1.3: Agro-Processing
Increase the contribution of agro-processing to economic growth, move up the value chain in key crops, and increase exportation
of agro-processed products.
Other Information:
Medium Term Expected Outcome -- The expected medium term outcome is substantial increase in contribution of agroprocessing
to GDP. The food and agro-processing sub-sectors account for more than 30 percent of manufacturing output with value addition
ranging between 30-35 percent. MEGS identified agro-processing as a high growth potential sector. Under the sector, processing
largely concentrated on tobacco, tea, sugar, cotton and wheat. However, agro-processing of fruits and vegetables, rice, cassava,
macademia, cashew nuts, irish potatoes and spices has potential for growth, but each of these are currently relatively small.
To achieve this, constraints facing the sector need to be addressed. These include poor and inadequate infrastructure such
as roads and electricity. In addition, unfavourable macroeconomic environment, low level of vocational skills, weak marketing
and distribution systems for raw crops, low productivity of smallholders, and high import duties on equipment. Key Strategies
-- Main strategies include; * Improving infrastructure for agro-processing, * Reviewing the policy and regulatory frameworks
impacting on agroprocessing * Building capacity for small scale enterprises, and * Improving productivity of smallholder
farmers.
Indicator(s):
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