Market access and agricultural productivity in Sub-Saharan Africa: Evidence from a dynamic panel approach

Agricultural productivity remains central to economic transformation, food security, and poverty reduction in Sub-Saharan Africa (SSA). While improving market access has emerged as a key strategy for agricultural development, empirical evidence of its productivity effects remains mixed. This study examines the nexus between market access and agricultural productivity across 42 SSA countries over 2012–2023, proxying market access through mobile phone subscriptions and trade openness. Using a System Generalized Method of Moments (System-GMM) framework, three key findings emerge. First, a 10% increase in trade openness marginally reduces agricultural productivity by approximately 1.02%, suggesting that market exposure without domestic value addition weakens performance. Second, a 10% increase in agricultural credit raises productivity by 1.11%, confirming financial deepening as a critical driver. Third, every 10% reduction in agricultural labour is associated with a 14.8% productivity gain, consistent with structural transformation dynamics. Mobile phone penetration is positive but statistically insignificant, indicating that basic connectivity may no longer automatically translate into productivity gains. Collectively, these findings demonstrate that market access is necessary but insufficient for agricultural transformation. Complementary policies including credit expansion, agro-processing investment, value-chain development, and productive digital services are critical for sustained productivity growth across SSA.