Trade and agriculture
Agriculture and its connections to trade are critical in supporting sustainable development in the Least Developed Countries (LDCs), as the highest share of employment is typically in agriculture, and most poor live in rural areas. As the dominant source of employment, agricultural productivity is the main determinant of the incomes of the majority of the workforce in the LDCs, and low productivity in agriculture is thus a major reason for the prevalence and persistence of poverty.
Investments in agriculture focused on Aid for Trade lead to significant impact on poverty reduction, contributing 1.6 times the impact of industrial growth and 3 times that of growth in the services sector. Therefore, securing equitable, inclusive and sustainable economic growth and development in the LDCs requires a focus on agriculture and targeted strategies tied to markets.
EIF works with many LDCs to support trade policies tied to agriculture, as well as supporting on-the-ground efforts to improve crop yields and quality, to increase processing capabilities and to access new markets. In Malawi, this has resulted in US$47 million in new agriculture exports.