Grow Africa Investment Forum Cape Town South Africa 2013 Summary Report

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Grow Africa Investment Forum Cape Town South Africa 2013 Summary Report
Accelerating investments for sustainable growth in African agriculture in support of the Comprehensive Africa Agriculture development Programme
Andrew Williams Jr
aj@trn.tv
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South Africa Investment Forum June 19 2014 Implementing Vision 2030 Nelson Mandela’s Legacy, Agenda 2063, Climate Change and YOU
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Grow Africa Investment Forum Cape Town South Africa 2013 Summary Report

  1. 1. 1 Investment Forum 2013 Summary of Proceedings Summary Report Cape Town, South Africa, 8th – 9th May, 2013
  2. 2. 2 Overview 1 – 2 Country Highlights Burkina Faso 4 Ethiopia 5 Ghana 5 Malawi 5 – 6 Mozambique 6 Nigeria 7 Rwanda 7 – 8 Tanzania 8 Building Solutions Improving agricultural finance 10 Engaging smallholder farmers 10 – 11 Empowering women in agriculture 11 Enhancing environmental sustainability 11 – 12 Strengthening land rights and governance 12 Strengthening agricultural infrastructure 12 – 13 Improving regional trade and markets 13 Reducing post-harvest losses 13 Accelerating investments for sustainable growth in African agriculture in support of the Comprehensive Africa Agriculture Development Programme (CAADP).
  3. 3. 1 ¡¡ A partnership-based initiative, Grow Africa was conceived in 2011 to unlock and transform Africa’s agricultural potential by catalysing private sector investment. ¡¡ The second Grow Africa Investment Forum brought this concept to life and marked a notable step forward to the operationalization of this shared ambition. ¡¡ The launch of the Grow Africa inaugural annual report highlighted the achievements since the launch of Grow Africa, including the mobilization of over US$ 3.5 billion in new investment commitments, and engagement of over 800,000 smallholder farmers in eight African countries. ¡¡ Strong attendance with 300 leaders, comprising heads of state, ministers, private sector leaders, and farmer representatives, all actively participating in the discussions. “Nobody eats potential. You’ve got to unlock the potential.” This sentiment expressed by H.E. Akinwumi Ayodeji Adesina, Nigeria’s Minister of Agriculture and Rural Development, reflected the wider sentiment of this second Grow Africa Investment Forum. More than US$ 3.5 billion has been allocated in investment commitments under Grow Africa over the past year, and investors and governments spent the two days at the Grow Africa Investment Forum aligning around what needs to happen for these commitments to all be translated into sustainable investments on the ground, and more transformative action. Successes recognised, next steps identified Dr. Ibrahim Mayaki, Chief Executive Officer of the New Partnership for Africa’s Development (NEPAD) Agency, commended the progress made to date, and the commitment of partners from all stakeholder groups to bring the Grow Africa concept to life, saying: “The Grow Africa countries have made agricultural transformation a priority. It is extremely heartening to see companies respond concretely, and apply their knowledge, finance, and market access in a way that will drive these countries’ development.” Dr. Rajiv Shah, Administrator of the US Agency for International Development (USAID), also praised the early results generated through Grow Africa, and announced the award of a US$ 9.5mn grant to Grow Africa to sustain momentum as it engages with the operational phase of project implementation. Speaking at the Investment Forum, he described Grow Africa as “an action-driven initiative that is successfully demonstrating how the private sector can help to drive a partnership-based approach to developing Africa’s agricultural potential”. In keeping with the action-focused approach, each country attending the Investment Forum identified one clear action that it was going to take to address key constraints that can unlock their agricultural and investment potential. Countries also identified ways to learn from each other, and compare experiences. For example, the Government of Burkina Faso is considering a study mission to learn about the Mozambican approach to agricultural financing, and the role of a catalytic fund in this. Ambitions growing as partners call for more Joergen Ole Haslestad, Chief Executive Officer of Yara International, told the closing plenary: “What we have achieved is fantastic. I am impatient and want to see more”. Dr Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission, echoed this, calling for activities and commitments under Grow Africa to be scaled up. Government, private sector, and farmer participants at the Investment Forum all reflected this sentiment in the discussions of the two days, and committed to seeing through the actions that need to be taken to achieve the investment of the committed funds – and more to be generated – on the ground. Overview Strong progress to date brings new commitments & push for more action
