challenges for africa in an age of global …...dar es salaam, tanzania. 1 march 2017. africa’s...

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CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL EMPLOYMENT DEINDUSTRIALIZATION: IMPLICATIONS FOR TANZANIA David Tschirley Presented at the 3 rd Annual Agricultural Policy Conference Dar es Salaam, Tanzania 1 March 2017

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Page 1: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL EMPLOYMENT DEINDUSTRIALIZATION:

IMPLICATIONS FOR TANZANIA

David TschirleyPresented at the 3rd Annual Agricultural Policy ConferenceDar es Salaam, Tanzania1 March 2017

Page 2: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Africa’s AgrifoodSystem

Transformation

Page 3: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Africa’s AgrifoodSystem

Transformation

Global Deindustrialization

Page 4: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Africa’s AgrifoodSystem

Transformation

Global Deindustrialization

African Employment?

Page 5: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Africa’s agrifood system transformation

Page 6: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Food is becoming more purchased …

Page 7: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Food is becoming more purchased …

More perishable…

Page 8: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Food is becoming more purchased …

More perishable…

More processed & prepared…

Page 9: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Food is becoming more purchased …

More perishable…

More processed & prepared…A Diet Transformation

Page 10: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

… which will (need to) drive other transformations …

… large farms … … and small farms

Science applied to…

Page 11: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Agribusiness orientationat large scale…

… and small scale

Page 12: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Reaching consumers throughmodern retail …

… and improved traditionalretail

Page 13: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

… all of which will be heavily influenced by public policy and investment

Private Investment

PublicPolicy

PublicInvestment

Page 14: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

IMPLICATIONS FOR …

NutritionEnergy and water use

EmploymentSkill needsPublic policy

Page 15: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Non-AFS Farming, ownand wage

labor

Foodmanufacturing

Marketing andtransport

Foodpreparationaway from

home

Shar

e of

all

jobs

Baseline scenario projection of jobs in East and Southern Africa, 2010 to 2040

2010 2040

Page 16: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Non-AFS Farming, ownand wage

labor

Foodmanufacturing

Marketing andtransport

Foodpreparationaway from

home

Shar

e of

all

jobs

Baseline scenario projection of jobs in East and Southern Africa, 2010 to 2040

2010 2040

Page 17: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Non-AFS Farming, ownand wage

labor

Foodmanufacturing

Marketing andtransport

Foodpreparationaway from

home

Shar

e of

all

jobs

Baseline scenario projection of jobs in East and Southern Africa, 2010 to 2040

2010 2040

Page 18: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

Food manufacturing Marketing and transport Food preparation awayfrom home

Shar

e of

all

jobs

Baseline scenario projection of jobs in East and Southern Africa, 2010 to 2040

2010 2040

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Non-AFS Farming, ownand wage

labor

Foodmanufacturing

Marketing andtransport

Foodpreparationaway from

home

Shar

e of

all

jobs

Baseline scenario projection of jobs in East and Southern Africa, 2010 to 2040

2010 2040

Page 19: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Africa’s AgrifoodSystem

Transformation

Global Deindustrialization

African Employment?

Page 20: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Global deindustrialization

Page 21: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

HOW HAVE COUNTRIES GOT RICH IN THE PAST?

Page 22: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

HOW HAVE COUNTRIES GOT RICH IN THE PAST?

#1: Moving to cities

Page 25: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT THIS DID

Facilitated rapid rises in labor productivity

Provided stable, secure employment

Facilitated delivery of social benefits

Page 26: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S HAPPENING TODAY?

Page 27: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S HAPPENING TODAY?

~ $12,000 pc, 22% share

Page 28: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S HAPPENING TODAY?

~ $4,000 pc, 18% share

~ $12,000 pc, 22% share

Page 29: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS?Factor of 1,000 every 15 years

Page 30: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS?Factor of 1,000 every 15 years

Constantly improving precision

Page 31: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS?Factor of 1,000 every 15 years

Constantly improving precision

Everything we do is now data

Page 32: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS?Factor of 1,000 every 15 years

Constantly improving precision

Everything we do is now data

Ever-smarter machines

Page 33: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS? And global trade spreads effects around the world

Ever-smarter machines

Page 34: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHAT’S DRIVING THIS? And global trade spreads effects around the world

Page 35: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

WHY DOES THIS MATTER?

African labor coming off farm now going largely into self-employed services

IssuesHow to raise labor productivity? The technology elevatorHow to enhance the stability and security of employment? Formal services might also do thisHow to deliver social benefits

Page 36: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

How to move ahead?

Page 37: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Global Market

Page 38: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Global Market

Tanzania

Page 39: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Global Market

Tanzania

Page 40: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 41: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 42: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 43: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

A large and rapidly growing local and regional market …

Global Market

Page 44: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

… with similar economies

Global Market

Page 45: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 46: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 47: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 48: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 49: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 50: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 51: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Page 52: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global Market

Tanzania and its neighbors need a radical commitment to regional trade

if they hope to industrialize

Page 53: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketTheir markets are too small otherwise

Page 54: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketTheir markets are too small otherwise

Competitiveness will be impossible

Page 55: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketTheir markets are too small otherwise

Competitiveness will be impossible

Consumers will be harmed

Page 56: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketTheir markets are too small otherwise

Competitiveness will be impossible

Consumers will be harmed

Growth will not be sustainable

Page 57: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketRoads & railOne-stop borders

Harmonized norms & standardsCommitment to trade rules &

processesOthers …

Page 58: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketThese steps can drive some level of industrialization, employment

generation, and income growth …

Page 59: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Tanzania

Global MarketThese steps can drive some level of industrialization, employment

generation, and income growth …

… in and out of the agrifood system

Page 60: CHALLENGES FOR AFRICA IN AN AGE OF GLOBAL …...Dar es Salaam, Tanzania. 1 March 2017. Africa’s Agrifood System Transformation. Africa’s Agrifood System Transformation. Global

Thank you!