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SMALLHOLDER AGRICULTURE AND SOCIO-
 ECONOMIC DEVELOPMENT IN SOUTHERN
              AFRICA




         Prepared by Dr. Irene Kadzere-
                     Forichi
        For ZIS Grade 12 Economics Class
SOUTHERN AFRICA




                  15 countries in
                      SADC
•   Vegetables
•   Maize/corn
                   •   Tobacco
•   Wheat
                   •   Potatoes
•   Small grains
                   •   Sweet potatoes
•   Sugarcane
                   •   Cassava
•   Cotton
                   •   Plantation crops e.g.
•   Fruits
http://www.liv.ac.uk/~kempsj/projects.html#top




http://www.newcastle-
staffs.gov.uk

                        http://www.foodnet.cgiar.org/images/Livestock_MIS.jp
SELECTED HUMAN DEVELOPMENT INDICATORS IN SELECTED COUNTRIES
Basic Indicators                                                                       Malawi   South Africa Zimbabwe
Total population (thousands), 2009                                                     15263      50110      12523
Total adult literacy rate (%), 2005-2008*                                                73        89         91
Primary school net enrolment/attendance (%), 2005-2009*                                  91        87         90

% of population using improved drinking-water sources 2008, urban                        95         99         99
% of population using improved drinking-water sources 2008, rural                        77         78         72

% of population using improved sanitation facilities 2008, urban                         51         84         56
% of population using improved sanitation facilities 2008, rural                         57         65         37

Estimated adult HIV prevalence rate (aged 15-49), 2009                                   11        17.8       14.3
Orphans, Children (aged 0-17) orphaned due to all causes, 2009, estimate (thousands)    1000       3400       1400

Youth (15-24 years) literacy rate, 2004-2008*, male                                      87         96         98
Youth (15-24 years) literacy rate, 2004-2008*, female                                    85         98         99
Number per 100 population , 2008, phones                                                 12         91         13
Number per 100 population , 2008, Internet users                                         2           8         11

Life expectancy, 1970                                                                    41         53         55
Life expectancy, 1990                                                                    49         61         61
Life expectancy, 2009                                                                    54         52         46

GNI per capita (US$), 2009                                                              280        5770         a
GDP per capita average annual growth rate (%), 1970-1990                                -0.1        0.1       -0.4
GDP per capita average annual growth rate (%), 1990-2009                                0.5         1.2       -1.9
Average annual rate of inflation (%), 1990-2009                                          28          8         62

% of population below international poverty line of US$1.25 per day, 1994-2008*          74         26          -

Source:
POPULATION DEMOGRAPHICS
SADC National                                                                SADC Aggregated
                                                                             Population
               2006   2007    2008    2009    2010
Angola         15.9   16.3    16.8    17.3    17.8                           280                                  277
Botswana        1.7    1.8     1.8     1.8     1.8
                                                                             275
DRC            63.7   65.8    68.1    70.4    72.8




                                                     Population (millions)
Lesotho         1.9    1.9     1.9     1.9     1.9                           270                          267.1
Madagascar     19.2   19.7    20.2    20.8    21.3                           265
Malawi         12.8   12.9    13.1    13.5    15.9                                                260.3
                                                                             260
Mauritius       1.3    1.3     1.3     1.3     1.3
                                                                             255          253.8
Mozambiqu
               19.9    20.6    21.2    21.8   22.4
e                                                                                  248
                                                                             250
Namibia           2       2     2.1     2.1    2.1
Seychelles      0.9     0.9     0.9     0.9    0.9                           245
South Africa   47.4    47.9    48.7    49.3     50                           240
Swaziland         1       1       1       1    1.1
                                                                             235
Tanzania       37.5    38.3    39.5    40.7     42
Zambia         11.8    12.2    12.5    12.9     13                           230
Zimbabwe         12      12    12.1    12.2   13.5                                 2006   2007    2008    2009    2010
SADC
Region
               248    253.8   260.3   267.1   277    Source, SADC
RURAL AND URBAN POPULATION


                                                       Steady increase in
                                                       urban population

                                                              and

                                                        decline in rural
                                                          population




Source: Southern African Development Community, 2012
:
                                                Growth (%)




