More money needed for Africa’s agriculture sector

Africa’s low budget allocation for agriculture does not seem to recognize that most of its citizens are farmers, says a new report by Action Aid. The report looked at a number of countries and their regular practices regarding agriculture and it stated that most countries did not meet the 10 percent budget target for the agriculture sector.
The report places Ethiopia among only seven countries that have managed to reach the 10 percent budget target constantly.
African public spending on agriculture per worker declined from USD152 in 1980-89 to just USD45 in 2005-07. By contrast, every other region of the world witnessed increases in such spending over the same period.
The ‘Walk the talk’ report suggests that African countries’ governments can get the finance that is needed for their agriculture sectors through several measures such as reducing military spending as well as abolishing massive tax exemptions given to companies.
According to recent research done by Action Aid, four East African countries Kenya, Uganda, Tanzania and Rwanda lose up to USD 2.8 billion every year from tax incentives and exemptions their governments provide. Clamping down on the illicit financial flows, mainly through tax evasion, which cost Africa an average of USD 60 billion a year during 2005 to 2010, is also another suggestion the report provides. 

Source The Capital Newsletter Ethiopia

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