What role does agriculture play in north africa’s economy

Agriculture stimulates other sectors, not just in terms of demand, but also concerning the raw materials. It creates the taxable base for the government to invest in education, health and infrastructure. Basically, agriculture is the “cow” that has to feed the family in the early decades of economic development.

Agriculture is by far the single most important economic activity in Africa. It provides employment for about two-thirds of the continent’s working population and for each country contributes an average of 30 to 60 percent of gross domestic product and about 30 percent of the value of exports.


How important is agriculture to Africa’s economy?

With post-harvest activities taken into account, agriculture-related industry accounts for nearly half of all economic activity in sub-Saharan Africa. The region holds about half of the world’s fertile and as-yet-unused land – and yet it spends US$25 billion annually importing food.

What is the purpose of Agriculture in Nigeria?

The main purpose of agriculture is to provide food and raw materials for human use. Nigeria is currently poised to be a world power in the agricultural sector. The fact that Nigeria is richly blessed with abundant human and natural resources is one point that has been consistently repeated in various fora.

How does agriculture affect the growth rate of the economy?

If agriculture fails to meet the rising demand of food products, it is found to affect adversely the growth rate of the economy. Raising supply of food by agricultural sector has, therefore, great importance for economic growth of a country. Increase in demand for food in an economy is determined by the following equation:

Why should the process of economic development begin for agricultural sector?

As a matter of fact, if the process of economic development is to be initiated and made self-sustaining, it must begin for agricultural sector. Role of Agriculture in Economic Development:

What role does agriculture play in the economy?

Agriculture plays a major role in economic growth and development. As the provider of food it is a cornerstone of human existence. As a furnisher of industrial raw materials it is an important contributor to economic activity in other sectors of the economy.

What does North Africa’s economy rely on?

Agriculture and food. Agriculture is still one of the most important sectors of the economies of North Africa, both for feeding the population and for export.

Does North Africa have agriculture?

The agricultural sector in North Africa has experienced significant transformation in the last few decades. As Table 1 shows, the share of agriculture in GDP is low. Yet despite the declining share of agriculture in GDP, the agricultural sector remains a primary source of employment, particularly in Egypt and Morocco.

Why is agriculture significant in economic development in Africa?

Agriculture constitutes the main source of employment of the majority of the world’s poor. In total, the share of agriculture in total employment in developing countries constitutes 53% of the total workforce in 2004. In Sub-Saharan Africa 60% of the economically active population works in the agricultural sector14.

What is the agriculture in Africa?

Africa produces all the principal grains—corn, wheat, and rice—in that order of importance. Corn has the widest distribution, being grown in virtually all ecological zones. Highest yields per acre are recorded in Egypt and on the Indian Ocean islands of Réunion and Mauritius, areas where production is under irrigation.

What resources of North Africa are the most valuable?

Africa’s two most profitable mineral resources are gold and diamonds.

Why is North Africa unsuitable for agriculture?

This system of permanent cultivation is used where population densities are very high, farmland is very scarce—as in North Africa—or where the soils are naturally very rich—as with the volcanic soils of east Africa.

How does agriculture contribute to the economy of South Africa?

Agriculture is central to fostering economic growth, reducing poverty, and improving food security in the Southern African region. More than 70 percent of the rural population depends on agriculture for their livelihoods, and regional economic growth has been constrained by poor performance in the agriculture sector.

What are the main crops grown in North Africa?

AlgeriaEgyptMoroccoBarley Oat WheatBarley Corn Cotton Maize Rice Sorghum Sunflowerseed WheatBarley Corn Oat Sunflowerseed Rapeseed Wheat

Why the agriculture is important?

Agriculture plays a chiefly role in economy as well as it is considered to be the backbone of economic system for developing countries. For decades, agriculture has been related with the production of vital food crops. The Present era of farming contains dairy, fruit, forestry, poultry beekeeping and arbitrary etc.

What is importance of agriculture?

Agriculture provides most of the world’s food and fabrics. Cotton, wool, and leather are all agricultural products. Agriculture also provides wood for construction and paper products. These products, as well as the agricultural methods used, may vary from one part of the world to another.

Why is agriculture important for developing countries?

Agriculture can be important for developing countries in several ways; where food security is weak it can be a vital source of nutrition, it provides income for farmers and farm workers and thus revenues for rural areas, job opportunities in related areas such as processing and in some cases export revenue and thus …

How much of Africa’s GDP is agriculture?

Agriculture averages 24% of GDP across the continent. With post-harvest activities taken into account, agriculture-related industry accounts for nearly half of all economic activity in sub-Saharan Africa. The region holds about half of the world’s fertile and as-yet-unused land – and yet it spends US$25 billion annually importing food.

What was the agricultural development of China in the late 1970s and 1980s?

farm machinery. With strong backward linkages between these rural enterprises and Chinese farmers, agricultural development in China grew substantially in the late 1970s and 1980s. This happened through farmland capital construction, chemical fertilisation and mechanisation.

How many smallholder farmers does Heifer International serve?

In Malawi, for instance, Heifer International is implementing a programme alongside USAID that is designed to stimulate a dairy industry. But it serves only 180 smallholder farmers.

How does rural enterprise help China?

By keeping workers and economic activity in rural areas, China has helped expand rural markets and limit rural-urban migration.

What is value chain in Africa?

Value chains in many African countries feature an informal chain that serves lower-income consumers and a formal chain that caters for high-income domestic consumers or exports. In many sectors the vast majority of the volume moves through the smaller, less formal businesses.

What are the main industries in China?

