Jan. 6, 2025 /Mpelembe Media/ — Africa’s widening economic gap despite significant social change highlights low agricultural productivity, hindered by factors like low technology adoption and underutilisation of land. The article also discusses the limitations of African manufacturing, focusing on low-productivity sectors and a lack of global competitiveness. Furthermore, it explores the challenges of economic transformation, suggesting that a simple replication of past industrial revolutions may not be sufficient for the continent. Finally, it proposes that alternative paths to development are needed to address these multifaceted issues.

Several factors hinder economic growth in Africa despite social changes, according to the sources:

Lack of productivity:

A significant issue is the low productivity of African workers. The “Africa gap” is defined in terms of GDP per person, and closing this gap is crucial. This involves increasing the productivity of each worker and a shift in the ratio of workers to non-workers.

Agriculture: 

The sources note that a majority of workers in Sub-Saharan Africa are still engaged in agriculture. However, their methods are often inefficient, with many using small, unproductive plots of land.

The value added per worker in agriculture is significantly lower in Africa than in “early transformers” in Asia.

There is a low adoption of technology and modern farming techniques.

Less than 5% of agricultural land is irrigated, further limiting productivity.

There is also a lack of access to finance and other resources for smallholder farmers.

While some farmers are trying new things like drought-resistant seeds, climate change threatens to cause future shocks, and there is no guarantee that new seeds and other such innovation will boost rural incomes.

Industrialisation:

The continent has struggled to replicate the “manufacturing miracle” seen in Asia.

Labour costs in Africa are high compared to other regions, despite low wages.

There is evidence that some factories in Africa have high-tech equipment but employ few workers, while others use inefficient methods with more workers.

Service Sector:

While the service sector’s share of the economy has grown, the jobs are often in low-paying casual work.

Urbanisation:

Though urbanisation is increasing, it is not necessarily leading to more productive work opportunities.

General Transformation:

Economist Robert Osei has noted that some African countries are experiencing social change without economic transformation.

The general process of African transformation may need to be focused on addressing sub-optimal friction that hinders productivity like barriers to trade.

Other Factors:

The sources suggest that the lack of a coherent industrial strategy also hinders economic growth.

The article notes that it may be that Africa’s development will follow a different model than East Asia’s.

Africa’s economic growth is hindered by low productivity, particularly in agriculture, challenges in industrialisation, and a service sector that does not offer high-paying jobs. These factors, along with an overall lack of a coherent industrial strategy, limit the continent’s progress despite social change.

African agricultural productivity lags significantly behind other regions globally.

Here’s a breakdown:

Low value-added per worker:

The value added per worker in agriculture in Africa is considerably lower than in “early transformer” countries in Asia.

Comparison with “early transformers”:

The value added per worker in early transformer countries was more than double that of Africa, which indicates a major difference in productivity.

Inefficient farming methods:

Many African farmers use small, unproductive plots of land, often less than two hectares, and employ methods more suited to the 19th century rather than modern practices.

Lack of irrigation:

Less than 5% of agricultural land in Africa is irrigated. This lack of irrigation contributes to lower and less reliable yields.

Low yields:

African cereal yields are less than half the global average, and less than one-fifth of the places with the most productive farms.

Limited use of technology:

There’s a low adoption of technology and modern farming techniques. Farmers lack access to finance, which limits their ability to adopt new farming techniques, buy better seeds, or invest in other productivity improvements.

Comparison with the past:

Although productivity has increased in agriculture since 1980, Africans are farming more land, not farming it more productively. For example, Sub-Saharan Africa’s cereal yields have tripled since 1980, but the land used has more than doubled.

Comparison with other regions:

The sources state that agricultural productivity in Africa is significantly behind other regions globally.

In summary, African agricultural productivity is considerably lower than in other parts of the world due to a combination of factors, including inefficient farming practices, lack of access to technology and resources, and limited irrigation. This results in lower yields and less value added per worker in the agricultural sector.

Urbanisation is progressing rapidly, with a significant shift of people from rural to urban areas. However, this urbanisation does not necessarily lead to more productive employment, and is partly the result of increasing rural poverty, and a search for alternatives to rural life. This contrasts with patterns seen in other regions where urbanisation has coincided with industrialisation and economic growth. This unique urbanisation pattern in Africa results in a growing informal sector in cities, and has implications for agriculture, which is seeing a reduction in the rural workforce.

Africa’s economic transformation is characterised by a unique set of challenges. While social changes like urbanisation are taking place, these have not led to significant economic development. The continent faces productivity challenges across various sectors, especially in agriculture and manufacturing. It may be that Africa is on a different path from other regions. The key issue, however, is that social change without accompanying economic transformation is not addressing the core challenges of productivity and economic growth.