Strategy for agricultural transformation in africa

New ways of driving modernization of agricultural commodity value chains, 
especially with the application of information and communication technology (ICT), are 
18
Smalley, 2013
19
AfDB, ‘Feeding Africa: An Action Plan for African Agricultural Transformation Report of Work Stream 
Sessions,’ 2015.
20
 FAOstat, 2013 data.

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emerging.
The use of ICT
 
can radically change the costs and delivery models used for a broad 
range of products and services to farmers and other actors along agricultural value chains. The 
Nigerian example of using an e-Wallet system for the distribution of input subsidies created 
both a far more efficient platform for driving input use versus the pre-existing public 
distribution system (where only 11% of subsidies by value were reaching farmers), as well as 
creating a platform to engage with and understand farmers. New forms of farmer extension 
using text or voice over mobile, and video, are reducing the cost and increasing the quality of 
training of farmers. A significant share of mobile and ICT-based service innovation – 
especially for the agriculture sector – is being driven within Africa, a potentially important 
source of comparative advantage versus other regions.

Figure 5: Agricultural transformation is already underway in several African countries
Source: Kenya National Bureau of Statistics; World Bank “Exporting Out of Africa—Kenya’s Horticulture 
Success Story” 2004; GRIPS “Global Value Chains and Market Formation Process in Emerging Export 
Activity: Evidence from Ethiopian Flower Industry” 2011; Observatory of Economic Complexity; Market 
Insider “Ethiopia cut flower industry's success story” 2015; Development (FMARD) Nigeria; The economist 
“If only Nigeria could revamp its Grow-Africa “Fertilizer Subsidy Reform Revives Nigeria Agriculture”; 
Federal Ministry of Agriculture and Rural farms” 2013; Dalberg analysis 
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