               -20
                     -10
                                            0
                                                10
                                                       20
                                                             30
                                                                  40
                                                                         50
                            An
                              go
                                la
                       Bo
                         ts
                           w
                                an
                                  a




Source, SADC
                                D
                                    R
                                        C
                          Le
                            so
                              th
                                o

                            M
                             al
                                aw
                                        i
                       M
                          au
                            ri t
                                iu
                     M            s
                      oz
                         am
                            bi
                               qu
                                   e
                           N
                               am
                                 ib
                     So            ia
                       ut
                         h
                             Af
                               ric
                                     a
                       Sw
                            az
                               il a
                                   nd
                                                                              Fig 2: SADC – Inflation, 2008-2010




                        Ta
                          nz
                             an
                               ia

                            Za
                              m
                                                                  2008




                               bi
                                        a
                       Zi
                         m
                          ba
                            bw
                                                                  2009




                                     e

                               SA
                                    D
                                                                  2010




                                        C
Source: Rugube, 2011
Source: Rugube, 2011
Source: Rugube, 2011
AGRICULTURE AND SOCIO-ECONOMIC

DEVELOPMENT IN SOUTHERN AFRICA
 Up to 80% of the population in SADC
  depends on agriculture
 Crops

 Livestock

 GDP contribution (see figure below)
http://www.imf.org/external/pubs/ft/spn/2009/spn0914.pdf
FACTORS LIMITING ATTAINMENT OF
AGRICULTURAL POTENTIAL IN THE REGION
   Poverty – limited use of external inputs such as fertilizers, poor asset base e.g.
    Animals for land preparation
   Technological limitations
   Gender imbalance in access to production resources and decision making
   Policy limitations
   Limited/lack of financing or access to credit by smallholder farmers
   Limited technical know-how/capacity
   Limited access to information
   Poor access to markets
   Poor infrastructure – roads, rail, air, ports, storage facilities, etc
   High postharvest losses on farm, in transit to markets, during marketing
   Limited diversity of crops/livestock
   Climatic challenges – floods, droughts, variability in rainfall
   High land degradation problems (erosion, siltation, salinity, deforestation etc)
   Disease pandemics – human
   Pests and diseases outbreaks – and implications on output, qulity and
    marketability
   Conflicts/unrest
   Low investments into agricultural resach and development
Land Degradation




Source, ACT
Source: IFPRI, 2004
Low investments into
      agriculture




Source: Rugube, 2011
5.0
                                         Botswana
                                   4.5   Lesotho
                                         Malawi
Maize Yield (tonnes per hectare)



                                   4.0   Mozambique
                                         South Africa
                                   3.5
                                         Zambia
                                   3.0   Zimbabwe

                                   2.5

                                   2.0

                                   1.5

                                   1.0

                                   0.5

                                   0.0




                                         Source, FAO STAT
Poor Crop
SOME POSSIBLE WAYS TO ADDRESS THE CONSTRAINTS
   Development and promotion of suitable technologies
   Empower women – address gender disparities and mainstream issues such as HIV/AIDS
   Promote policies that are more favourable to smallholder farmers including subsidies as
    appropriate
   Improved credit access or financing of rural farming interventions
   Improved access to quality inputs
   Capacity building including information generation, networks and communication
   Support to establishment of sustainable market linkages
   Infrastrucre development including local level storage facilities and handling and processing zones
   Reduce postharvest losses – improve onfarm storage etc
   Diversify production and support COMMERCIALIZATION OF SMALLHOLDER FARMING
   Increase productivity
   Climate mitigation through e.g. small scale irrigation
   Building up the asset base for the poor – e.g livetsock
   Social protection measures
   Addressing soil and land degradation problems (erosion, siltation, salinity, deforestation etc) –
    intergrating agroforesty
   Smallscale agroprocessing initiatives – value addition
   Increased public and private sector invetsments into agricultural research and development
Selected imports by Malawi - 2009
                       160000
                       140000
Quantity (tonnes)


                       120000
                       100000                                                              Major sources
                        80000
                        60000
                        40000
                        20000
                           0

                                                                                   90000
                                                                                   80000




