African agriculture has the potential to advance up to 50% of the United Nations’ Sustainable Development Goals (SDGs), yet the sector remains severely underfunded, according to a new report by Boston Consulting Group (BCG) in collaboration with the Paris Peace Forum.
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In 2022, African farms received just $49bn in investment — a quarter of the estimated $200bn needed to unlock the sector’s full potential.
Investment gaps
The agricultural sector sustains 70% of Africans, most of them women, and contributes roughly 30% of the continent’s GDP. Despite this, African farmers receive only $140 per year on average, compared with $1,300 globally. Limited irrigation, mechanisation, and other productivity constraints force Africa to import over $27bn in cereals annually — a figure projected to rise to $110bn by 2030 if investment gaps are not addressed.
“Investing in African agriculture is about more than feeding the continent. It’s about transforming Africa into a driver of global food security, resilience, and economic growth,” said Younès Zrikem, Managing Director and Partner at BCG in Casablanca and report coauthor. “Agriculture offers one of the most direct and impactful ways to reduce poverty, empower women, and build long-term climate resilience.”
Agriculture as a triple win
The report notes that strengthening agriculture can tackle poverty, hunger, and gender inequality while addressing health and education challenges. More than 400 million Africans live in extreme poverty, and 60% of the world’s acutely food-insecure people are on the continent. Chronic malnutrition affects 290 million Africans, impairing health outcomes and learning for 45 million children under five.
Women make up 40% of the global agricultural workforce, meaning investments in African farms directly support gender equality. Climate-smart farming is also crucial: improving agricultural systems could help reduce the projected displacement of 40% of the world’s climate migrants by 2050.
“Strengthening Africa’s agricultural systems is not just a necessity for the continent, it’s just as important for the rest of the world,” said Zoe Karl-Waithaka, managing director and partner at BCG in Nairobi. “With the right investment, Africa can meet its own growing food needs, safeguard livelihoods for millions of farmers, and make a decisive contribution to global climate action.”
Closing the funding gap
Public spending on agriculture across Africa averages just 3% of government budgets, well below the African Union’s 10% target, with only Malawi and Ethiopia consistently meeting the benchmark. Private-sector investment represents only 3% of total funding, compared with 10% globally.
“Africa’s agricultural potential remains vastly underleveraged, not due to lack of opportunity, but due to underinvestment,” said Olayinka Majekodunmi, partner at BCG in Lagos. “With the right incentives, blended financing, scalable innovations, and regional collaboration, we can unlock a new era of agricultural transformation — one that creates jobs, enhances food systems, and positions Africa as a global hub for sustainable development.”
In June 2024, the Paris Peace Forum launched the Agricultural Transitions Lab for African Solutions (ATLAS), promoting investment, transparency, and accountability. The 2x30 Challenge calls on funders to double annual investment from $49bn to $100bn by 2030.
Karl-Waithaka concludes: “African agriculture is not a peripheral issue but a global priority. With the right investment, policy alignment, and international collaboration, Africa can transform its agricultural sector into a cornerstone of sustainable development.
“Bridging the funding gap is not just a moral imperative; it is a strategic opportunity to unlock progress across poverty reduction, gender equality, climate resilience, and food security. The time for action is now, because when Africa’s farms thrive, the world moves closer to achieving the SDGs.”
