From Subsidies to Sustainability

The report analyzes the transition from traditional input subsidies to sustainable public support for agriculture in sub-Saharan Africa. It argues that while inorganic fertilizer subsidies provide short-term yield gains, they often lead to soil degradation, fiscal strain, and inequitable access. Through case studies in Kenya, Malawi, and Zambia, the document demonstrates that integrating soil health management, utilizing digital eVoucher systems for better targeting, and aligning subsidies with broader land tenure and market reforms are essential for long-term food system resilience.

• There is a fundamental trade-off between short-term productivity gains and long-term sustainability. Centralized subsidy programs can stabilize prices during crises but may undermine equity and sustainability, whereas slower, soil-health-focused reforms may cause temporary yield reductions while building long-term resilience.
• Reducing the price of agricultural inputs is insufficient to ensure equitable access. Access is heavily influenced by delivery mechanisms; for example, Kenya's return to centralized depots increased travel distances and transaction costs for remote farmers compared to previous digital eVoucher systems using private agrodealers.
• Degraded soils significantly reduce the effectiveness of inorganic fertilizer subsidies. In all three studied countries, high levels of public spending on fertilizers were undermined by soil acidification and nutrient imbalance, whereas blended organic-inorganic inputs combined with soil management showed potential for higher yields.
• Digital tools like eVouchers and farmer registries improve transparency and targeting by eliminating 'ghost' farmers and reducing rent-seeking. However, they can create new barriers for those with limited digital literacy or poor rural connectivity.
• Fiscal pressures, including rising debt servicing burdens and foreign exchange constraints, are creating 'windows of opportunity' for governments to repurpose agricultural spending away from costly input subsidies toward more efficient interventions.
• Subsidy reform is often hindered by political economy challenges, as input subsidies provide visible, immediate benefits that are politically attractive to rural electorates, creating 'behavioural lock-in' and vested interests among input suppliers.
• The effectiveness of subsidy reforms depends on complementary frameworks, such as land tenure security and regulatory standards for inputs. Farmers are less likely to invest in long-term soil health improvements if they lack secure land titles or if the quality of organic inputs is inconsistent.

APA

McConnell, C. (2026). From Subsidies to Sustainability. International Institute for Sustainable Development. https://www.iisd.org/system/files/2026-06/rethinking-public-support-agriculture-sub-saharan-africa.pdf

Chicago

McConnell, Claire. From Subsidies to Sustainability. International Institute for Sustainable Development, 2026. https://www.iisd.org/system/files/2026-06/rethinking-public-support-agriculture-sub-saharan-africa.pdf.

Wikipedia

{{cite report |last1=McConnell |first1=Claire |title=From Subsidies to Sustainability |publisher=International Institute for Sustainable Development |date=June 2026 |url=https://www.iisd.org/system/files/2026-06/rethinking-public-support-agriculture-sub-saharan-africa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mcconnell2026from, author = {McConnell, Claire}, title = {{From Subsidies to Sustainability}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = jun, url = {https://www.iisd.org/system/files/2026-06/rethinking-public-support-agriculture-sub-saharan-africa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }