Resilient and inclusive rural transformation in sub-Saharan Africa under climate, demographic, and social change: Challenges and opportunities for income growth and job creation

Abstract

With climate change, globalization, and the nutrition transition, agricultural productivity growth is proving insufficient to bring about resilient and inclusive rural transformation in sub-Saharan Africa. In this paper, we review the evidence for a set of policy strategies, reflecting on how to expand labor opportunities and increase incomes with a focus on achieving greater inclusion. We argue that some well-known strategies remain critical for improving the efficiency of labor markets: expanding demand for labor and increasing formalization, especially in agrifood systems sectors. However, efficiency does not mean equality, and these strategies require careful targeting and intentional actions to redistribute resources to ensure inclusion. Whilst long-recognized strategies remain underfunded, initial endowments are essential to bring about inclusive transformation: growing human capital and productive resources and increasing women's empowerment. Finally, we suggest two emerging tools for labor market expansion and inclusivity: expanding jobs within the green transition and fostering resilient labor markets through social protection.