A new report by Boston Consulting Group (BCG), in collaboration with the Paris Peace Forum, positions African agriculture as a linchpin in solving two of the world’s most pressing challenges: hunger and climate instability. With the potential to advance up to 50% of the United Nations Sustainable Development Goals (SDGs), the sector remains critically underfunded — receiving just $49 billion in 2022, a quarter of the $200 billion estimated to unlock its full potential.

Investment Gaps Undermine Growth

Despite sustaining 70% of Africa’s population — most of them women — and contributing 30% to continental GDP, African farmers receive an average of $140 per year, compared to $1,300 globally. Limited access to irrigation, mechanisation, and productivity-enhancing technologies has forced the continent to import over $27 billion in cereals annually, a figure projected to reach $110 billion by 2030 if investment shortfalls persist.

“Investing in African agriculture is about more than feeding the continent. It’s about transforming Africa into a driver of global food security, resilience, and economic growth,”
— Younès Zrikem, Managing Director & Partner, BCG Casablanca

Agriculture as a Triple Win

The report highlights agriculture’s unique ability to simultaneously address poverty, hunger, and gender inequality, while improving health and education outcomes. With 400 million Africans living in extreme poverty and 60% of the world’s acutely food-insecure population residing on the continent, the stakes are high. Chronic malnutrition affects 290 million Africans, impairing development for 45 million children under five.

Women represent 40% of the global agricultural workforce, making agricultural investment a direct lever for gender equity. Climate-smart farming is equally vital: strengthening agricultural systems could reduce the projected displacement of 40% of the world’s climate migrants by 2050.

“With the right investment, Africa can meet its own growing food needs, safeguard livelihoods for millions of farmers, and make a decisive contribution to global climate action,”
— Zoe Karl-Waithaka, Managing Director & Partner, BCG Nairobi

Closing the Funding Gap

Public agricultural spending across Africa averages just 3% of national budgets, far below the African Union’s 10% target. Only Malawi and Ethiopia consistently meet this benchmark. Private-sector investment is similarly low, accounting for just 3% of total funding, compared to 10% globally.

“Africa’s agricultural potential remains vastly underleveraged, not due to lack of opportunity, but due to underinvestment,”
— Olayinka Majekodunmi, Partner, BCG Lagos

BCG calls for blended financing, scalable innovations, and regional collaboration to unlock a new era of agricultural transformation — one that creates jobs, strengthens food systems, and positions Africa as a global hub for sustainable development.

ATLAS and the 2×30 Challenge

In June 2024, the Paris Peace Forum launched the Agricultural Transitions Lab for African Solutions (ATLAS) to promote investment transparency and accountability. Its 2×30 Challenge urges funders to double annual agricultural investment from $49 billion to $100 billion by 2030.

“African agriculture is not a peripheral issue but a global priority… Bridging the funding gap is not just a moral imperative; it is a strategic opportunity,”
— Zoe Karl-Waithaka