                                                         Total Value ('000 US $)
                                                                                   70000
                                                                                   60000
                                                                                   50000
                    $81 million of wheat imported in                               40000
                      2010, a 23% rise from 2009                                   30000
                                                                                   20000
                                                                                   10000
                                                                                      0
Source: FAO STAT, 2012
SUPPORTING VULNERABLE FARMERS TO
INCREASE PRODUCTIVITY IN SOUTHERN AFRICA
Recovery from emergencies/disasters, risk
reduction and mitigation
• Access to inputs and market linkages (e.g. Contract farming)
• Improved production techniques
• Mitigation to disastsers - diversification, conservation
  farming techniques, local seed production, small scale
  irrigation, gardening
• Small livestock projects including pass on-schemes
• Control of pests and diseases
• Improved postharvest handling
Most common method of planting under smallholder farming
CONSERVATION AGRICULTURE




 Conservation agriculture (CA)
can increase maize yields by up
           to 200%




                  Source: ACT and FAO
Conservation agriculture can help farmers to prepare their
                                    fields and plant on time

                   100
                    90
                    80

                    70
percent of plots




                    60
                    50
                    40
                    30

                    20
                    10
                     0
                                                ay




                                                                ly



                                                                            t




                                                                                                                                  y
                           ry




                                                      ne
                                    h



                                          ril




                                                                                                  er



                                                                                                             r



                                                                                                                       r
                                                                                           r
                                                                         us




                                                                                                          be



                                                                                                                    be
                                                                                        be




                                                                                                                               ar
                                   c




                                                              Ju
                                        Ap
                         ua




                                                                                                ob
                                                M
                                ar




                                                     Ju




                                                                         g




                                                                                                                             nu
                                                                                                         m



                                                                                                                   m
                                                                                       m
                                                                      Au
                      br



                                M




                                                                                                ct



                                                                                                         ve



                                                                                                                   ce
                                                                                  te




                                                                                                                           Ja
                                                                                               O
                    Fe




                                                                                   p




                                                                                                       No



                                                                                                                 De
                                                                                Se
                                                           timing of field preparation

                                                                CF basins          plow




         Source: Haggblade and Tembo (2003)
Practicing various forms of
crop mixtures/rotations under
CA help to improve soil health
      and diversiy food




                                 Source, ACT
AWARENESS AND CAPACITY
BUILDING REQUIRED AT ALL
         LEVELS


                     Training of agricultural
                       extension workers
Capacity building – practical sessions for farmers




Awareness and training among farmers and extension
                        staff

                           Source, ACT and GART
Increasing awareness among policy
                             and decision makers




Source, FAO and ACT
More research on
   the farms
AGROFORESTR
     Y
CAN AGRICULTURE HELP SADC COUNTIRES TO
    DEVELOP?

http://www.sarpn.org/documents/d0000393/index.php
 Most are pre-dominantly agricultural based
 Food dominates agricultural trade
 Enhanced agricultural trade could help to
        fight poverty
        promoting regional integration
        increasing economic growth and welfare.

   The World Bank estimates - 10% increase in crop yields
    could reduce by 9% the proportion of people surviving on
    less than $1 per day.

   IFPRI: Increased farm incomes (by $1) can significantly
    increase rural incomes (by between $0.5 and $1.5)
MALAWI AS AN EXAMPLEOF AGRICULTURE-BASED
ECONOMIC GROWTH

   2005 -launched an improved seed and
    fertilizer voucher subsidy programme
    targeted at the vulnerable households

   Increased maize yields observed – see
    earlier graph

   Positive balance on maize supply – surplus
    exported
Malawi Agricutural Value and GDP



                                       3000                                                                                     12
                                                  Gross Production Value of food
                                                  (million US$)
                                       2500                                                                                     10
Gross Production Value (million US$)




                                                  Gross Production Value of
                                                  Tobacco (million US$)

                                       2000       GDP Growth                                                                    8




                                                                                                                                      GDP Growth (%)
                                       1500                                                                                     6



                                       1000                                                                                     4



                                       500                                                                                      2

                                                                              122       108        116        113        153
                                                               109
                                                  65
                                         0                                                                                      0
                                              1980-89     1990-94      1995-99      2000-2005    2006       2007       2008


                                                                                 According to NEPAD CAADP report, Malawi is among the
Source: FAO STAT; SADC                                                          countries allocating more than 10% of their annual budgets
                                                                                                      to agriculture
Malawi is one of the countries reported to be allocating more than 10% (2007 CAADP
                                       report)




