Our view in the South is that subsidies are doing great damage to African agriculture. On one hand, huge producer subsidies in Europe and the United States promote imports into Africa and elsewhere, below the true costs of production, thereby undermining African producers. On the other hand, significant public expenditure on agriculture across Africa is channelled to subsidising conventional inputs, especially synthetic fertiliser, hybrid seeds, and pesticides. We note and share the widespread concern about deep environmental, social, and economic harms being done and we join the calls for reduction or repurposing of these harmful subsidies.
With this view in mind, we wanted to deepen our understanding of the scale of the problem and the possibilities for financing transitions to more sustainable production systems. Our initial research reveals this to be a complex topic. It has also foregrounded that the issue of harmful subsidies and financing for the environment cannot be separated from broader economic inequities centred on the unjust and unsustainable debt burden in Africa. This has to be resolved as a key element of an effective and sustainable response to the ecological and social crises bearing down on us. This backgrounder offers a first cut from where we stand. No doubt, deeper analysis is required as well as engagement with wider networks to develop practical ways to ensure a shift in financing towards ecological and socially just production for Africa and the world.