Transcript African Investments in Science, Technology and Agricultural

AFRICAN INVESTMENTS IN
SCIENCE, TECHNOLOGY AND
AGRICULTURAL
DEVELOPMENT
MELISSA BROWN,
WORLD BANK
AIARD Annual Conference, June 6, 2011
Presentation Outline
 CAADP
– A Framework for Country Led Initiatives and
Investments
 Overview
of World Bank Support to Investments in
Agriculture in Africa
 Investments
in Science, Technology and Agricultural
Development in Africa
CAADP - A FRAMEWORK FOR
COUNTRY LED INITIATIVES
AND INVESTMENTS
What is CAADP?
The Comprehensive Africa Agricultural Development Program

Not a program – a Framework

An African framework - NEPAD/AU vision and strategy for agriculture

CAADP calls for:

Renewed focus on the importance of agriculture

Need for improved strategies, plans, programs, and policies

More investment in agriculture

African Ownership
CAADP Targets and Principles

Targets: 6% growth in agriculture and allocation of 10% of government
budget to agriculture

Guiding Principles:

Country-led

Comprehensive - cross-sector/ cross-government

Multi-stakeholder engagement - CSOs, Private sector, Govt, Farmers

Evidence-based planning

Peer review, mutual accountability and M&E

Regional complementarity
Pillars and Frameworks

Pillar 1 – Land and Water Management

Pillar 2 – Markets and Infrastructure

Pillar 3 – Food Security

Pillar 4 – Agricultural Productivity
CAADP Encourages:
Countries to launch ….
….. “Planning Processes” …..
….. Informed by CAADP Principles and Tools …..
….. leading to …..
More Effective Scaled-Up Programs
Better Policies
Growth
Poverty Reduction
CAADP is :
a way to harness continental resources to support national
and regional planning and investments
(capacity building!)
WORLD BANK SUPPORT FOR
AFRICAN AGRICULTURE
Context - African Agriculture since
2009

Global food (and fertilizer) prices


Refocused SSA Governments


Commitments high (Aquila), delivery lags (GAFSP finance, other)?
Private sector interest and finance


has energized definition of country-owned programs, raised expectations for external
financing, investment plans of variable quality, process transactions-intensive
Donor flows


investing in agriculture, but politicized with over-reliance on subsidies, and weak
investment programs
CAADP platform


spikes in 2008 & 2010 threaten the poor, and social stability, offer potential gains to
farmers
positive FDI trends (but data are poor), and second-generation policy frameworks
(sector taxation->regulation, investment climate) still constrain
Outcomes

Fragile gains in SSA on sector GDP, land and labor productivity, and yield trends, but still
below targets and insufficiently widespread across countries
Progress: Sector Performance
1220
1200
Cereal Yields (kg/ha)
5 yr moving average
Real Agricultural GDP
(28 countries value weighted)
4.5
1180
4.0
1160
3.5
1140
1120
1100
3.0
# of countries > 5%/yr
2.5
1080
2.0
1060
1.5
1040
1.0
1020
0.5
1000
8
3
5
4
4
0.0
2000-04
Sources: ReSAKSS Comprehensive Monitoring and Evaluation Report, April 2010
2001-05
2002-06
2003-07
2004-2008
2009 Scale-Up Strategy

Goal



Higher SSA agriculture sectors’ growth and improved food security
Current Strategy Focus

Double lending over 2009-2010

Four pillars – land and water management, agricultural markets and
infrastructure, food security and vulnerability, agriculture technology

Horizontal beams – sector-wide policies, gender, climate change

Strengthen the CAADP process
How

Instrument innovation

Country-owned sector programs

Donor coordination

Regional programs
WB Scale-Up in Financing SSA
Agriculture (million USD)
FY08
TOTAL
FY09
464
1,684
FY10
FY11
847
FY12
1,450
797
Building pipeline from FY12 a priority with IDA16 increase.
IDA Commitment
434
1,494
754
1,273
783
Grant
30
190
93
177
14
GFRP Funding
10
501
85
20
-
WB Portfolio – SSA Agriculture
(US$ Millions)
Pillar
Africa
CA
EA
SA
WA
Total
Pillar 1
10.12
9.30
283.12
55.39
143.82
501.74
Pillar 2
10.70
58.55
80.29
94.50
356.94
600.98
6.50
401.96
27.77
50.14
486.36
Pillar 3
Pillar 4 Aggregate
76.95
48.62
365.81
90.32
328.82
910.52
Cross-cutting
41.81
11.74
95.69
12.80
30.56
192.60
139.59
156.90
1,478.81
333.75
1,259.42
3,368.46
TOTAL
LOOKING FORWARD: ALIGNMENT WITH
NEW AFRICA STRATEGY
Pillars and Foundation