  Source: http://www.nepad.org,
GLOBAL TRADE AND AFRICAN SMALLHOLDER
FARMERS – OBSTACLES FACED IN COMPETING
WITH WESTERN COUNTRIES
   Quota system
   More border restrictions – exporting as a country
    rather than as region – compare e.g. with EU
   Competitiveness – costs of production
   Subsidies in developed countries which may render
    their goods cheaper than those from developing
    countries
   Quality standards of produce is lower
   Exporting primary or semi processed products
   Trade policies – need for regional trade policies to
    conform to a global economy
   SADC countries are members of other regional
    trading block, such as COMESA - overlaps in trade
General exports from the SADC
                                              Region

                              45
                                                      Yr 2000
                              40
Proportion of export (%)




                              35                      Yr 2007

                              30
                              25
                              20
                              15
                              10
                               5
                               0




                           Source: Negasi 2009
IFPRI, 2004
MILLENIUM DEVELOPMENT GOALS
   Goal 1: Eradicate extreme poverty and hunger
   Goal 2: Achieve universal primary education
   Goal 3: Promote gender equality and empower
    women
   Goal 4: Reduce child mortality
   Goal 5: Improve maternal health
   Goal 6: Combat HIV/AIDS, malaria and other
    diseases
   Goal 7: Ensure environmental sustainability
   Goal 8: Develop a global partnership for development
ACKNOWLEDGEMENTS

 All sources of information used
 All organizations and projects that I have
  worked for and with
THANK YOU

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Agricultural Productivity and Economic Development in Southern Africa

