There is a potential link between underdevelopment and lack of agricultural finance in Africa. Agriculture accounts for a large percentage of GDP and employment in many African nations, yet receives a very small percentage of total finance - just 7% of the total value of agriculture in 2000. A case study from Uganda in 2008 showed that while agriculture made up 28% of GDP, it received financing that was equivalent to only 7% of its total value and just 6% of GDP, despite 73% of the population working in agriculture.

1. Is there a link between underdevelopment and lack of agricultural finance in Africa?
1. GDP per developing region, 3. Agriculture finance in Africa,
USD bn 2000 USD bn 2000
2,684 195
GDP
2,048
Agriculture
Agriculture Finance
929 Just 7% of
59 the total
589
value of
195 agriculture
17 4
Latin Near East East and South Asia Oceania Sub- 2000
America and North Southeast Developing Saharan
and the Africa Asia Africa
Caribbean Case study: Uganda 2008, USh bn
30%
28,340
2. Agriculture as a % of GDP,
25% GDP
2000
20% Agriculture
17% Agriculture Finance
12% Just 7% of the total
value of agriculture
7% 6,093 BUT 73% of the
population is
425 engaged in
agriculture
Latin Near East East and South Asia Oceania Sub- 2008
America and North Southeast Developing Saharan
and the Africa Asia Africa
Caribbean
Source: FAO, BOU