Powering Agriculture: Unlocking Africa’s Next Green Revolution

This policy briefing by the South African Institute of International Affairs argues that increasing electricity access, particularly through decentralized solar mini-grids, is critical to unlocking agricultural productivity and job creation in Africa. Using Uganda as a case study, the document highlights a significant 'value-addition gap' where low productivity and poor post-harvest infrastructure limit economic growth. It recommends a coordinated approach combining energy infrastructure with the reform of agricultural cooperatives, expanded access to micro- and commercial finance, and targeted micro-enterprise training for rural farmers.

• Africa suffers from the world's lowest agricultural productivity per capita, driven largely by a lack of investment for smallholder farmers. While agriculture represents over 32% of the continent's GDP and employs over 65% of its labour force, the sector struggles to absorb new workers due to low profitability and productivity.
• There is a substantial 'value-addition gap' in African agriculture. Post-harvest value added to produce in Africa is only $40 per ton, which is one-fifth of the value added in high-income countries. Smallholder farmers produce 85% of sub-Saharan Africa's agricultural output, yet 75% use only hand tools and only 5% of cultivated land is irrigated.
• Electricity is a vital enabler for agricultural productivity, though the sector currently uses only 2% of the continent's total electricity. The World Bank identifies thirteen major agricultural value chains in sub-Saharan Africa with high electricity value-add that are projected to create 6GW of demand by 2030.
• In Uganda, the lack of reliable electricity and the collapse of cooperative structures have hindered maize processing. Many farmers rely on low-quality diesel mills, and high-capacity mills are concentrated in urban areas. Analysis suggests that over 60% of Uganda's maize croplands could be most cost-effectively served by mini-grids, many of which are in districts currently lacking milling capacity.
• Financial constraints severely limit the ability of African smallholders to improve yields. In Uganda, over 60% of maize farmers cannot afford any cash inputs. While the addressable market for agro-processing and irrigation in sub-Saharan Africa is estimated at $11 billion, the serviceable market drops to $700 million when adjusted for the farmers' ability to pay.
• Poor post-harvest handling leads to significant economic losses. In Uganda, approximately 30% of annual maize production (about 500,000 tonnes or $4.5 million) is lost. Across sub-Saharan Africa, the World Bank estimates annual post-harvest grain losses at $4 billion, exceeding the total food aid received by the continent over the last decade.
• The document recommends three primary policy focus areas for the AU-EU partnership: the reform of cooperative structures to achieve economies of scale, the rapid deployment of mini-grids in farming communities, and the provision of micro- and commercial finance alongside accessible micro-enterprise training.

APA

SHIRLEY, R. (2020). Powering Agriculture: Unlocking Africa’s Next Green Revolution. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2020/09/Policy-Briefing-207-shirley.pdf

Chicago

SHIRLEY, REBEKAH. Powering Agriculture: Unlocking Africa’s Next Green Revolution. South African Institute of International Affairs, 2020. https://saiia.org.za/wp-content/uploads/2020/09/Policy-Briefing-207-shirley.pdf.

Wikipedia

{{cite report |last1=SHIRLEY |first1=REBEKAH |title=Powering Agriculture: Unlocking Africa’s Next Green Revolution |publisher=South African Institute of International Affairs |date=August 2020 |url=https://saiia.org.za/wp-content/uploads/2020/09/Policy-Briefing-207-shirley.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shirley2020powering, author = {SHIRLEY, REBEKAH}, title = {{Powering Agriculture: Unlocking Africa’s Next Green Revolution}}, institution = {South African Institute of International Affairs}, year = {2020}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2020/09/Policy-Briefing-207-shirley.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }