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Agriculture

10 SADC countries inject $1bn in agricultural subsidies, fail to ease rural poverty however

Tuesday, 12 July 2016 18:53

(Ecofin Agency) - Ten member countries of the Southern African Development Community (SADC) after investing $1bn in agricultural subsidies over the 16 past years failed to ease rural poverty in the region. This was revealed in a report from the African Centre for Biodiversity (ACB) who also said the overuse of hybrid maize seed and fertilizer deteriorated the quality of the soil in the region.

The governments concerned by the study have invested close to 30% of their agricultural budgets on large-scale farm input subsidy programmes (FISPS) since 2000. The programmes, which provide 30%-100% subsidies on the price of fertilizer and seed (normally hybrid maize), aim to reduce food insecurity and poverty in rural areas. However, results were far from meeting planned performances due to additional costs which were not taken into account, priority being given to hybrid maize only, corruption which favors the creation of secondary markets for input trading, or poor soil management techniques.

“In short, Fisps do not help build the resilient, sustainable farming and food systems that are necessary in a world facing diverse ecological, economic and social challenges. It is clear that a transition to agro-ecology is required as a matter of urgency, to bring about the sustainable food systems of the future,”the report

Aaron Akinocho

 
Finance


 
Mining


 
Telecom


 
Public Management


ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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