Maravi

Central bank recommends agriculture-driven growth

Central bank recommends agriculture-driven growth
By Edwin Mbulo in Livingstone
Fri 02 Sep. 2011, 13:40 CAT

AGRICULTURE-RELATED growth is twice as effective in reducing poverty as growth based on other sectors of the economy, says Bank of Zambia deputy governor for Operations Dr Austin Mwape.

Officiating at the African Rural and Agricultural Credit Association (AFRACA) Southern African sub-regional (SACRAT) workshop on Wednesday, Dr Mwape said it had been further documented that agriculture was a proven driver of poverty reduction.

"When agriculture stimulates growth in Africa, the growth is twice as effective in reducing poverty as growth based on other sectors of the economy. In this regard, agriculture provides the largest source of employment in many countries and will remain the lead sector of comparative advantage," Dr Mwape said.

He said the recent global financial and food crises have led to renewed focus on agriculture and agri-business as priority sectors for spurring economic growth in Africa.

"For this to be effective, there is need to develop value chains that integrate producers and markets to make the agriculture sector more responsive to consumer demand," he said.

"The value chain approach should be aimed at building on conditions in the consumer market and emphasise the linkages and segments that connect the final product demanded by consumers all the way to the agricultural commodities produced at farm level."

Dr Mwape said the key segments in the value chain were the consumer market, trade logistics, packaging, postharvest risk management and agricultural production.

And Swaziland deputy bank governor Phil Mnisi said his entourage decided to attend the workshop with a view to joining AFRACA, adding that agriculture stimulates growth at grassroots levels.

Labels: AGRICULTURE, BANK OF ZAMBIA

posted by MrK @ 10:29 PM