Competitiveness and Employment, Vulnerability and Resilience, and Governance and Public
Sector Capacity provide a good framework for addressing the sector challenges
Partnerships
 With governments, private sector, development actors
 Scale and scope of the problem demands and use our catalytic power and expertise to
leverage other partners
 Learn from and build on existing partnerships (CAADP, AfdB, AUC, Bilateral, civil society,
etc)
 Mobilize partners to deepen and accelerate support to Africa Agriculture (crowding in
private and other public resources)
Knowledge
 Connector of knowledge in Agriculture and Agri –business development
 Strengthened impact of AAA
 South-South partnerships (e.g. Brazil)
 Political economy analysis of incentives facing actors in reform process
Finance
 Leverage WB , specially IDA resources, Development Partners, Private sector and PPP,
Domestic resource mobilization
Page 15
Looking Forward:
Strengthening the CAADP Pillars


Continued Strategic Focus
 Four main pillars: land and water management, agricultural markets and
infrastructure, food security and vulnerability, agriculture technology
 Horizontal beams – policies, gender, climate change
Main Adjustments
 Land and water operations implementation – updating the irrigation
business plan
 Agribusiness platform – for better leveraging of private investment and
increased participation
 Public expenditure policy engagement – cross-pillar program strengthening
through CAADP MDTF and BMGF trust fund for analytical work (9 countries
underway in 2011)
Pillar I Support in the Bank




Land
 Sustainable land management – rainfed land and pasture management; TerrAfrica
 Investing in land administration
 Titling, registration and cadastral capacity for small and large farm enterprises
 Innovating in community mapping and land taxation
 Engaging on policies for responsible FDI in land for agriculture, linked to land
administration capacity
Water
 Irrigation business plan – mid-term review just completed
 Scope exists for further scale-up, better if projects avoid small irrigation
components
Climate change impact on priorities
 Water management
 Soil carbon
Good practice projects
 Ghana Land Administration
 Zambia Irrigation Development and Support
 Ethiopia Irrigation and Drainage
Pillar II Support in the Bank





Diversification, value chain deepening
 extensive analytical foundations and piloting, now moving into
operational work
Private investment flows – mobilizing and harnessing; PPP
Program integration
 Agribusiness Platform (AR, FP, IFC, with infrastructure)
 Piloting integrated project designs – four pipeline projects (Ghana,
Burkina Faso, Senegal, Malawi)
 Increasing attention to safeguards: palm oil, GMOs, monoculture
pressure on biodiversity
Africa Union initiative
 Focusing on scale-up
 Still developing technical tools
Good practice projects
 Ethiopia Agricultural Growth Program
 Nigeria Commercial Agriculture
 Mali Agricultural Competitiveness and Diversification
Pillar III Support in the Bank





GFRP – resources mostly allocated; shifting to longer-term impacts on food production productivity
and marketing efficiency
Community-Driven Development Projects
 Food security for the very vulnerable
 Communities with declining resource bases
 Maritania, Chad, Niger, Madagascar (PSDR), Nigeria (FADAMA)
 Evolution: away from too-open menu for broad livelihoods, sharper focus on agriculture and
more access to better techniques
Disaster Dimension
 Early warning systems for drought (Kenya, Ethiopia, Malawi, Madagascar)
 Climate-related vulnerabilities and adaptive responses
Productive Safety Nets
 Opportunities for complementarity with HD, but better role focus (who does what) possible on
food security
Good practice projects
 Mauritania Community-Based Rural Development
 FADAMA Development Project III
 Madagascar Rural Development Support
Looking Forward: Emerging Issues

Private investment flows




Capturing climate change finance for agriculture


Main opportunity is soil carbon, following on the REDD path
M/E and statistics agenda


Tracking - household, domestic commercial, FDI
Facilitating – “crowding in” with public investment, and with business
environment
Link to employment generation
Investment in sector capacity within national statistical strategies; key
external partners are FAO and BMGF
Mechanization

High political profile but still seeking
workable strategies. Donor tractor aid
poorly used, and private leasing services
not taking off.
Looking Forward : Partnership and
Working with CAADP

Commitment to the framework

Prudence on the transactions costs, and managing expectations

Build on Country Compact progress

Strengthen the technical review process of national investment plans

Expand on public expenditure analysis for fact-based consensus-building

Emphasize the need to “crowd in” responsible private investment through
public goods and services provision

