Africa’s livestock sector supports more than 350 million people but loses an estimated US$4 billion annually in unrealised economic potential, highlighting the need for stronger investment, better market access and improved animal health systems.

Livestock provides millions of African households with food, income and productive assets, while supporting trade, processing, transport and employment. Yet pastoralists and small-scale producers continue to face fragmented markets, climate risks, limited financing and uncertain access to buyers, making it difficult to attract commercial investment.

The challenge extends beyond a shortage of capital. Weak market information, inconsistent regulations, unreliable supply chains and uncertainty over sales can prevent otherwise viable livestock businesses from securing financing. Many countries also face the circulation of substandard and falsified veterinary medicines, uneven regulatory capacity, dependence on imported animal health products and growing antimicrobial resistance.

Regional trade and market access key to unlocking growth

Public investment remains essential to addressing these constraints, but government spending has frequently fallen short of commitments. Under the 2003 Maputo Declaration on Agriculture and Food Security, African governments pledged to allocate at least 10% of national budgets to agriculture and rural development. More than two decades later, most countries have yet to meet that target.

Africa’s annual food import bill was estimated at approximately US$70 billion in 2025. Although this includes products beyond livestock, it illustrates the scale of demand that African producers could serve more competitively through stronger domestic production, processing and regional value chains.

The African Union–Inter-African Bureau for Animal Resources (AU-IBAR) is working with governments, regulators and investors to address fragmented livestock markets and strengthen regional trade.

Through its Integrated Regional Livestock Value Chain Transformation Programme, AU-IBAR seeks to connect priority livestock value chains with trade corridors, market access and investment. Coordinated standards and policies are intended to make cross-border trade more efficient while creating opportunities for private-sector financing.

The Africa Pastoral Markets Development Platform is also working to strengthen pastoralists’ participation in markets and improve the resilience of their enterprises. Its approach supports commercially viable investment pathways that could unlock up to US$500 million in pastoral investment opportunities while improving consumer access to livestock products.

More predictable regional markets could encourage investment in meat and dairy processing, transport, animal feed and veterinary services. Harmonised standards, efficient trade corridors and coordinated disease control would also help reduce transaction costs and make livestock businesses more attractive to investors.

East African initiatives demonstrate investment opportunities

Several East African countries are pursuing initiatives to improve livestock productivity and strengthen commercial value chains.

Ethiopia, which has one of the world’s largest livestock populations, is addressing gaps in animal feed, productivity, processing and market access through improved breeds, forage, animal health services and investment in dairy and poultry.

Uganda’s livestock sector contributes approximately 17% of agricultural GDP. The country is investing in breeding, feed, genetics, animal health and dairy infrastructure to increase productivity and unlock further economic opportunities.

Rwanda has identified US$169.8 million in investment opportunities across pig and poultry production, covering genetics, animal feed, production hubs and slaughterhouses.

In Kenya, livestock contributes 12% of GDP and accounts for 42% of agricultural output. The Kenya Pastoral Market Development programme, implemented by Strathmore University Business School with catalytic funding from the Gates Foundation, is working to improve pastoral market systems and commercial viability.

Across both phases of the Kenyan programme, off-takers have purchased more than 334,000 sheep and goats from pastoralists. Women account for 54% of registered pastoralists, while participating households earn an estimated average of more than US$600 from livestock sales to off-takers.

These results illustrate how market access, support services and risk management can help transform livestock production into more commercially viable enterprises.

Public and private finance must work together

The African Union’s Comprehensive Africa Agriculture Development Programme Strategy for 2026–2035 aims to build resilient and sustainable agrifood systems, including by tripling intra-African trade in agrifood products and inputs by 2035.

Achieving these ambitions will require coordinated financing from governments, development partners, philanthropic organisations and private investors.

Public finance is needed for foundational infrastructure and services, including veterinary care, disease surveillance, roads, market facilities, research, data systems and cross-border trade frameworks. Philanthropic funding can help test new business models, strengthen producer organisations and demonstrate which approaches can operate at scale.

Private capital can then support commercially viable enterprises across the livestock value chain, from production and animal feed to processing and distribution.

Climate change adds urgency to the need for coordinated investment. Rising temperatures, prolonged droughts and flooding threaten livestock farmers and pastoral communities across Africa. Investment strategies must therefore strengthen climate resilience while protecting productive assets, business revenues and long-term returns.

Africa’s livestock potential will remain underused unless governments improve animal health services, strengthen market infrastructure and reduce barriers to regional trade. Investors and development partners also have a role in expanding proven business models, supporting local processing and creating opportunities for women and young people.

The priority is to make investment accessible to more livestock producers and pastoral communities. Converting Africa’s livestock wealth into resilient livelihoods, competitive enterprises and stronger regional trade will be essential to building a more productive and sustainable agrifood economy.