The numerous roles played by the agricultural sector across the globe has made it imperative to enquire into the hardship encountered by the participants of the sector in sourcing for fund and procurement of inputs needed for further production across the Sub-Saharan African region. This study however investigated the influence of capital and exchange rate on agricultural output in Sub-Saharan African nations from 1998-2018 using panel system-GMM estimation technique. The study found capital inflow to be positively related to agricultural output in SSA nations while exchange rate revealed a negative relationship with agricultural output in SSA nations. Decomposing the capital into private and public capital suggest that private capital is positively related to agricultural output while public capital is negatively related to agricultural output in SSA nations. The interactive role of capital and exchange rate on agricultural output is highly keen to the success of the agricultural sector in the SSA nations, since they both contribute to the agricultural output. The authorities in the SSA nations should maintain an appreciating exchange rate and make policies that will attract additional investors in order to increase the availability of capital, agricultural output, decrease unemployment and poverty level in SSA region.
A Wed, study studied this question.