Can the agroprocessing sector create jobs in Africa?

Abstract

The lack of adequate employment opportunities continues to be one of the principal challenges hindering poverty reduction efforts in Africa. Despite sustained economic growth – at least until the Covid-19 pandemic – the African economy has not been able to absorb sufficient labour: between 2000 and 2014, a 1% increase in GDP was associated with only a 0.41% increase in employment. This low contribution of economic growth to job creation has mainly been explained by the limited role that the manufacturing sector plays in the African economy. In this context, the food sector has the potential to accelerate Africa’s economic transformation and development, and contribute to the much-needed job creation. Food system transformation in Africa has been shaped by the changing patterns of food demand, moving away from staple and unprocessed foods to high-value fresh, processed and convenience foods. By 2030, the African food market is expected to reach US$1 trillion, potentially making agriculture and agribusiness catalysts for job creation, development and poverty reduction. This policy brief offers insights on the potential of the agroprocessing sector to create decent and inclusive jobs in Africa, based on evidence from Ethiopia, Ghana and Tunisia.