From Subsidies to Sustainability
Rethinking public support to agriculture in sub-Saharan Africa
As governments in sub-Saharan Africa face increasing fiscal and climate change-related pressures, improving agricultural subsidy programs has become a priority. This report looks at lessons from efforts to reform public support to agriculture in Malawi, Kenya, and Zambia, exploring impacts on soil health, climate resilience, economic growth, equity, and broader sustainable development outcomes.
Key Findings
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Degraded soils negatively impact yields and undermine the effectiveness of existing subsidy programs. Evidence suggests combining organic inputs, soil management practices, and improved agronomic support can improve soil health and productivity.
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The effectiveness of input subsidies is significantly impacted by broader policy, legal, and institutional frameworks. Farmers’ ability to benefit from these depends on factors such as access to information and affordable finance, secure rights to land, and the existence of functioning markets.
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Existing subsidy programs can be effective in the short term at lowering input costs and stabilizing production during shocks. However, they often reinforce input-heavy production systems and impede diversification, slowing the transition to more sustainable and climate-resilient production.
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Successful subsidy reform requires complementary investments in infrastructure, data systems, input quality standards, land governance, and market development, as well as strong institutions, legal frameworks, and governance systems.
Agriculture remains the backbone of many economies in sub-Saharan Africa, providing livelihoods, employment, and food security for millions of people. Yet despite its strategic importance, public spending on agriculture remains below the African Union’s target. Where support does exist, it is typically concentrated in input subsidy programs, particularly for inorganic fertilizer and maize seed.
While these programs have helped increase input use and supported productivity gains in some instances, evidence suggests that production increases are uneven and that these programs also have unintended negatives impacts, including on soil health. As governments face increasing fiscal constraints, climate impacts, and land degradation, improving the effectiveness of agricultural spending has become an urgent priority. This report examines efforts to reform input subsidy programs in Kenya, Malawi and Zambia, exploring how different approaches to subsidy reform influence productivity, equity, soil health, climate resilience, and broader sustainable development outcomes.
The case studies show reform is possible, but outcomes depend heavily on program design and implementation, as well as political and institutional factors. Based on these insights, the report identifies a clear set of policy priorities to design reforms that help build productive food systems and deliver long-term sustainability.
Participating experts
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