  • 1. SMALLHOLDER AGRICULTURE AND SOCIO- ECONOMIC DEVELOPMENT IN SOUTHERN AFRICA Prepared by Dr. Irene Kadzere- Forichi For ZIS Grade 12 Economics Class
  • 2. SOUTHERN AFRICA 15 countries in SADC
  • 3. Vegetables • Maize/corn • Tobacco • Wheat • Potatoes • Small grains • Sweet potatoes • Sugarcane • Cassava • Cotton • Plantation crops e.g. • Fruits
  • 4. http://www.liv.ac.uk/~kempsj/projects.html#top http://www.newcastle- staffs.gov.uk http://www.foodnet.cgiar.org/images/Livestock_MIS.jp
  • 5. SELECTED HUMAN DEVELOPMENT INDICATORS IN SELECTED COUNTRIES Basic Indicators Malawi South Africa Zimbabwe Total population (thousands), 2009 15263 50110 12523 Total adult literacy rate (%), 2005-2008* 73 89 91 Primary school net enrolment/attendance (%), 2005-2009* 91 87 90 % of population using improved drinking-water sources 2008, urban 95 99 99 % of population using improved drinking-water sources 2008, rural 77 78 72 % of population using improved sanitation facilities 2008, urban 51 84 56 % of population using improved sanitation facilities 2008, rural 57 65 37 Estimated adult HIV prevalence rate (aged 15-49), 2009 11 17.8 14.3 Orphans, Children (aged 0-17) orphaned due to all causes, 2009, estimate (thousands) 1000 3400 1400 Youth (15-24 years) literacy rate, 2004-2008*, male 87 96 98 Youth (15-24 years) literacy rate, 2004-2008*, female 85 98 99 Number per 100 population , 2008, phones 12 91 13 Number per 100 population , 2008, Internet users 2 8 11 Life expectancy, 1970 41 53 55 Life expectancy, 1990 49 61 61 Life expectancy, 2009 54 52 46 GNI per capita (US$), 2009 280 5770 a GDP per capita average annual growth rate (%), 1970-1990 -0.1 0.1 -0.4 GDP per capita average annual growth rate (%), 1990-2009 0.5 1.2 -1.9 Average annual rate of inflation (%), 1990-2009 28 8 62 % of population below international poverty line of US$1.25 per day, 1994-2008* 74 26 - Source:
  • 6.
  • 7. POPULATION DEMOGRAPHICS SADC National SADC Aggregated Population 2006 2007 2008 2009 2010 Angola 15.9 16.3 16.8 17.3 17.8 280 277 Botswana 1.7 1.8 1.8 1.8 1.8 275 DRC 63.7 65.8 68.1 70.4 72.8 Population (millions) Lesotho 1.9 1.9 1.9 1.9 1.9 270 267.1 Madagascar 19.2 19.7 20.2 20.8 21.3 265 Malawi 12.8 12.9 13.1 13.5 15.9 260.3 260 Mauritius 1.3 1.3 1.3 1.3 1.3 255 253.8 Mozambiqu 19.9 20.6 21.2 21.8 22.4 e 248 250 Namibia 2 2 2.1 2.1 2.1 Seychelles 0.9 0.9 0.9 0.9 0.9 245 South Africa 47.4 47.9 48.7 49.3 50 240 Swaziland 1 1 1 1 1.1 235 Tanzania 37.5 38.3 39.5 40.7 42 Zambia 11.8 12.2 12.5 12.9 13 230 Zimbabwe 12 12 12.1 12.2 13.5 2006 2007 2008 2009 2010 SADC Region 248 253.8 260.3 267.1 277 Source, SADC
  • 8. RURAL AND URBAN POPULATION Steady increase in urban population and decline in rural population Source: Southern African Development Community, 2012
  • 9. : Growth (%) -20 -10 0 10 20 30 40 50 An go la Bo ts w an a Source, SADC D R C Le so th o M al aw i M au ri t iu M s oz am bi qu e N am ib So ia ut h Af ric a Sw az il a nd Fig 2: SADC – Inflation, 2008-2010 Ta nz an ia Za m 2008 bi a Zi m ba bw 2009 e SA D 2010 C
  • 14.  Up to 80% of the population in SADC depends on agriculture  Crops  Livestock  GDP contribution (see figure below)
  • 16. FACTORS LIMITING ATTAINMENT OF AGRICULTURAL POTENTIAL IN THE REGION  Poverty – limited use of external inputs such as fertilizers, poor asset base e.g. Animals for land preparation  Technological limitations  Gender imbalance in access to production resources and decision making  Policy limitations  Limited/lack of financing or access to credit by smallholder farmers  Limited technical know-how/capacity  Limited access to information  Poor access to markets  Poor infrastructure – roads, rail, air, ports, storage facilities, etc  High postharvest losses on farm, in transit to markets, during marketing  Limited diversity of crops/livestock  Climatic challenges – floods, droughts, variability in rainfall  High land degradation problems (erosion, siltation, salinity, deforestation etc)  Disease pandemics – human  Pests and diseases outbreaks – and implications on output, qulity and marketability  Conflicts/unrest  Low investments into agricultural resach and development
  • 19. Low investments into agriculture Source: Rugube, 2011
  • 20. 5.0 Botswana 4.5 Lesotho Malawi Maize Yield (tonnes per hectare) 4.0 Mozambique South Africa 3.5 Zambia 3.0 Zimbabwe 2.5 2.0 1.5 1.0 0.5 0.0 Source, FAO STAT
  • 22. SOME POSSIBLE WAYS TO ADDRESS THE CONSTRAINTS  Development and promotion of suitable technologies  Empower women – address gender disparities and mainstream issues such as HIV/AIDS  Promote policies that are more favourable to smallholder farmers including subsidies as appropriate  Improved credit access or financing of rural farming interventions  Improved access to quality inputs  Capacity building including information generation, networks and communication  Support to establishment of sustainable market linkages  Infrastrucre development including local level storage facilities and handling and processing zones  Reduce postharvest losses – improve onfarm storage etc  Diversify production and support COMMERCIALIZATION OF SMALLHOLDER FARMING  Increase productivity  Climate mitigation through e.g. small scale irrigation  Building up the asset base for the poor – e.g livetsock  Social protection measures  Addressing soil and land degradation problems (erosion, siltation, salinity, deforestation etc) – intergrating agroforesty  Smallscale agroprocessing initiatives – value addition  Increased public and private sector invetsments into agricultural research and development