Expand investment at regional level

Monitoring and evaluation
CAADP PILLAR IV
The Productivity Challenge
Evidence Summit - Conclusions from Agricultural Technology Adoption and
Productivity Growth in Sub-Saharan Africa Presentation (D Byerlee):

Little evidence of a productivity take off

Significant adoption but often small and localized




Should not focus just on food staple technologies
 Cash crops, horticulture, livestock, fish
Not just yields but labor productivity
 Labor saving technologies?
Diversity of conditions and technologies
 No ‘silver bullet’ or transformative technologies
Focus should be on:
 Investing in generating more and better technologies and
 Enabling policies and institutions for adoption
Capacity Constraints within Science
and Technology systems
Africa’s technology generation and dissemination systems often
face:
 Weak human capital
 Poor facilities
 Low levels of overall investment
Leading to
 High levels of fragmentation /isolation among practitioners
 Financing spread over wide range of priorities
Africa’s 2008 Ag. R&D investment totaled $1.7 billion - equal
to Brazil - but spread over more than twice as many scientists
(ASTI)
CAADP Pillar IV Advocates:



Renewing the ability of ag. technology systems to efficiently and
effectively generate and adapt new knowledge
Technology delivery systems that rapidly bring in innovations to farmers
and agribusiness
Enhanced rate of adoption of technologies
Through:



Larger investments in agricultural research, extension and education
systems
Institutional reforms that increase efficiency and effectiveness of
research and extension spending
Harmonization of external support
FAAP – Implementation of Pillar IV




Framework for Africa Agricultural Productivity (FAAP)
- Guiding Document
FAAP is a guide but also an “agreement”
FAAP provides guiding principles on best practice to
improve performance of agriculture technology
systems
The adoption of FAAP has allowed a broad group of
development partners to start scaling up support and
presents an opportunity for harmonization of that
support
FAAP Principles






Empowerment of end-users
Planned subsidiarity
Pluralism in the delivery of agricultural research,
extension, and training services
Integration of agricultural research with extension
services, the private sector, training, capacity building,
and education programmes
Introduction of cost sharing with end users
Integration of gender considerations at all levels
FAAP Calls for:

Scaling up
investments
in national
and
regional
approaches
Pillar IV Support within the Bank


Research projects
o
Regional projects designed to achieve critical mass and facilitate spillover take-up of results
o
National system support – rebuilding, while forcing the link to dissemination and extension; no
free-standing agricultural research projects
o
Spill-in through South-South partnerships (EMBRAPA and innovation grants)
Extension
o
Designs are tailored to constraints e.g. demand (Uganda, Rwanda), supply (Ethiopia), effective
diffusion from research (WAAPP), and input/irrigation related (Nigeria Commercial Agric and
FADAMA; and WUA elsewhere)

Leveraging resources - large MDTF

Biosafety capacity
o
Regulatory underpinnings for new seed technologies;
national and regional capacity being built

Climate change - impacting research/extension priorities

Good practice projects
o
West/East Africa Agriculture Productivity Projects
o
West Africa Regional Biosafety Project
WB Commitments to Pillar 4
(US$ Millions)
Breakdown of Pillar 4
Column1
Pillar 4 research
274.52
Pillar 4 extension
625.41
Pillar 4 education
10.89
Pillar 4
Aggregate($millions)
910.52
Regional Agricultural Productivity
Programs: Core Approach




Shared efforts leading to greater efficiency –
increased specialization
Development of critical mass
Taking advantage of existing capacity - development
of existing sub-regional centers of excellence
Opportunities center on shared themes that have sub
regional importance identified by the participating
countries
Regional Agricultural Productivity
Programs: Close Linkages to SROs
CORAF
WAAPP
ASARECA
EAAPP
CCARDESA
SAAPP
New Initiatives in Agricultural
Education and Training



Working Group - RUFORUM, ANAFE, FARA, NPCA
IDA Regional Project on Tertiary Agricultural
Education
MDTF to support university partnerships – (USAID,
France, DANIDA, others?)
Looking Forward
Economic Development Perspective
 Need
to Scale-up Pillar 4 investments – long-term
payoff
 Need to do this through building African institutions
 Invest at both regional and country level
 CAADP provides foundation
Development Community considerations
 Need
to demonstrate document impact – short term
gains and MDG gains
 Need to demonstrate efficiency in use of funds
Thank you !