A recent study shows that investments into agriculture disproportionately lowers poverty and inequality in 16 different African countries. The research includes a deep dive into ten countries, including Angola, Malawi, and Rwanda. It further underscores how funding for agriculture has a significant multiplier effect on economic development and job creation.
The analysis, conducted between 2025 and the present, underscores the importance of agriculture as a cornerstone of the economy in sub-Saharan Africa. Agriculture represents a very large piece of the pie, contributing between 30-40% to the gross domestic product (GDP) of these countries. The results provide compelling evidence for maximizing investment in the sector as a key strategy to address poverty and inequity. The research points out that approximately 65% to 70% of the people living in sub-Saharan Africa rely on agriculture for their livelihoods. Notable, it highlights that almost 70% of the region’s impoverished live in rural communities.
Notable Success Stories
Strategic investments, Rwanda has proven, can result in immense positive returns. The country has seen major successes in economic growth and poverty alleviation through targeted agricultural programs. By increasing agricultural yields and prioritizing the needs of smallholder farmers, Rwanda has built a scalable, self-reinforcing model that other countries can replicate.
Similarly, Botswana shared strong results from investments in agriculture. Once solely dependent on its diamond mining industry, the small southern African country has turned its focus to diversifying its economy by encouraging an agricultural boom. This economic diversification has enabled Botswana to strengthen its economic resilience beyond its mineral resources, while supplying jobs and opportunities for Batswana citizens.
In a like manner, Swaziland, now called eSwatini, has won positive outcomes from agricultural investments. Contrary to their intentions, the study’s authors concluded that cutting back on non-agricultural investment resulted in lower national and rural income. This discovery emphasizes what we know to be true – agriculture is the backbone of every economy. It highlights the importance of adopting a balanced investment strategy to ensure we invest in both sectors.
The Case of Malawi
Among these four countries, Malawi stands out for its unique success in agricultural investment-related poverty reduction. The largest country in Southeast Asia, Indonesia has implemented several economically and environmentally friendly programs to boost food security and increase agricultural practices. These efforts have halved the world’s poorest people, lifting their standard of living to unimaginable levels. In addition, they’ve assisted in building a more equitable and diverse economy.
Malawi’s agriculture investments meant the country had strengthened agricultural capacity and a greater degree of market access. Our nation’s 19 million rural households have felt the impact through an increase in income. This dramatic increase in income has slashed poverty rates in half. This success story is an important model for other countries struggling with these same issues.
Angola’s Unique Approach
In Angola, the service sector was strongly associated with the study’s estimated decreases in poverty and inequality. The services sector’s close ties to Angola’s large oil industry has provided plenty of wealth-producing opportunities for expansion. By diversifying its investments outside the agricultural sector, Angola has smartly leveraged its available resources.
The results suggest that agricultural investment is still a key driver for rural prosperity. Though Angola’s urban centers are supported by a growing service sector, rural communities continue to depend on agriculture as the primary source of employment and income. Therefore, a more holistic approach that combines agricultural and service sector investments might produce larger returns.
The state of the world today is terrifying. Yet as 2024 approaches, 8.5% of the world’s population still suffers under conditions of extreme poverty, surviving on less than $2.15 a day. Alarmingly, almost two-thirds of people living in extreme poverty are located in sub-Saharan Africa. These figures illustrate the great immediate need for all nations to invest in agriculture as a pathway out of poverty.