Subsidies are critical to boost Africa's agricultural sector

Africa, especially the eastern and southern regions, where the agricultural sector is central for food and nutrition security, economic development, and rural livelihoods, subsidies and broader public support policies are critical to building resilient, inclusive food systems to advance sustainable development objectives 

Input subsidy programmes, including inorganic fertiliser and maize seed, eat up most of the public investments, however. It should rather be channelised towards broader policy interventions that cover extension and research and development. 

The International Institute for Sustainable Development has released a report titled 'From Subsidies to Sustainability', trying to identify the best conditions for reforming public support to agriculture improve productivity, equity and environmental sustainability outcomes in Eastern and Southern Africa? It takes note of public support and reform experiences in Kenya, Malawi and Zambia, exploring how different subsidy models have influenced development outcomes and identifying lessons learned from these experiences.

Kenya, for example, can rely on centralised subsidy programmes for prompt stabilisation of input prices in cases of market volatilities, but affect longer-term progress on equity and sustainability goals.

In Malawi, sustained long-term efforts in the way of soil health pilots can transform agriculture and food systems to grow resilient but may come at the cost of temporary reductions in yields.

Subsidies are more than just input price reductions, going beyond affordability to also include equitable access. Access inequality marked many African countries, where the poorest and most marginalised farmers get left out of available schemes. While reforms have the power to cut down the costs of agricultural inputs, it cannot guarantee equal access unless distribution points are identified strategically to ensure uniform supply.

Arranging awareness programmes also play a significant role in expanding the reach of subsidies and support schemes. The effectiveness of subsidies also depends on soil health. Investments to boost the quality of degraded soils can ensure better results from fertilisers. Regional policy frameworks, such as the African Fertiliser and Soil Health Plan (2024–2034) are increasingly identifying the bridges that connect soil health and yields, as part of integrated soil health management and improved soil health for sustainable productivity growth.

Early findings from Malawi’s soil health pilots, corroborated by results from soil health pilots in India, points towards the need for organic and blended organic-inorganic inputs over inorganic fertilisers alongside support for soil management to increase yields.

Reforms and their impact are influenced by a combination of fiscal pressure, broader policies and local conditions for farmers. Price shocks in Kenya, debt reform in Zambia, and foreign exchange constraints in Malawi all played a role in creating space and political will for reform. The outcomes of these reforms depended on tenure security, access to extension services, the quality of inputs, access to finance, and markets for agricultural produce.