structural transformation towards a less agricultural-based economy is more advanced than in other countries in the sub-region. Percentage agricultural growth rates for crops in East Africa 1993 – 2003 Country Production Burundi -0.09 Kenya 1.87 Rwanda 7.86 Tanzania 1.73 Uganda 3.31 Source: FAO (May 2006)
Area 0.31 0.45 6.48 0.47 2.31
Yield -0.40 1.41 1.30 1.25 0.98
Labour productivity in East Africa has declined substantially due to labour contraction especially in Kenya and Tanzania. However, it has recovered substantially in Rwanda and Uganda. Given these trends the average yield for East Africa’s major crops currently fall well below those elsewhere in Africa and even further below global levels. It is only for cassava, beans, coffee and tea where east Africa yields compares favourably with average African and global levels. These trends in productivity growth have translated into poor overall agricultural growth rates in individual countries in East Africa and for the region as a whole. Agricultural commodity yields in metric tons per hectare: East and Central Africa, Africa and Global 2003 Commodity Maize Rice Wheat Sorghum Millet Potatoes Sweet potatoes Cassava Beans
ECA 1.39 1.12 1.38 0.67 0.47 7.46 4.29 8.18 0.60
Africa 1.16 1.87 2.03 0.88 0.70 11.17 4.32 8.83 0.62
Global 4.47 3.84 2.66 1.30 0.82 16.45 13.49 10.76 0.70
Groundnuts Sugarcane Bananas Coffee Tea Barley Oil seed Beef (kg/animal) Chicken (kg/animal) Cow milk (kg/animal/year) Source: FAO (2004)
0.62 4.11 4.69 0.57 1.85 1.18 0.51 127 0.92 427
0.86 56.74 6.59 0.45 1.95 1.24 0.69 148 1.17 496
1.35 65.29 15.25 0.75 1.33 2.48 1.75 200 1.72 2,197
Agricultural implications on Poverty, Hunger and Malnutrition: Because most of the region’s population reside in rural areas and depends on agriculture for income and sustenance, and given the low level of productivity growth, in the sector, poverty rates are high and hunger and malnutrition have deepened in recent years. Poverty rates vary across countries but in general are very high. Poverty rates, 2005 Country
% population % population % population living on less than living on less than living below the US$ 1/day US$ 2/day National poverty line Burundi 58.4 89.2 Na Kenya 22.8 58.3 42.0 Rwanda 51.7 83.7 51.2 Tanzania 19.9 59.7 35.7 Uganda 85.0 na 55.0 Source: United Nations 2005, Table 3 Between 1979 and 2000, the number of malnourished adults in east Africa grew faster than the overall population. Rates of child under-nourishment and child mortality- which is closely linked to malnutrition- stood above those of Sub-Saharan Africa and other developing regions of the world. Child malnutrition and mortality 1990 – 2000 Country
Burundi Kenya Rwanda Tanzania Uganda
% of undernourished children (underweight, stunted and/or wasted) 45 23 29 29 24
Mortality rate (per 1,000 births) 190 120 203 165 145
In summary, the above statistics depicts a region of countries progressively less able to meet the needs of their increasing population. With agriculture looming so large in most national economies, sluggish growth in agricultural productivity has translated into sluggish overall growth and generally low income levels. High levels of agricultural importation especially of staples would appear to be only partially filling the consumption needs of a population lacking purchasing power, resulting in extensive adult and child malnutrition and towering child mortality rates.
