west & central africa fourth agricultural sciences week, niamey, 16-20 june 2014 )
Post on 23-Feb-2016
31 Views
Preview:
DESCRIPTION
TRANSCRIPT
AFRICAN DEVELOPMENT BANK GROUP
1
West & Central Africa Fourth Agricultural Sciences Week, Niamey, 16-20 June 2014)
Agriculture Transformation Through Commodities
Value Chains Development
Dougou KEITA, Manager, AfDB
AFRICAN DEVELOPMENT BANK GROUP
AGRICULTURE : A KEY AFRICA GROWTH ENGINEShared growth engineAbout 1/3 GDPECOWAS: 36% (2000-2009)1st employer
About 70% of africans majority of whom are women in agricultre sectorS=
budgetInvesting in AgricultureAgriculture Subsidy
External Accounts balanceHigh food importImpact of global food prices
Climat & environment Sustainable growth Environnemental protection Green growth
Croissance économique du continent
AGRICULTURE
ECOWAS
5,1%
2
AFRICAN DEVELOPMENT BANK GROUPopportunities Challenges
-2,000,000 4,000,000 6,000,000 8,000,000
10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
Num
ber
Number of people affected by Natural Disasters
Recurent food crisis due to drought Impacts of climat change; soil degradation; food price volatility; high demography; urbanization;
Existence of important regional markets (high demands due to high income, urbanization & high demography); large transboundary river bassins; Important irrigation potential; large yield increase potential; NEPAD / CAADP; ECOWAP
Regional markets
Natural disaster victims (nber)
River Basins Niger ABNSénégal OMVSLac Tchad CBLTBassin du Congo ...
3
AFRICAN DEVELOPMENT BANK GROUP Key sector constraints include:
Lack of access to production and productivity enhancing technologies
Limited capacity of sector institutions Poor production, processing and
marketing infrastructure Poor incentive system
4
AFRICAN DEVELOPMENT BANK GROUP
5
Increasing agricultural growth and productivity will require a wide range of actions to address the challenges set out above.
Priorities can be summarised in terms of “the four Is”:
AFRICAN DEVELOPMENT BANK GROUP
6
Adequate Incentive system;
Adequate production, processing and marketing Infrastructure;
supporting Innovations; and
Strengthening institutional capacity
AFRICAN DEVELOPMENT BANK GROUP
7
How to efficiently support agriculture sector development for
Wealth and employment creation Food and nutrition security ?
AFRICAN DEVELOPMENT BANK GROUP
8
LessonsPast interventions in agriculture addressed on-farm production constraints, without due consideration to value addition, marketing and other backward and forward linkages.
Such projects had limited success and were not effective in:
achieving their expected results ensuring sustainability Impacting gender protecting the environment
AFRICAN DEVELOPMENT BANK GROUP
9
Commodities Value Chain Development
gives equal attention to:production and productivityvalue addition through processing marketing.
is demand-driven, public sector enabled, and private sector led.
links small/medium scale producers with private operators.
AFRICAN DEVELOPMENT BANK GROUP
10
promotes contractual relationship between private operators and farmers’ groups, private operator providing services, such as:
credit for inputs training in good agricultural practices transportation guaranteed market for smallholders’
produces
AFRICAN DEVELOPMENT BANK GROUP
11
targets two major groups of beneficiaries:
economically active smallholders willing to participate in commercial agriculture;
existing or potential small-scale entrepreneurs and business associations who provide services to rural households.
AFRICAN DEVELOPMENT BANK GROUP
12
• Commodity Business Plan (CBP) constitutes the basis for investment decisions.
market potential financial viabilitywomen preferences
focuses on limited number of commodities, selected based on:
AFRICAN DEVELOPMENT BANK GROUP
13
Commodities for Ghana NRGP included: Industrial crops( soybean; cowpeas, groundnuts;
brewery sorghum); Women commodities (sheanut, sesame,
moringa, rice);Four animal products (small ruminants, pigs,
guinea fowl, and fish); Export fruits and vegetables (okra, chilly, French
beans, other vegetables, papaya, mango); Certified seed production.
AFRICAN DEVELOPMENT BANK GROUP
14
Incentives for Private Sector Engagement
0% duty on imports of agricultural machinery and equipment
Removal of restrictions on areas of investment and maximum equity ownership by foreign investors
No currency exchange controls – free transfer of capital, profits and dividends
AFRICAN DEVELOPMENT BANK GROUP
15
Constitutional guarantees against nationalization / expropriation
Pioneer tax holiday for agricultural investments Infrastructure, Innovations and Institutional
capacity support Alignment of stakeholders’ interests
Land tenure Competitiveness risks (unfair trade practices - raising tariffs to mitigate)
AFRICAN DEVELOPMENT BANK GROUP
16
Uganda – AAMP & CAIIP: Some Results
Increase yields by more than 50% from 2002 to 08 Increase households’ income by 15% (2002 to 08) 24% of subsistence farmers moved to commercial
farming from 2002 to 2008 Number of traders accessing markets increased by
72% on busy market days and 35% on non-busy market days
AFRICAN DEVELOPMENT BANK GROUP
17
Increased of commodities farm gate prices Irish potatoes: from UGX 12,000 to 25,000
per bag Pineapple: UGX 300 to 800 / fruit Milk: UGX 100 to 300 / l Bananas: UGX 500 to 3000 (bunch)
Post-harvest losses reduced by over 20%
AFRICAN DEVELOPMENT BANK GROUP
18
Conclusion
Interventions using the commodities value chain approach have a greater chance to transform agriculture.
They are more likely to: build the capacity of the agriculture sector
institutionsprovide incentives for the sector growth and
performance
AFRICAN DEVELOPMENT BANK GROUP
19
promote the use of innovations (science & technology)
develop production, processing, and marketing infrastructure
AFRICAN DEVELOPMENT BANK GROUP
20
Messages
Agriculture specialists would do well to promoting this approach. It is an efficient strategy to:
create shared wealth and employment contribute to food and nutrition
security,green & inclusive economic growth, on a sustainable basis
AFRICAN DEVELOPMENT BANK GROUP
21
Thank you
top related