Transcript 3ADI Presentation - HLCD-3A

High Level Conference on the Development of
Agribusiness and Agro-Industries in Africa
The African Agribusiness and
Agro-industries Development
Initiative (3ADI)
Executive Summary
• The 3ADI presentation is delivered in 3 Modules
First, is the introduction and context
Second, is the Program Framework: 4 main areas
Third, is the Program Approach: building on other
initiatives in Africa and means to build alliances .
• Main Messages:
1. We are not re-inventing the efforts in Africa but
rather build on them
2. Great opportunities exist in agro-industries for
serious interventions and building of capacity: HR
and Technology
Overture
•
•
•
•
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What makes 3ADI different
Developed by Africans
Proposed, written, and presented by
Africans.
It’s about financially and commercially viable
interventions
It’s about adding value
It links with the private sector, especially
small producers and processors
3ADI
Expectations
what we are aiming at
• A programme for the promotion of agribusiness and agro-industries
development endorsed by African Heads of State and Government
(HOS).
• Agreement to establishment financial modalities for agri-business
and agro-industry investment endorsed by HOS.
• Action plan for programme implementation and financial
mechanisms endorsed by HOS.
• Launching of the African Agribusiness and Agro-industries
Development Initiative (3ADI)
3ADI
•
How did we get here?
Global Agro-industries Forum (GAIF), New Delhi, India, April 2008
– Hosted by the Government of India
– Event jointly organized by FAO, UNIDO and IFAD
– Participation from 110 countries; 500 senior level delegates
•
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Representatives of 44 African countries recommended the organization of a
regional forum
– need to consider specific issues and priorities for agro-industries and
agribusiness development in Africa
Consultations with African leaders and organizations led to the decision to
hold this High Level Conference on the Development of Agribusiness and
Agro-industries in Africa – HLCD-3A
www.gaif08.org
3ADI
HLCD-3A Co-organizers
•
Government of the Federal Republic of Nigeria (Hosts)
•
African Union Commission (AUC)
•
African Development Bank (AfDB)
•
Food and Agriculture Organization of the United Nations (FAO)
•
International Fund for Agricultural Development (IFAD)
•
United Nations Economic Commission for Africa (UNECA)
•
United Nations Industrial Development Organization (UNIDO)
3ADI
Consultative Process
1.
Concept Note Developed by UNIDO and FAO
2.
Background document commissioned by UNIDO/FAO;
“Accelerating Agribusiness & Agro-industries Dev. in Africa”
3.
Expert Group Meeting on Development of Agribusiness &
Agro-industries in Africa: Constraints & Opportunities. 27-29
April 2009 – Vienna
4.
UNIDO/FAO/ Executive Secretariat meetings with the
Government of Nigeria on administrative & logistic matters.
4-7 May 2009, Abuja - Nigeria
5.
Writers workshop - 26-30 May 2009 – Rome
3ADI
Consultative process- II
6.
CAADP: private sector convening on CAADP
implementation, 17-18 June, 2009 - Dakar, Senegal
7.
UNECA Expert Group Meeting on Promoting Agro-industry &
Agribusiness Development in African Countries, 22-24 July
2009 - Addis Ababa
8.
Periodical Meetings of the Joint Organizing Committee;
Vienna, Rome, Abuja & Tunis
9.
Meeting on Financial mechanisms in Support of Agroindustries & Agribusiness Development in Africa; hosted
by AfDB in Tunis, Jan. 2010
10. 3ADI document - African Agribusiness & Agro-industries
Development Initiative: A Programme Framework
3ADI
Needed Investment (I)
1.
Capitalizes on renewed impetus for growth & development for
Africa through increased agricultural investment
2.
Recognizes the need for increased agro-based investments in
order to meet food security goals
Cumulative Investments over 2005/07 in billion US$
ITEM
Sub-Saharan Africa
1. Primary Production (including
496
mechanization & other power sources)
2. Downstream Support Services
(storage; markets & first stage processing)
444
TOTAL
940
Source: Capital Requirements for Agriculture in Developing Countries to 2050, FAO, Rome, 2009
US$ 15 billion/year in additional investment needed
3ADI
3.
