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2.2 Sectoral performance I: Economic Report on Africa 2007

Guest post by: United Nations Economic Commission for Africa

Article Overview: African economies are experiencing a structural shift whereby the service sector is becoming an important driver of growth. In 2004, the service sector contributed 49 per cent of GDP growth compared to 36 per cent for industry (including mining and quarrying) and 15 per cent for agriculture. In 2004, all three sectors continued to grow, albeit at relatively low rates. The industrial sector had the highest growth rate at 9.05 per cent, although growth in the manufacturing sector fell by almost 3.8 per cent compared to 2003. Developments within each sector and for each subregion are discussed in more detail below.

2.2 Sectoral performance I: Economic Report on Africa 2007

African economies are experiencing a structural shift whereby the service sector is
becoming an important driver of growth. In 2004, the service sector contributed 49
per cent of GDP growth compared to 36 per cent for industry (including mining
and quarrying) and 15 per cent for agriculture. In 2004, all three sectors continued
to grow, albeit at relatively low rates. The industrial sector had the highest growth
rate at 9.05 per cent, although growth in the manufacturing sector fell by almost 3.8
per cent compared to 2003. Developments within each sector and for each subregion
are discussed in more detail below.

The agriculture sector

The contribution of agriculture to GDP ranges from a high of more than 33 per
cent in East Africa to less than 8 per cent for Southern Africa. It employs some 70
per cent of the work force and generates on average 30 per cent of Africa’s GDP. The
overall contribution of agriculture to GDP declined in 2004 due to the low performance
of this sector in the North and West African subregions (table 2.5).

Africa is considered a net food-importing region, except for some countries such as
South Africa. The largest share of imported products consists of food products (cereals,
livestock, dairy products, and to a lesser extent, fruits and vegetables). However,
exports of agricultural products represent an important source of foreign exchange
earnings for several African countries. The share of agricultural products in total
merchandise exports ranges from a high of more than 80 per cent for Sudan and
Burundi to a low of less than 1 per cent for Gabon and Equatorial Guinea. Their
leading export destination is the EU and the most important commodities exported
are fish and crustaceans, fruits and nuts, cotton, and vegetables.

Table 2.6 shows that commodity production in Africa registered a 1.7 per cent
increase in 2004 and a growth rate of 3.0 per cent over 1990-2004. Performance for
the main agricultural products exhibits high variation across subregions (table 2.6).
The year 2004 was a particularly good one for many important exportable commodities
such as cocoa beans, coffee and cottonseeds. In some countries, production
continues to be influenced by drought conditions. In North Africa, droughts have
adversely affected the production of strategic crops such as wheat, olive and citrus.
Southern African countries also continue to suffer from periodic droughts, especially
Swaziland and Zambia.

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Article Tags: Africa, agricultural products, agriculture, agriculture sector, East Africa, fruits and vegetables, GDP growth, growth rate, growth rate, South Africa, Southern Africa



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