Transcript Agriculture - African Development Bank

AFRICAN DEVELOPMENT BANK GROUP
Agriculture Sector Strategy
2010 - 2014
(Major Highlights)
By
Dr. Chiji OJUKWU
Manager
Agriculture and Agro-Industry Department
AFRICAN DEVELOPMENT BANK GROUP
Context
n
Global Financial Crises
– At a time when Africa was building foundation for higher growth and poverty
reduction
n
2008 World Development Report (WB)
– Agriculture remains the main source of growth for the agriculture-based
countries and can reduce poverty and improve the environment
n
Global Food Crisis
– Africa’s recent gains in economic growth and macroeconomic and political
stability risk being jeopardized by the 2008 food price increase - Response
n
Climate Change
– Undesirable effect of climate change on agriculture sector
n
AfDB/IFAD Joint Evaluation
– Concludes AfDB should remain engaged in the Sector, but should be more
focused, selective and innovative
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Strategic Framework for the Bank AgSS
n
Millennium Development Goals
– Goal of eradicating poverty (by 2015) and hunger and ensuring
environmentally sustainability
n
NEPAD-CAADP:
– Framework for accelerating agricultural growth in the Africa: at least 6%
annual rate of growth
– Platform for collaboration, partnership and alliance building.
– CAADP compacts guides country policy and investment response allocation 10% of Budget to Agriculture
n
ADB Medium Term Strategy, 2008 – 2012
– Vision: To be recognized as preferred partner in Africa, providing highimpact, well-focused development assistance and solutions
– Priority Areas: Infrastructure, Governance, Private Sector, Higher Education
– Investment Support: Poverty Reduction, Agriculture, Regional Integration,
Human Development
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Bank Group Approvals, 1967-08 (% Distribution by Sector)
Industry, 5.5Other, 0.4
Multi-Sector, 15.2
Infrastructure, 38.9
Finance, 12.9
Social, 10.9
Agriculture , 16.1
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Bank Group Approvals, 2008: Distribution by Sector
Environment, 2.2%
Industry, Mining
+, 8.7%
ARD, 5.2%
Social, 7.1%
Multi-Sector, 23.0%
Infrastructure, 44.5%
Finance, 9.4%
nThe
2008 figures include private sector investments which is skewed against agriculture
5
Trend of Bank Group Agricultural Portfolio Performance, 2006 2009
nImproving
trends due to: more supervision, delegation of authority to
Field Offices, and better staff skill mix
59
60
55
50
50
%
44
39
37
40
35
31
30
25
20
13
6
10
6
0
2006
Satisfactory
2007
2008
Potentially Problematic Project
2009
Problemaic Project
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Lessons and Best Practices
 Strategic Financing of the Sector: ADB to remain engage in the
sector, but in a more focused, selective and innovative manner
 Adequate Policy & Political Framework necessary for agricultural
development: Bank to support increased capacity of RMCs for
analytical work in the area of policy development
 Purposeful Partnership based on comparative advantage adds
value to agricultural interventions in RMCs; to engage more with the
private sector
 Agricultural Water Development contributes to growth and
Poverty Reduction
 Capacity building sustainability of ARD initiatives needs Support
RMCs capacity needs assessment and institutional building
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Guiding Principles for Implementation of the AgSS
Country Ownership / Alignment
RESULTS FOCUSED
Stronger Partnership
Knowledge Generation and Dissemination
Gender Focus
Environmental Accountability
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AgSS – Bank Focus
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AgSS Pillars and Areas of Intervention – Pillars 1 & 2 of the four
CAADP Pillars
Pillar I: Agricultural Infrastructure
Pillar II: Renewable Natural
Resources
RURAL AND COMMUNITY ROADS
RENEWABLE NATURAL
RESOURCES MANAGEMENT
(including Forestry)
MARKET/STORAGE
INFRASTRUCTURE AND AGROPROCESSING
CLIMATE CHANGE
(Mitigation & Adaptation)
AGRICULTURE WATER AND
WATER STORAGE
OTHER INFRASTUCTURE
(Supporting Fisheries, Livestock,
etc)
nAgSS
Value Chain – Objectives, Purpose and Strategic Goal
Strategic
Objectives
Purpose of the
AgSS
AgSS
Strategic Goal
• To improve agricultural production and marketing
infrastructure , and ensure long-term and profitable
use of natural resources
• Agricultural Productivity and Income Enhanced
on a sustainable basis
• Contribute to sustainable food security and
Agriculture-led growth in Africa
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Cross-cutting
Pillar II
Pillar I
Indicative Pipeline of Projects / Programs for Financing, 2010 - 14
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CAADP/AgSS Pillars - ADB Interventions with OTHER PARTNERS
CAADP Pillars / Areas
General Areas
AfDB
Development Partners
Pillar I: Extending the