4.
Needed Investment (II)
Recognizes urgent need to increasing profitability (i.e.,
strengthening effective demand for finance) of agribusiness &
agro-industries.
Focuses on ways to unlock local capital to meet agribusiness &
agro-industry investment needs, especially in short run until public
sector investments take hold.
The African Agribusiness and AgroIndustries Development Initiative
PROGRAMME FRAMEWORK
3ADI
GOAL & 2020 Targets
The goal of the 3ADI is to have an agriculture sector in
Africa which, by the year 2020, is made up of highly
productive & profitable agricultural value chains that:
1. effectively link SMS agricultural producers to markets;
2. contribute effectively to increasing farmers’ incomes through
value-addition processes;
3. supply higher-valued & differentiated food, fibre, feed and fuel
products to consumers at local, regional & global markets;
4. lead to retention of a higher proportion of the consumer price in
the communities or countries where the primary production takes
place;
5. utilize natural resources in an overall sustainable manner; and
6. act as an effective basis for industrialization & generation of
increased & high quality employment
3ADI
Main Objective
Main Objective
– To increase private sector investment flows going
into the agriculture sector in Africa by mobilizing
resources for agribusiness & agro-industrial
development from domestic, regional & international
financial systems
3ADI
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What the Initiative will do?
Specifically the Initiative will:
1. Leverage current attention to agriculture in Africa to
accelerate the development of agribusiness & agroindustries sectors that ensure value-addition to Africa’s
agricultural products;
2. Support a well coordinated effort to share knowledge &
harmonize programmes in ways that capture synergies,
avoid fragmented efforts, & enhance developmental
impacts;
3. Support an investment programme that will significantly
increase proportion of agricultural produce in Africa that is
transformed into differentiated high-value products.
3ADI
Expected Results
Four main results…:
1. Enabling policies & public goods;
(i)Sector Strategies & Plans; (ii) Legal and Regulatory Frameworks; (iii) Grades & Standards; (iv) Agricultural Mechanization;
(v) Markets & Trade Infrastructure; (vi) National & Regional Trade Policies
2. Value chain skills & technologies;
(i)
Producer, Commodity & Industry Associations; (ii) Value Chains Facilitation; ( iii) Producer & SME Skills Building; (iv)
Technology Development & Transfer; ( v) Vocational, Business & University Training
3. Post-production) Contract Farming & Outgrower institutions & services;
(i) Contract Farming & Out-grower Schemes; (ii) Business Incubators, Hubs & Clusters; (iii) Research, Technology & Agro-Food
Parks; (iv) Product Labelling & Certification Schemes; (v) Commodity Exchanges & Market Information
4. Reinforced financing & risk mitigation
mechanisms
(i) Public-Private Partnerships;( ii) Loan Guarantees;( iii) Investment Funds; (iv) Value Chain Finance; (v) Risk Mitigation Products;
3ADI
Feedback from Regional
Groups
1. Regional groups mostly in agreement with &
supportive of 3ADI.
–
Some issues raised are already covered but might need more emphasis (i.e.
demand driven approach, chain associations, business regulations, trade
barriers, etc.)
2. Issues raised to enhance the impact of 3ADI
i.
ii.
iii.
iv.
infrastructure (hard & soft), especially energy supply;
technology sharing;
capacity building at national & regional levels
R&D on selected issues
a) knowledge mgt & geographical information systems
b) waste & post-harvest losses management
c) processing equipment
v. land tenure / land use
vi. South- South cooperation
vii. Implementation modalities (national vs. regional strategies)
The African Agribusiness and AgroIndustries Development Initiative
PROGRAMME APPROACH
…the bulk of world food production is still concentrated in few regions…
Edaphoclimatic Conditions
Subsidies: US$ 350 billion/yr
...during the food crisis (food security) among the most affected
areas, Africa is included & the food import bill of the region have been
of US$254 billion in (2007), 33% higher than in 2006...