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Growth options in agricultural sub sector NEPAD estimates that to achieve the MDG of halving poverty by 2015, African countries must register overall economic growth rates in excess 6% per year over the next 12 years. In economies dominated by agriculture such as those of east Africa, achieving such GDP growth rates means generating rapid growth in agriculture. But the various agriculture sub sectors probably make different contributions to overall economic growth. Sub sector priorities: On which agricultural sub sector might East Africa governments depend for enhanced growth and poverty reduction and why? Milk emerges as the most important commodity sub sector for both agricultural GDP and GDP generation. Oil seeds, cassava, fruits and vegetables also rank high in both regards. Commodity markets and trade: where are we, what value does our agricultural output has in the global economy? Organic agriculture sector offers a window of opportunity for national sustainable development especially for smallholder farmers in East Africa. This is due to organic agriculture inherent economic, food security, environmental and social-cultural benefits. In spite of the rigorous standardisation and certification requirements, organic farmers earn more from higher yields, diversified production and improved nutrition (better health). Organic projects like SIDA supported Promotion of Organic Products from Africa (EPOPA) implemented in Uganda and Tanzania have yielded good impact such as better investment of organic premium. Percentage distribution of organic premium in EPOPA supported projects Item Exporters extra profit Certification costs Farmers premium Extra buying and handling (market expansion) Field operations (quality assurance)
Investment 14 15 37 18 16
This is a good case project that has ended but could be replicated. The farmers in the EPOPA supported project have utilised their premium as follows to improve their livelihoods
Schooling Housing improvement Land acquisition Others
65% 38% 19% 15%
Other benefits to the farmers include: Training 65% Inputs access 57% Income 40% According to UNCTAD, organic agriculture exports in the global sales stand at double in terms of growth rates compared to conventional food products. There has been acute supply shortages of organic agriculture products since 2005, and developing countries exports are rising faster.
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One export company in Uganda, Biofresh, has had their exports grow from 2-3 tons/week in 2003 to 9-10 ton/week at present. In 2006 their sales turn over was USD 60,972 and it almost doubled in 2007 to USD 114,722. Challenges encountered in export trade in East Africa High certification costs for organic agriculture Inconsistencies in quality Poor infrastructure e.g. roads and market/field shades Pests and diseases attack Poor records keeping especially by smallholder farmers due to high illiteracy levels Seasonality of produce – there are no irrigation facilities to ensure consistent supplies Aging farmers; posing difficulty to implement labour intensive activities. Local market outlets still under-developed Lack of pro-active research institutes that keep players in the market value chain informed of new varieties and trends to meet the market demands Challenges in local market development in East Africa • Transparency and quality assurance • Inconsistent and unreliable supplies from producers • Variety in the product range: livestock products are very few • Low consumer awareness • Capacity of farmers to produce for the market place is very low • Local markets not well developed in all East African states both for conventional and organic products. However the East African Organic Products Standards and mark offer a good opportunity for local (Regional) market development. General challenges in the agricultural sector development in East Africa The promise of modern biotechnology in spurring productivity growth in East Africa region remains only partially exploited. Although the promise cannot be ignored, the role of this branch of science in the economic transformation and sustainable development of east Africa (and other parts of East Africa) is subject to increasing debate and controversy. Two extreme positions polarise the debate. Pro-GMO activists tend to portray biotechnology as the ultimate panacea for food insecurity in east Africa and the anti-biotechnology activists link biotechnology to nothing but danger and risk (such as unscrupulous profiteering by GMO producing private firms and negative effects on the environment and human health). The two views have left many East African policy makers and sections of the public uncertain about how to proceed because reliable information and guidance are lacking. Strategic priorities for agricultural development Investment in research and development Regional co-operation in research and development Spur productivity growth in selected sub-sectors Strengthen agricultural markets Promote growth linkages – this point to the importance of growth in non-agricultural sectors to sustained growth in the agricultural sector. Exploit opportunities for regional co-operation e.g. regionally conceived and implemented agriculture R&D, regional initiatives to improve rural infrastructure, harmonisation of region’s telecommunications and transport systems and removal of policy-related barriers to movement of goods across borders. Mr. Frederick Musisi Kabuye Executive Director Africa2000Network - Uganda Plot 70 Bukoto Street P.O. Box 21990, Kampala Tel: 0414 541 571 Email:
[email protected]
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