A new report by Boston Consulting Group (BCG) and the Paris Peace Forum reveals that strengthening African agriculture is one of the most powerful ways to achieve the UN’s Sustainable Development Goals (SDGs). According to the report, improving agricultural productivity in Africa could help meet up to half of the SDGs.
Despite supporting the livelihoods of 70% of Africans and contributing roughly 30% of the continent’s GDP, the sector remains critically underfunded. In 2022, African agriculture received just $49 billion in investment—a fraction of the estimated $200 billion needed.
“Investing in African agriculture is about more than feeding the continent. It’s about transforming Africa into a driver of global food security, resilience, and economic growth,” said Younès Zrikem, a report co-author and Managing Director at BCG in Casablanca.
The report highlights that investing in African agriculture offers a “triple win” by addressing poverty, climate change, and social inequality.
- Poverty and Hunger: With over 400 million Africans living in extreme poverty and 60% of the world’s food-insecure population on the continent, boosting agricultural output is crucial for reducing hunger and improving nutrition.
- Social Equity: The sector directly empowers women, who make up 40% of the global agricultural workforce. Increased investment would also improve health outcomes and education for millions of children.
- Climate Resilience: By building climate-smart agricultural systems, Africa can better withstand environmental shocks and reduce the projected displacement of climate migrants.
The report also notes that African farmers receive only $140 in annual investment per farmer, compared to the global average of $1,300. This disparity has led to low productivity and a growing reliance on imports, which are projected to reach $110 billion by 2030 without urgent intervention.
The report emphasizes the need for stronger policy commitments and increased funding. Currently, public spending on agriculture accounts for just 3% of government budgets, far short of the African Union’s 10% target. Furthermore, private sector investment makes up only 3% of total funding, significantly lower than the global average.
“Africa’s agricultural potential remains vastly underleveraged, not due to lack of opportunity, but due to underinvestment,” said Olayinka Majekodunmi, a Partner at BCG in Lagos.
To address this, the Paris Peace Forum launched the Agricultural Transitions Lab for African Solutions (ATLAS), which includes the 2×30 Challenge. This initiative calls on funders to double annual investment in African agriculture to $100 billion by 2030.
According to Zoe Karl-Waithaka, a Managing Director at BCG in Nairobi, “When Africa’s farms thrive, the world moves closer to achieving the SDGs.”
Read the full publication here.