Large losses (Trade balance worsening by more than 1 percent of GDP)
Smaller losses (Trade balance worsening by less than 1 percent of GDP and more than 0.2 percent of GDP)
Small impacts (Trade balance changing between -0.2 percent and 0.2 percent of GDP )
Larger gains (Trade Balance improving by more than 0.2 percent of GDP)
No data
Source: IMF, 2008
…although the share of MVA of developing countries has increased in
the last 25 years it still responds to a limited amount of the world MVA…
Distribution of World MVA (%) (2005)
100
80
70
60
40
4
20
0
1980
26
1985
1990
Developing countries
Developed market economies
1995
2000
Transition economies
Source: UNIDO, 2006; MVA – Manufactured Value Added
2005
…and Africa, besides having the lowest share within developing countries’
MVA has even experienced a decreased from 06 to 03%…
Dist. of MVA by Developing Country Groups (%) 2005
100
12
W. Asia & Europe
China
80
60
5
S., E. & S-E.
Asia
47
31
41
Source: UNIDO, 2006
40
20
20
LAC
6
0
1980
Africa
1985
3
1990
1995
2000
2005
3ADI
Programme Approach (I)
1.
CAADP Pillar II as overarching Institutional Framework;
2.
Integrating into RECs;
3.
Priority focus on domestic & regional markets;
4.
Public support for engaging the private sector;
5.
Synergistic & complementary financial mechanisms;
6.
Preliminary ideas on innovative financial facility
3ADI
Programme Approach (II)
CAADP, particularly Pillar II, is the
overarching institutional framework
•
3ADI contributes to overall objectives of
CAADP while addressing primarily its Pillar II
– Improving rural infrastructure & trade-related
capacities for market access
3ADI
Programme Approach (III)
Integrated into African Regional
Organizations, Alliances & Initiatives
•
An African owned initiative
– it will work closely with African Regional Organizations &
Regional Economic Communities throughout all stages of its
design, inception & implementation;
– it should benefit from & be complementary to ongoing
initiatives;
– it will ensure stakeholder involvement through engagement
with existing entities that represent agribusiness and agroindustries in Africa
3ADI
Programme Approach (IV)
Priority to Domestic & Regional
Markets
1.
Domestic food staples in Africa, roughly a US$50
billion industry, will double by 2015;
2.
Growing potential of domestic agri-food markets in
Africa, fuelled by rapid urbanization rates & income
growth;
3.
Increased trade in domestic & cross-border markets
alone expected to reach US$30 billion by 2030;
4.
Focus is consistent with priorities identified & pursued
by African organizations and policy makers
3ADI
Programme Approach (V)
Public Support for Engaging the
Private Sector
1. Engagement & cooperation of actors from both
the public & private spheres of the African agrifood economy essential for success of 3ADI;
2. Public-private cooperation will be instrumental
to implementation (also essential in mgt &
oversight)
3ADI
Programme Approach (VI)
Synergistic and Complementary
Financial Mechanisms
•
Designed to complement & act in synergy with the existing financial
facilities, bridging the known gaps & unleashing newer financial
opportunities, primarily those that can be supported by the African
financial system itself
•
Unique features
– focus on downstream segments of value chains
– the strategic emphasis on leveraging financial resources from African banks
– wider geographical coverage, when compared to existing programs and financial
facilities that cover the agri-food sector in Africa.
•
African multilateral organizations & financial institutions will need to play
an active role in any governance structure to be established for the 3ADI &
its financial modalities
3ADI
Financial Mechanisms
of 3ADI
• Consultations in progress
1. Parallel meeting of financial professionals is currently being held in
another room to consider a concept and framework for financial
modalities in support of 3ADI;
2. Concept tabled for discussion envisages a financing mechanism with
two windows / channels that will deal respectively with public & private
sector type funding;
3. After the outcome of the financial modalities in support of the 3ADI
further consultations expected
3ADI
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The Way Forward
What we expect from your deliberations:
– Discuss & refine the programme framework;
– Advise on the development of the financing modalities;
– Provide guidance on moving forward;
– Commit to its implementation.
3ADI
THANK YOU!
For more information & follow-up, please check
WWW.HLCD-3A.ORG