Agriculture provides the backbone of the economy in many African countries. Moreover, the majority of the rural poor depend on agriculture either directly or indirectly for their livelihoods.1 Developing agriculture specifi cally and the rural sector more broadly are key components of Africas pathway out of poverty. Yet in the last decades of the 20th century, agriculture in Sub-Saharan Africa (SSA) suff ered from a tragedy of political inattention and disinvestment.

Agriculture is crucial for development in Africa, as the majority of the population lives in rural areas and at least 70 percent of the workforce is engaged in agriculture. In many African countries, growth in agriculture is the most effective strategy for reducing poverty and promoting overall economic growth (Diao et al. 2007). The period covered in this report was in many ways a positive year for African agriculture.

The member countries of the Common Market for Eastern and Southern Africa (COMESA) had agreed to launch a customs union by December 2008 under which a common external tariff (CET) would have been imposed on all goods and services imported from outside COMESA. Even though the creation of the COMESA customs union was not achieved, it could have been a decisive step towards bolstering economic growth and alleviating poverty in the region. Not withstanding the failure to create a COMESA customs union, the welfare impacts of customs union are ambiguous.

Public spending is one of the most effective instruments in promoting agricultural growth and reducing poverty in developing countries. Thus, monitoring public spending in agriculture is crucial. Agricultural growth also depends upon non-agriculture expenditures such as rural infrastructure, health and education. Since these investments may have differential productivity and poverty reduction effects, it is important to monitor spending in these sectors as well. This paper has two main objectives.

Poverty and vulnerability are among the major problems in Eastern and Southern Africa (ESA). To design appropriate poverty reduction initiatives for the region, it is not only important to understand the distribution of poverty but also the determinants. Various reports have documented information on the status, distribution and determinants of poverty in each of the countries.