area under sustainable
land management and
Reliable Water Control
Systems
Land and Forestry
Management
Other infrastructure
(including Forestry,
fisheries, rural energy,
etc)
Agricultural Water and
Water Storage
OPEC Funds, IsDB, BOAD,
Kuwait Funds, Saudi Funds,
World Bank
Water Control System
Improved Water Quality
Management
On-Farm Management
Pillar II: Improving Rural
Infrastructure and Trade
related Capacities for
Market Access
Rural Infrastructure
Development
Market Access
OPEC Funds, IsDB, BOAD,
Kuwait Funds, Saudi Funds,
World Bank
WB, IFAD, IsDB
Renewable Natural
FAO, IFAD, UNCCD, IUCN,
Resources management EU, GEF Secretariat, World
/ Climate Change
Bank, OPEC Funds, IsDB,
BICEC, WMO, UNECA, AU,
ACMAD, ICPAC, CIDA,
SIDA, AGRA
Improvement of Rural
OPEC Funds, IsDB, BOAD,
and Community Roads
Kuwait Funds, Saudi Funds,
World Bank
Market / Storage
Infrastructure and AgroProcessing
IsDB OPEC Funds, IsDB,
BOAD, Kuwait Funds,
Saudi Funds, World Bank
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CAADP/ AgSS Pillars - Interventions by OTHER PARTNERS INDIRECT ADB ROLE
CAADP Pillars / Areas General Areas
AfDB
Development
Partners
Pillar III: Increasing
Food Supply and
Reducing Hunger
Agricultural Inputs
SI (AFFM)
IFAD, IsDB, WFP
Rural Financing/ Risk
management
Crop Development / Special
Food Production Initiative
Private Sector
WB , IFAD ,
IsDB
WB, IFAD,
IsDB, WFP
SI (NERICA)
Safety Net Programs
Pillar IV: Agriculture
Research, Technology
Dissemination and
Adoption
Others
WB, IFAD,WFP
Breeding and Multiplication and
Extension Services
Support
CGIAR
IFAD, FAO
Livestock/ Fisheries
Infrastructure
Only
Special
Initiative
IsDB
Special
Initiative
IFAD
Direct Role
WB, IFAD,
Information for Agricultural
Strategy Formulation and
Implementation
Capacity Strengthening for
Agriculture and Agri-business
Gender Mainstreaming/ HIV
IMF, WB
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Key Agricultural Sector Performance Indicators by 2014
1. 10,000 KM of rural
roads built and/or
rehabilitated
Outputs
Outcomes
4. 50,000 people trained in 1. Yield Increase: 15-20%
good agricultural practices
2. 500,000 Ha of land
under improved water
management**
5. Twenty five percent
decrease in agricultural
land and forests degraded
2. Reduction in post
harvest losses 3% over
six years (0.5% per year)
3. 8.5 billion Cubic
meters of water
mobilized for multiple
purpose development**
6. Seventy five percent of
Bank agricultural
operations are climate
proofed
3. Production increase: 5%
per annum
**Prepared and secured necessary investments by 2014 for operations to develop 500,000 ha under improved
water management and increase water storage capacity by at least 8.5 billion cubic meters.
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Risks and Mitigation Measures
Risk
Mitigation Measures
Difficulty of establishing modus operandi
with other partners
Advocacy of the AgSS to stakeholders
and ensure stronger link with DPs at an
early stage. Design more efficient
business processes.
Likelihood of slippages in government
implementation performance due to
inadequate capacity
Support Continental capacity building
program for Ministries of Agriculture
Inadequate enabling environment for
private sector participation
Support Rural infrastructure and policy
reform
Unwillingness of RMCs to make
investment in the sector due to
exogenous factors
Awareness that food security implies
increasing domestic production, and that
food availability is a function of sociopolitical stability. Apro Financing instr.
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Implementation Arrangements
 Action Plan for Implementation for period 2010 – 2014: accompanying
the AgSS
 Mid-Term Review of the AgSS: By 2012
 Program of Operations: Lending pipeline envisaged 75 projects / programs
for a total of UA 1.71 billion over the period, using Bank’s financial instruments
 Internal and Institutional Arrangements: Implementation of AgSS will
draw from the human and institutional capacities available in various
Departments of the Bank – with clear division of responsibilities, & properly
restructured approach for organizational effectiveness
 Financing Instruments: Those already in use by the Bank (public/ private
sector loans/grants, Budget Support, SWAPs, LoCs, Private Equity
 Results Monitoring and Evaluation – in line with Paris Declaration
principles and country/Bank result monitoring, measurement framework
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Partnerships
 Enhance Strategic Partnership with IFAD, FAO,
IsDB, OPEC Fund, WFP, BOAD, & WB and other
MDBs and bi-laterals.
 Cooperate with other IFIs through the CAADP
process at the country, regional, continental levels
 Engaging the Private Sector in the Agriculture Sector
Strategy
 Align to the Country System and Development
Programs
AFRICAN DEVELOPMENT BANK
Thank you
AFRICAN DEVELOPMENT BANK