Industry - Agriculture

An overview of the Agriculture sector in East Africa

Agriculture has, for many years, formed the backbone of East Africa's economy: the agriculture sector contributes about 60% of the Gross Domestic Product (GDP), constitutes about 50% of the export earnings and accounts for 80% of the region's employment, mainly in the rural areas. In addition, the sector contributes more than 75 per cent of the total export earnings and about half of the tax revenue, while providing for most of the region's food requirements.

East Africa's tea sector is a dominant and the coffee sector has started to pick up following a decline in the recent past. The horticultural and flora sectors have seen unprecedented growth over the past years as more companies venture into production and export of flowers and fresh produce.

The sugar industry has faced significant challenges and it is the regulator's intention to improve the sector. This industry is expected to show good growth over the next few years, should stated policies be implement.

The livestock subsector in particular is an integral part of East Africa's economy. The subsector contributes about 20% of the region's GDP. The livestock subsector as a whole contributes about 40% to the agricultural GDP and provides food which is consumed in the form of meat, milk, mile products and eggs. Other sectors where the country has significant resources include cotton, sisal, cashew nuts, forestry, and fishing.

East Africa's agricultural sector directly influences overall economic performance through its contribution to GDP. Periods of high economic growth rates have been synonymous with increased agricultural growth.