Assessing the Impact of Input Subsidies on Agricultural Productivity in Sub-Saharan Africa: Applied Political Economy Analysis

dc.contributor.authorJoseph Manzvera
dc.contributor.authorMark Manyanga
dc.date.accessioned2026-01-29T09:13:24Z
dc.date.available2026-01-29T09:13:24Z
dc.date.issued2026
dc.description.abstractThe increasing policy interests and vibrant scholarly debate surrounding the impact of input subsidy programs in Sub-Saharan Africa have inspired a growing literature on how input subsidies affect agricultural productivity. The available empirical evidence provides contrasting views, with one school of thought supporting input subsidies as agricultural productivity catalysts, while another school of thought views input subsidies as agricultural policies that failed to stimulate productivity but instead imposed unsustainable pressure on national fiscal resources. Therefore, understanding the extent to which input subsidies influence agricultural productivity, the prevailing effect, and the drivers behind one effect or the other is a pressing matter to guide policy and practice. As such, this study systematically reviewed existing literature on the subject matter and synthesized the evidence through an applied political economy analysis lens. Concurrently, a meta-analysis was conducted to disentangle the potential determinants of heterogeneity in estimates of the impact of input subsidy programs across different countries. The findings showed that input subsidy programs contributed to boosting agricultural productivity in Sub-Saharan Africa in general. The average pooled effect size of input subsidies on crop value is US$128/ha (p<0.01). However, there exists a significant heterogeneity in the effect of input subsidy programs from one study to the other (Ι 2 = 100%). This underscored the role played by the prevailing political economy landscape and other subsidy-specific characteristics on the effectiveness of input subsidy programs in Sub-Saharan Africa. Input subsidy programs providing input packages with both fertilizer and improved seeds, as well as the use of a voucher system, enhance the effectiveness of input subsidies. The incidences of political patronage in subsidized input distribution, on the other hand, undermine the effectiveness of input subsidies. Contingent upon these findings, it is therefore proposed that input subsidy packages should include both fertilizer and improved seeds rather than fertilizer alone. There is also a need to deliberately incorporate legume crops, both from crop diversity and soil fertility points of view. The use of a voucher system is also encouraged to strengthen transparency and increase logistics efficiency and recipient targeting, while also permitting the timely delivery of subsidized inputs to farmers. To curb political patronage, it is suggested that farmer production return forms be used in input subsidy targeting to identify productive (but resource-constrained) farmers and, as a result, remove the involvement of public officials.
dc.identifier.urihttps://publication.aercafricalibrary.org/handle/123456789/4050
dc.publisherAERC
dc.titleAssessing the Impact of Input Subsidies on Agricultural Productivity in Sub-Saharan Africa: Applied Political Economy Analysis
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