High rural population density Africa – What are the growth requirements and who participates?

•African agricultural growth must come increasingly from increased yields.•Africa faces greater difficulty compared to Asia to increase yields.•Diversity in Africa requires larger research expenditure than in Asia.•Fertilizer economics in Africa are far more complex than in Asia.•Agriculture has consistently been central to Ethiopia’s development strategy. A large and increasing proportion of agricultural growth in Africa must come from continuous gains in land productivity in areas of high population density and hence with already relatively high yields. What that requires is analogous to the green revolution in Asia. Several features differentiate the African situation. Those include greater diversity in cropping pattern including a historically larger and more widespread tropical commodity export sector. The physical infrastructure in rural Africa is far inferior to that of most Asian countries. While the greater diversity of agriculture calls for a larger and more diverse institutional structure the reality is that the research systems, the ancillary education systems to spread innovation and the rural financial systems are generally greatly inferior to those of Asia at the beginning of the green revolution. Ethiopia’s record of a steady six to seven percent growth for agriculture and nearly halving of rural poverty demonstrates that with the right policies and investments a very poor country starting with poor physical and institutional infrastructure can bring a major contribution from agriculture growth to increased GDP and reduced poverty. As in Asia, the bulk of accelerated agricultural growth will come from small commercial farmers. They have sufficient farm income to reach or exceed the poverty level. Those are farms with, depending on the country, as little as 0.75 hectares to a few tens of hectares of land. They comprise up to half the rural population and produce on the order of 70–80 percent of agricultural output. They are in general not poor. The poor have inadequate land to reach the poverty level, initially with much underemployment, and with substantial non-farm employment. The primary driver of poverty reduction is the small commercial farmer spending on the order of half of increased income on nontradable, employment intensive goods and services from the rural non-farm sector.