Working Paper 72 - Technology Transfer for Agriculture Growth in Africa

This paper searches for the most effective technology for agricultural growth in Africa on the basis ofFAO data available during the last forty years. The paper discusses the challenges for agriculturalgrowth and evaluates the development assistance that was made by donors to the agricultural sector inAfrica in comparison to the sector’s performance and its growth during the last two decades. Ananalysis of the total versus per capita food production is conducted in relation to food exports andimports to identify the magnitude of the food problem in Africa and raise awareness of its future trend inthe search for practical solutions.The paper analyses five major variables of food production to explain the poor performance of theagricultural sector and concludes on the most effective factor to accelerate food supply as a mean topoverty reduction in Africa. In addition to the graphical analysis, a simple ordinary least squares (OLS)model is used to estimate an African food production and explain some of the divergences. Further, analternate specification uses only three variables in a logarithmic model to confirm results obtained fromthe graphical analysis and the OLS model. The variables included in the analysis are land expansion,irrigation, mechanization, high yielding varieties, and fertilizers.The findings of the study suggest that the most effective production factors for increasing food supplyand reducing poverty are the use of high yielding varieties and improved seeds along with the applicationof appropriate fertilizers. Since high yielding varieties are produced by the agricultural researchservices, the paper looks more deeply into biological gradients and the yield potential impact throughthe African experience. The findings show that HYV seeds and fertilizers would increase cereal productionby 75 percent with appropriate extension. The study examines other evidence from agriculturalresearch in Africa and concludes that the field ex-post rate of return for the application of agriculturaltechnologies in most of the cereals reaches 97 and 87 percent.Having shown that biotechnology is the only effective technique for future food supply growth, attentionis given to the African capacity of agricultural research and technology. The paper examines the ingredientsof research and its efficiency and sustainability. Further, the paper developed and proposed ananalytical technique using a capacity compound factor (research return and researchers intensity) tocategorize African countries into four groups based on their AgGDP, research expenditure, number ofresearchers and population in each country. This identifies the need to strengthen the existing researchinstitutions and establish a systematic improved seed production and distribution system in the Africancountries strengthened by rural infrastructure and marketing development.For poverty to be reduced in Africa, the paper provides several scientific evidences that biotechnologyis the only way for boost food supply surplus. Poverty in Africa can be significantly and sustainablyreduced in a short period of time through intensive support to the usage of improved seeds, tissueculturing and micro-propagation along with self-reliance in the production of fertilizers. In this respect,the paper proposed a four-component strategy for rural development and poverty reduction in Africa.The four components are i) capacity building for technology transfer; ii) rural infrastructure for improvedlinkage to markets; iii) promotion of private sector for pre and post-harvest commercial activities;and iv) rural micro-finance for accessibility to farm inputs.