  • 23. Selected imports by Malawi - 2009 160000 140000 Quantity (tonnes) 120000 100000 Major sources 80000 60000 40000 20000 0 90000 80000 Total Value ('000 US $) 70000 60000 50000 $81 million of wheat imported in 40000 2010, a 23% rise from 2009 30000 20000 10000 0
  • 25. SUPPORTING VULNERABLE FARMERS TO INCREASE PRODUCTIVITY IN SOUTHERN AFRICA Recovery from emergencies/disasters, risk reduction and mitigation • Access to inputs and market linkages (e.g. Contract farming) • Improved production techniques • Mitigation to disastsers - diversification, conservation farming techniques, local seed production, small scale irrigation, gardening • Small livestock projects including pass on-schemes • Control of pests and diseases • Improved postharvest handling
  • 26. Most common method of planting under smallholder farming
  • 27. CONSERVATION AGRICULTURE Conservation agriculture (CA) can increase maize yields by up to 200% Source: ACT and FAO
  • 28. Conservation agriculture can help farmers to prepare their fields and plant on time 100 90 80 70 percent of plots 60 50 40 30 20 10 0 ay ly t y ry ne h ril er r r r us be be be ar c Ju Ap ua ob M ar Ju g nu m m m Au br M ct ve ce te Ja O Fe p No De Se timing of field preparation CF basins plow Source: Haggblade and Tembo (2003)
  • 29. Practicing various forms of crop mixtures/rotations under CA help to improve soil health and diversiy food Source, ACT
  • 30. AWARENESS AND CAPACITY BUILDING REQUIRED AT ALL LEVELS Training of agricultural extension workers
  • 31.
  • 32. Capacity building – practical sessions for farmers Awareness and training among farmers and extension staff Source, ACT and GART
  • 33. Increasing awareness among policy and decision makers Source, FAO and ACT
  • 34. More research on the farms
  • 36. CAN AGRICULTURE HELP SADC COUNTIRES TO DEVELOP? http://www.sarpn.org/documents/d0000393/index.php  Most are pre-dominantly agricultural based  Food dominates agricultural trade  Enhanced agricultural trade could help to  fight poverty  promoting regional integration  increasing economic growth and welfare.  The World Bank estimates - 10% increase in crop yields could reduce by 9% the proportion of people surviving on less than $1 per day.  IFPRI: Increased farm incomes (by $1) can significantly increase rural incomes (by between $0.5 and $1.5)
  • 37. MALAWI AS AN EXAMPLEOF AGRICULTURE-BASED ECONOMIC GROWTH  2005 -launched an improved seed and fertilizer voucher subsidy programme targeted at the vulnerable households  Increased maize yields observed – see earlier graph  Positive balance on maize supply – surplus exported
  • 38. Malawi Agricutural Value and GDP 3000 12 Gross Production Value of food (million US$) 2500 10 Gross Production Value (million US$) Gross Production Value of Tobacco (million US$) 2000 GDP Growth 8 GDP Growth (%) 1500 6 1000 4 500 2 122 108 116 113 153 109 65 0 0 1980-89 1990-94 1995-99 2000-2005 2006 2007 2008 According to NEPAD CAADP report, Malawi is among the Source: FAO STAT; SADC countries allocating more than 10% of their annual budgets to agriculture
  • 39. Malawi is one of the countries reported to be allocating more than 10% (2007 CAADP report) Source: http://www.nepad.org,
  • 40. GLOBAL TRADE AND AFRICAN SMALLHOLDER FARMERS – OBSTACLES FACED IN COMPETING WITH WESTERN COUNTRIES  Quota system  More border restrictions – exporting as a country rather than as region – compare e.g. with EU  Competitiveness – costs of production  Subsidies in developed countries which may render their goods cheaper than those from developing countries  Quality standards of produce is lower  Exporting primary or semi processed products  Trade policies – need for regional trade policies to conform to a global economy  SADC countries are members of other regional trading block, such as COMESA - overlaps in trade
  • 41. General exports from the SADC Region 45 Yr 2000 40 Proportion of export (%) 35 Yr 2007 30 25 20 15 10 5 0 Source: Negasi 2009
  • 43. MILLENIUM DEVELOPMENT GOALS  Goal 1: Eradicate extreme poverty and hunger  Goal 2: Achieve universal primary education  Goal 3: Promote gender equality and empower women  Goal 4: Reduce child mortality  Goal 5: Improve maternal health  Goal 6: Combat HIV/AIDS, malaria and other diseases  Goal 7: Ensure environmental sustainability  Goal 8: Develop a global partnership for development
  • 44. ACKNOWLEDGEMENTS  All sources of information used  All organizations and projects that I have worked for and with