Private Investment in Agricultural Research and TechnologyTransfer in Africa
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Date
2011
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Abstract
This study is based on surveys of private-sector innovation and research in Kenya, Senegal, South Africa, Tanzania, and Zambia in 2009 and 2010. With the exception of South Africa, Private R&D in Sub-Saharan Africa is still limited, but it is growing rapidly in several countries and is concentrated in the seed industry. The study found that innovations in plant varieties, machinery, pesticides, fertilizers, and poultry imported by private agribusiness have been important sources of new agricultural technology. A search of the literature shows that private technology increased agricultural productivity in Africa. The adoption of proprietary hybrids of maize increased yields in Tanzania. Modern poultry technology increased poultry productivity in Nigeria, and private sugarcane research in South Africa increased productivity there. Many studies show that proprietary genetically modified maize and cotton improved the yields, incomes, and health of smallholder farmers in South Africa and Burkina Faso. Government policies that encouraged research on private technology and its introduction include the liberalization of agricultural input and output markets by reducing trade barriers, eliminating government monopolies, and allowing local and foreign private firms to enter agribusiness. A second set of important policies include a stable policy and regulatory environment and reduced taxation on the agricultural sector. Once liberalization and favorable policies are in place, government investments in R&D and higher education and technology policies, such as strengthening patents, can encourage more private innovation and R&D.
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Technology