Investing in Africa's agricultural sector is the most effective way to tackle the economic recession that threatens the continent's progress toward attaining the UN Millennium Development Goals, according to a United Nations economic report released here on Thursday.

"Modernizing agriculture is crucial to development and industrialization in Africa, to food security, sustained poverty reduction and integration of Africa in the global economy," said this year's report, jointly published by the UN Economic Commission for Africa (ECA) and the African Union Commission (AU), which is entitled "Developing African Agriculture through Regional Value Chains."

The impact of the global financial crisis and economic recession has significantly lowered demand for Africa's exports, choking commodity prices and stifling growth. Many people will fall back into poverty as African countries will continue to experience a decline in capital flowing into Africa, including aid, foreign direct investment and remittances, said the report.

But agriculture holds a beacon of hope. The agricultural sector provides 25 to 35 percent of Africa's gross domestic product, 60 percent of Africa's employment and is the main source of income in rural areas, said the report.

Yet, speaking to reporters, Director of Development Policy and Analysis in the UN Department of Economic and Social Affairs Rob Vos said that economic development in the agricultural sector has been "neglected in recent decades."

Low investment in agriculture has created limited productivity, inadequate research, and unsustainable land expansion, Vos said, adding that climate change will continue to threaten food security.

The report recommends that Africa's agricultural sector is in need of a "rainbow revolution" -- investments in a variety of products such as rice, legumes, maize, cotton, palm oil, beef, dairy, poultry and fisheries products.

Markets built on diverse agro-ecological systems will foster biodiversity, which is important for product genetic health and soil enrichment, and will help Africa stay more competitive globally. Agricultural subsidies in Europe and the United States have seriously limited Africa's ability to stay competitive in the global market, said Vos.

"The agriculture sector is isolated from other sectors and is poorly linked to global markets," said Vos. "What Africa needs is a long-term focus (on agriculture) and a transformation that would further economic diversification."

In addition, to develop agricultural product value chains, Africa must enhance research and development, farm level production, marketing and trade, and soil and water conservation, said the report.