Agricultural incentives in Sub-Saharan Africa: policy challenges, Volumes 23-444

'As we move into the 21st century, Africa faces tremendous opportunities for growth in which agriculture will continue to play a prominent role. Implementing the unfinished policy agenda is critical to realizing these opportunities.' — Hans P. Binswanger, Sector Director The main focus of this study is on improving the policy regime in Africa to stimulate agricultural growth. It examines the state of agricultural incentives in Sub-Saharan Africa, taking stock of the current policy environment and its recent evolution, to update knowledge and to help develop a stronger consensus on the appropriate policies and incentives that will stimulate agricultural growth. The global environment is examined together with the macroeconomic, export crop, food crop, and fertilizer policies in 16 African countries. This study examines the state of agricultural incentives in Sub-Saharan Africa, taking stock of the current policy environment and its recent evolution. The global price environment is examined together with the macroeconomic, export crop, food crop, and fertilizer policies in sixteen African countries. Policy diamonds are constructed as incentive indicators reflecting the state of macroeconomic and agricultural policies relative to a perceived frontiers. The study attempts to determine the factors inhibiting countries from moving towards this frontier. The study highlights several continuing policy challenges that sub-Saharan Africa faces to ensure appropriate agricultural incentives to stimulate growth. These include: coping with agricultural commodity price decline and fluctuation; securing access to foreign markets and in particular meeting the sanitary and phytosanitary requirements; removing continuing domestic trade barriers; stabilizing macroeconomic policies; enhancing the institutional framework and the credibility of rules; removing the remnants of marketing boards in many African countries; removing excessive agricultural taxation and ensuring public rural investment; improving transportation infrastructure; encouraging public and private sector partnership and dealing with aid in input markets