China’s initial rural enterprise strategy focused on the so-called five small industries it deemed crucial to agricultural growth: 1 chemical fertiliser; 2 cement; 3 energy; 4 iron and steel; and 5 farm machinery.

Is there venture capital in Africa?

Venture capital in Africa, however, barely exists outside South Africa. African countries also need to make a concerted effort to leverage expertise in the diaspora. This cohort provides links to existing know-how, establish links to global markets and train local workers to perform new tasks.

What is the role of agriculture in the economy?

Agricultural sector plays a strategic role in the process of economic development of a country. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. ADVERTISEMENTS: In other words, where per capita real income is …

Why is agriculture important?

Agriculture is the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed. Due to heavy pressure of population in underdeveloped and developing countries and its rapid increase, the demand for food is increasing at a fast rate.

How does rural economy affect social welfare?

The rising agricultural surplus caused by increasing agricultural production and productivity tends to improve social welfare, particularly in rural areas. The living standard of rural masses rises and they start consuming nutritious diet including eggs, milk, ghee and fruits. They lead a comfortable life having all modern amenities—a better house, motor-cycle, radio, television and use of better clothes.

What is agriculture in India?

Agriculture provides employment opportunities for rural people on a large scale in underdeveloped and developing countries. It is an important source of livelihood. Generally, landless workers and marginal farmers are engaged in non-agricultural jobs like handicrafts, furniture, textiles, leather, metal work, processing industries, and in other service sectors. These rural units fulfill merely local demands. In India about 70.6% of total labour force depends upon agriculture.

What happens to agricultural production during a depression?

During depression, industrial production can be stopped or reduced but agricultural production continues as it produces basic necessities of life. Thus it continues to create effective demand even during adverse conditions of the economy.

What will happen to agriculture as a result of industrialization?

As a result of agricultural progress, there will be extension of market for industrial products. Increase in agricultural productivity leads to increase in the income of rural population which is turn leads to more demand for industrial products, thus development of industrial sector.

Why is agricultural advancement important?

Agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level.

What was the role of agriculture in Nigeria?

The Role of Agriculture in Nigeria. Prior to the discovery of oil in Nigeria, agriculture was the mainstay of the economy. Agriculture was then the highest earner of foreign exchange for the country, and Nigeria was also largely self-sufficient in food production. However, with the discovery of oil, the lure of petro dollars turned the focus …

What has the government done to promote agriculture in Nigeria?

In recent years, the government of Nigeria has put forth policies to promote agriculture in the country. Although a lot has been achieved in the area of food security, a lot still has to be done. Provision of Raw Materials to Support Industries.

How much cocoa does Nigeria produce?

In the agricultural sector, cocoa is the highest foreign exchange earner with Nigeria producing more than 200,000 tons of cocoa per annum. This output can be greatly increased if the current traditional methods of cultivation are traded for more modern mechanized methods.

How much land is arable in Nigeria?

This land area amounts to about 82 million hectares. Unfortunately, only about half of this arable land mass is being currently cultivated.

How much does agriculture contribute to the GDP of Nigeria?

Agriculture currently contributes between 30 and 40 percent to the national gross domestic product (GDP) of the country with a huge majority of the rural population engaging in subsistence agriculture. The relatively diverse variety of climatic conditions in Nigeria makes it possible to raise a wide range of crops across the country.

Why is food security important in Nigeria?

Food Security. It is a common saying that the quality of food consumed by a people is a stark revelation of the quality of life of the people. With a population of more than 160 million and growing, Nigeria needs to produce enough food to cater for her growing population and also export to earn foreign exchange.

What is the highest employer of labour in Nigeria?

Although no longer the largest sector of the Nigerian economy, agriculture still remains the single highest employer of labour in Nigeria, most especially in the rural areas.

Why is agriculture important in economic development?

The role of agriculture in economic development is crucial because a majority of the population of developing countries make their living from agriculture. We explain below the role of agriculture in detail and point out in what ways agriculture can …

What is the market contribution of agriculture?

The market contribution of agriculture means the demand for industrial products. In the earlier stages of development when urban sector is very small and markets for exports have not yet been found, agricultural sector of developing countries is a major source of demand or market for industrial products.

What happens if agricultural productivity does not rise?

If agricultural productivity does not rise the marketable surplus for industrial growth has been obtained by some countries through coercion as was the case in Japan at the time of Meiji Restoration (1869) when through compulsory taxation marketable surplus was extracted from the farmers.

How does agriculture help in eradicating poverty?

In any strategy of eradication of poverty agricultural growth plays an important role. Agricultural growth raises the productivities and incomes of small and marginal farmers, and raises and employment and wages of agricultural workers. With this, it helps to reduce poverty and disguised unemployment.

How can agriculture be used to help industrial growth?

Agriculture can also be a major source of saving or capital for industrial growth of developing countries. Even, in poor developing countries, as income from agriculture is unequally distributed, rural people with high incomes can invest their savings for industrial development. In Britain at the time of industrial revolution rich landlords voluntarily invested some of their savings in growing industries. Besides, small farmers can deposit their small savings in banks operating in the rural areas and then these banks can provide loans to the industrialists for investment purposes.

Why is agriculture taxed in Japan?

In Japan a tax on agriculture was levied to mobilise savings for capital accumulation. In India land revenue from agriculture has been a negligible source of State income. A committee headed by late Dr K.N. Raj recommended ‘Agricultural Holding Tax’ to mobilise savings from agriculture for economic development.

Why is there stagnation in the industrial sector?

In India it has been found that whenever there is sluggish or negative agricultural growth, there is stagnation in the industrial sector due to lack of demand for the industrial products.

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