Agriculture is one of the most effective tools for economic development, having contributed significantly to the GDP of countries across Africa over the years. It employs a large share of the labour force, supplies raw materials to industries, and remains the continent’s most important economic activity, especially for rural populations.
Understanding the numerous evolutions of agriculture and its contribution to the GDP of African countries reveals not only its current economic significance but also the opportunities available to investors.
Gross Domestic Product (GDP) is a metric for estimating a country’s economic performance. It represents the total monetary value of all final goods and services produced within a nation’s geographical boundaries over a specified period, typically a quarter or a year.
Agriculture accounts for approximately one-third of Africa’s GDP and supports about half of the continent’s workforce; the exact share varies by country. As of 2023, Niger recorded the highest share of GDP from agriculture at over 47%, followed by Comoros at 37% and Ethiopia at 36%. Botswana and South Africa had some of the lowest contributions, with agriculture accounting for just 1.6% and 2.6% of their GDP, respectively.
Agriculture’s share of GDP is highest in West, East, and Central Africa. There was a significant rise from about 15.4% in 2011 to 17.3% in 2022, indicating a slow but steady increase in its role within the economy. In North Africa, agriculture accounted for between 9% and 13% of the GDP in 2024. Libya stood at just 1.7%, while Sudan recorded a significantly higher 22.1%, largely due to conflict-related economic shifts.
In 2021, about 230 million Africans worked in the Agricultural sector, representing around 43% of the continent’s total labour force. The reliance on agriculture for jobs varies across different regions. Central Africa records 51% of its workforce engaged in farming, followed by East Africa at 45%, West Africa at 44%, and North Africa lower at 21%.
Agriculture is central to livelihoods and social stability because it provides income for millions of households and improves food security.
A lack of investment in Agriculture prevents African countries from reaching their full potential. There are numerous opportunities for investors in African agriculture that are vast and diverse, extending beyond traditional farming practices. They lie in the agricultural sector that leverages technology, innovation, and sustainability.
Former Vice President of Nigeria, Yemi Osinbajo, emphasised in 2024, “There is a vast opportunity for investments in agriculture, when there is a commitment by the government to enabling private sector-led growth. Agriculture can be redefined as a future-focused economic driver, creating jobs and wealth for Nigeria and Africa”.
Agro-processing
Africa’s agro-processing sector is expanding due to rising demand for processed foods and a growing population. Agro processing also reduces post-harvest losses and improves market access through investments in infrastructure, such as transportation, storage, and cold chains. Special Agro-Industrial Processing Zones (SAPZs) have been established in Nigeria to streamline production and link smallholder farmers to value chains. Agro-processing offers attractive returns, with sectors such as dairy, grains, and edible oil processing providing investment opportunities.
Mechanised Farming
The African Development Bank, national governments, and private investors have prioritised agricultural mechanisation to increase productivity. An example is the $1 billion mechanisation program that was announced in 2024 by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, targeted at modernising farming across all states and increasing cultivated arable land through equipment such as tractors and capacity-building initiatives. Investments in mechanised farming accelerate farming efficiency, reduce labour bottlenecks, and encourage youth engagement in agriculture.
Exportation
Africa’s agricultural exports have grown steadily, with South Africa recording $13.7 billion in agricultural exports in 2024, led by citrus fruits, grapes, and wines. Export crop investments offer opportunities for value addition, supply chain enhancement, and market diversification, allowing for the leverage of favourable trade dynamics.
Emerging AgTech Trends
Digital tools, including AI-powered precision farming and agri-fintech solutions that provide access to credit, as well as climate-smart practices, are transforming African agriculture. Kenya’s VunaPay is driving innovations that optimise resource use, increase productivity, and improve market transparency. AgTech presents a forward-looking investment domain aligned with sustainable and scalable agricultural growth.
Agriculture’s potential contribution to Africa’s GDP is hindered by several challenges, including inadequate infrastructure (roads, storage, and power), limited access to finance and technology, the severe impacts of climate change, inefficient market systems, post-harvest losses, and skills shortages. Addressing these interconnected issues through investment in rural infrastructure, modern farming inputs, climate-smart practices, and financial inclusion is crucial for harnessing the sector’s transformative power to drive economic growth and ensure food security.
Agriculture is both a foundation of Africa’s economic life and a vital sector for inclusive growth and sustainable progress. By investing in agricultural modernisation, strengthening rural economies, and empowering smallholder farmers, Africa can reach the full potential of its agricultural sector, secure food and jobs for its population, build resilient economies, foster social stability, and pave the way for a prosperous future.
