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Targeting Public Spending to Expand Export and Marketing Opportunities for Key Commodities

MAFAP Policy Brief

Year of publication 2013

Pages 2p.

Author Agriculture and Economic Development Analysis Division

Product type Book (stand-alone)

Edition 1

Synopsis (short abstract) The MAFAP public expenditure analysis shows the level and composition of expenditure in support of agriculture and rural development. This includes national budget and aid flows at both centralised and decentralised level. This policy brief focuses only on expenditure allocated to infrastructure and marketing activities.

Language English

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    Unlocking public expenditure to transform agrifood systems in sub-Saharan Africa 2022
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    This policy brief highlights the main challenges of public spending on food and agriculture in selected sub-Saharan Africa (SSA) countries. Public spending – or expenditure – on food and agriculture is widely accepted as the most cost-effective strategy to drive structural transformation and poverty reduction in developing countries. So much so that back in 2003, countries in the African Union stressed agriculture as an engine for socioeconomic growth, and committed to allocate 10 percent of their national budgets to the sector. Almost 20 years later, most countries out of the sixteen analysed in the FAO study on ‘Public expenditure on food and agriculture in sub-Saharan Africa: trends, challenges and priorities’ still struggle to hit this development target. What, therefore, is stopping countries from spending more on the sector? Rather than a lack of political will, various factors such as constrained public budgets, limited fiscal space, and the burden of debt repayments are obstacles to higher public spending on agrifood systems. Moreover, the policy brief underscores two critical expenditure issues: budget execution and implementation. On average, over 20 percent of funds goes unspent, and this is more likely to occur in capital investment expenditures such as irrigation and road infrastructure. Raising additional resources for the sector where possible, unblocking already available resources and managing them effectively, as well as de-risking private-sector investments in the sector, and prioritizing spending with the highest returns, are the keys to unlocking public expenditure to help transform agrifood systems.
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