Digitalization in the Agribusiness Value Chain and Payment Systems: Evidence from Sub-Saharan Africa
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The African agribusiness sector and those of other developing regions of the world
are characterized by disorderly patterns in the value chain system. The agriculture market in
Africa has enormous potential with an anticipated size of $1 trillion by 2030. However, the
average African farm performs at only 40% of its potential. Also, consistent increase in
population size and a consistent growth rate of above 2.5% in the region create dire concern for
food availability. This study examines the extent to which digitalization affects agribusiness
value chain and the payment system in the sub-Saharan African region. The descriptive and
pooled ordinary least square regression analysis was employed to determine the statistical
significance of digitalization on the payment system and agricultural productivity in the region
over the period 2000 to 2019. The results revealed that digitalization has a significant impact on
agricultural productivity for the region. The study recommends a wholesome utilization of
blockchain technology to ensure better farmland usage, improved access for all stakeholders in
the value chain framework, enhanced productivity, food security, and reduced extreme hunger
and poverty. This will ensure that Africa will become empowered to feed itself and use its
competitive advantage of good weather, arable land, labor, and water to compete globally.
Keywords
H Social Sciences (General), HF5601 Accounting