The document discusses transformations occurring in the food economy in West Africa and implications for policymaking. Key points include: 1) Demand for food is changing as populations urbanize, incomes rise, and lifestyles become more convenient. Processed foods, fruits and vegetables, and meat and fish are in higher demand. 2) The food sector represents the largest private sector industry, making up 36% of regional GDP and growing faster than agriculture. 3) There are significant opportunities to better connect regional producers and consumers, improve infrastructure, and increase investment along food value chains beyond farm production. 4) Policies need to coordinate across sectors and levels of government to address challenges and opportunities in the transforming regional food system

1. Transformations in the food economy
and implications for policy making
THE SAHEL & WEST AFRICA WEEK
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat

2. Transformations of the food economy
and implications for policy making
Current situation and implications for the future
Philipp Heinrigs
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat

3. ClubSAHEL AND
WEST AFRICA
Secretariat
Urbanisation and cities

4. ClubSAHEL AND
WEST AFRICA
Secretariat
Urbanisation and cities

5. ClubSAHEL AND
WEST AFRICA
Secretariat
Urbanisation and cities

6. ClubSAHEL AND
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Secretariat
3 The regional opportunities
4 Outlook
2 Food: The largest private sector
1 Changing demand

7. 17 %
37 %
2 %
16 %
27 %
Fruits & Vegetables Meat & Fish Dairy Cereals Others
ClubSAHEL AND
WEST AFRICA
Secretariat Consumers’ diversifying consumption
17 %
26 %
4 %
22 %
31 %
Urban Rural

8. Processed foods
39 %
Unprocessed foods
30 %
Cereals
27 %
Beverages
4 %
ClubSAHEL AND
WEST AFRICA
Secretariat Demand for convenience
Urban
36%
Rural
41%

9. ClubSAHEL AND
WEST AFRICA
Secretariat
3 The regional opportunities
4 Outlook
1 Changing demand
2 Food: The largest private sector

10. ClubSAHEL AND
WEST AFRICA
Secretariat
Size of the food economy
100 %c
178
USD billion
(2010)
36% of
regional GDP
100 %32
USD billion
(2010)
GDP Ghana
The region’s largest private sector

11. ClubSAHEL AND
WEST AFRICA
Secretariat
Food imports = 7%…
Imports
7 %
Domestic production
93 %
178
USD billion
(2010)

12. ClubSAHEL AND
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Secretariat
Increasingly non agricultural
Non agricultural
40 %
Agriculture
60 %
178
USD billion
(2010)

13. ClubSAHEL AND
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Secretariat
4 Outlook
1 Changing demand
2 Food: The largest private sector
3 The regional opportunities

14. ClubSAHEL AND
WEST AFRICA
Secretariat
Huge regional opportunities
The food sector is 9x bigger than the export sector

15. ClubSAHEL AND
WEST AFRICA
Secretariat Concentrations and interdependences
Traded on
markets
126
USD billion
(2010)

16. ClubSAHEL AND
WEST AFRICA
Secretariat
1 Changing demand
2 Food: The largest private sector
3 The regional opportunities
4 Outlook

17. ClubSAHEL AND
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Secretariat
Demand for post-harvest activities to grow fastest
Forecasted demand growth in urban areas (income elasticities)
Source: Hollinger and Staatz (2015)

18. High food pricesClubSAHEL AND
WEST AFRICA
Secretariat
500
0
50
100
150
200
250
ICPFoodpricelevelindex
GDP per capita
2,000 8,000 32,000 128,000
World
Africa
Asia & Pacific
West Africa

19. Thank you for your attention
ClubSAHEL AND
WEST AFRICA
Secretariat

20. Transformations in the food economy
and implications for policy making
THE SAHEL & WEST AFRICA WEEK
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat

21. Thematic sessionClubSAHEL AND
WEST AFRICA
Secretariat
ALH. ALI MADUGU, mni
Managing director
Dala Foods Ltd, Kano
Vice-president
Manufacturers’
association of
Nigeria

22. Transformations in the food economy
and implications for policy making
THE SAHEL & WEST AFRICA WEEK
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat

23. Transformations of the food economy
and implications for policy making
Implications for policy design
Ousman Tall
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat

24. 33 %
28 %
39 %
Farm-level production Marketing & processing
ClubSAHEL AND
WEST AFRICA
Secretariat Increase level and mix of investment
Nigeria
35 %
6 %
59 %
Senegal
NAIP budget allocation

25. 33 %
28 %
39 %
Farm-level production Marketing & processing
ClubSAHEL AND
WEST AFRICA
Secretariat Increase level and mix of investment
Nigeria
35 %
6 %
59 %
Senegal
• Policy and budget allocation should change
to reflect changes in the food economy
• Stronger emphasis on post-harvest
segments of the food value chains
• Processing, packaging, logistics and
marketing will experience the fastest growth

26. ClubSAHEL AND
WEST AFRICA
Secretariat
Increase the level of investment
CAADP target of 10%
At farm level:
• boost long-term productivity: infrastructure,
technology development, farmer support
services
• target high demand growth products: fruit &
vegetables, meat & fish, dairy

27. ClubSAHEL AND
WEST AFRICA
Secretariat
Increase policy co-ordination
Move beyond the traditional confines of
agricultural ministries
• Multi-sectoral: Agriculture, Trade, Transport,
Energy, Industry, Health
• Longer value chains, MORE actors: Farmers,
traders, processors, consumers
• Level of government: ECOWAS/UEMOA, national,
local

28. ClubSAHEL AND
WEST AFRICA
Secretariat
Improve policy co-ordination
The food sector is 9x bigger than the export sector

29. ClubSAHEL AND
WEST AFRICA
Secretariat
Improve policy co-ordination
Match export crop value chains structuring
(cocoa, rubber, cotton)

30. ClubSAHEL AND
WEST AFRICA
Secretariat
Connect producers and consumers
67% of demand is concentrated in urban markets

31. ClubSAHEL AND
WEST AFRICA
Secretariat
Connect producers and consumers
Meeting demand is about connecting producers
and consumers
• Movement of goods and services
• Transport, storage and marketing infrastructure
• Input markets and support services in rural areas
• Grades and standards

32. ClubSAHEL AND
WEST AFRICA
Secretariat
Deepen regional integration
Greater regional integration is the key to scale-up
opportunities
• Connect regional producers to regional consumers
• Increase scale economies in production and policy
• Improve the region’s international competitiveness
• Develop regionally co-ordinated systems for grades
and standards, for agricultural research and
technology development

33. ClubSAHEL AND
WEST AFRICA
Secretariat
The transforming food system requires profoundly
different set of skills AT ALL LEVELS of the systems
Develop new skills and techniques

34. ClubSAHEL AND
WEST AFRICA
Secretariat
Develop new skills and techniques
The transforming food system requires profoundly
different set of skills AT ALL LEVELS of the systems
University of Ghana - BSc Food Science curriculum
Fundamentals of Food Science and Technology Human Nutrition
Structure and Function of Biomolecules Organic Chemistry
General Microbiology Analytical Chemistry
Unit Operations in Food Processing Nutritional Physiology
History of Nutrition and Concepts in Nutrition Cell Biology
Enzymology Food Chemistry Food Microbiology and Safety
Beverage and Sugar Processing Technology Nutrients and their Metabolism

35. Thank you for your attention
ClubSAHEL AND
WEST AFRICA
Secretariat

36. Transformations in the food economy
and implications for policy making
THE SAHEL & WEST AFRICA WEEK
Abuja, Nigeria, 15 December 2016
ClubSAHEL AND
WEST AFRICA
Secretariat