  4. 4. 2 Josette Sheeran, Vice-Chair of the World Economic Forum; Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission and Goodluck Jonathan, President of Nigeria during the Closing Plenary DOWNLOAD YOUR COPY OF GROW AFRICA’S FIRST ANNUAL REPORT Grow Africa’s first annual report was launched at the Investment Forum. It comprehensively catalogues 2012’s commitments and progress by companies, governments and other partners across each of the 8 countries. The report captures how, together, they are learning how to generate transformative investment in to the sector, and demonstrating unprecedented transparency and collaboration. To learn more, download your copy at www.growafrica.com The commitment of Grow Africa to action over words was also evident in the discussions among the participants, which were consistently solution-focused, centring on implementable actions, and specific investment opportunities. Attendance had grown from last year, with 300 leaders, comprising heads of state, ministers, private sector leaders, and farmer representatives, all actively participating in the discussions. Addressing the opening plenary, H.E. Rhoda Peace Tumusiime, Commissioner for Rural Economy and Agriculture at the African Union Commission, reminded participants that Grow Africa is integral and closely linked to the Comprehensive Africa Agricultural Development Programme (CAADP) process, as well as a driving force in achieving the African Union’s goals relating to food security and agriculture. However, while noting the successes, Commissioner Rhoda Peace also reminded the Investment Forum that much more remains to be done, with investors and all other partners delivering on their commitments once this year’s Investment Forum has passed. The Grow Africa Investment Forum 2013 conversations demonstrated significant progress has been made to date. The coming year will require the conversations to be fully translated into on-the-ground impact, with partners continuing to align and engage each other, in order to continue to push forward the shared Grow Africa vision of a partnership-based transformation of Africa’s agriculture through investment that benefits all stakeholders, including the custodians of Africa’s agriculture – smallholder farmers.
  5. 5. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula dolor. Lorem ipsum 0 Country Highlights “The Grow Africa countries have made agricultural transformation a priority. It is extremely heartening to see companies respond concretely, and apply their knowledge, finance, and market access in a way that will drive these countries’ development.” Ibrahim Mayaki, CEO, NEPAD Agency and Co-Chair for the Grow Africa Partnership
  6. 6. 4 Burkina Faso Highlighting benefits of PPPs through Bagré Growth Pole Burkina Faso has realized significant reforms towards enhancing its enabling environment for greater private sector engagement in alignment with the needs of smallholder farmers. Now is the time to translate these investment intentions from the private sector into concrete actions and results on the ground. The Bagré Growth Pole was highlighted as an example of a project that offers greater competitiveness for investors and economic diversification within Burkina Faso. The Bagré Growth Pole is attractive to investors for its commercial incentives. Burkina Faso is considering the possibility of holding a Presidential Roundtable for agriculture investors on the sidelines of an already planned investors’ conference with the intention of improving dialogue with investors and facilitating private-public partnerships. Focusing on the Bagré Growth Pole, participants at the Burkina Faso country session highlighted key achievements that will lead to greater agricultural investment in the country. The first key highlight was the structuring of the Bagré Growth Pole project as a public-private partnership. Burkina Faso made a call for expressions of interest for the allocation of 12,712 ha of developed land within the Growth Pole. Company representatives at the event pointed out the benefit of private sector autonomy when it is coupled with public sector alignment as well as the importance of having a critical mass of represented smallholder farmers. Other areas of interest for private sector investors included rice production and processing mills, as well as the overarching production and transformation opportunities in the Bagré Growth Corridor. The Grow Africa countries engaged in interactive discussions with investors and stakeholders to discuss progress to date, future opportunities, and the enabling environment for agricultural investment in their country. The highlights of these discussions are captured here. Khalid Bomba, CEO, Ethiopian Agricultural Transformation Agency and Kanayo Nwanze, President, IFAD
  7. 7. 5 Ethiopia Transforming agriculture through smallholder farmers Two years ago, the Agricultural Transformation Agency (ATA) was set up within the Government of Ethiopia to increase productivity and improve the lives and incomes of smallholder farmers. To this end, the ATA is playing a crucial role to engage with private sector partners to tackle specific pre-competitive challenges. The ATA has utilized the Grow Africa Investment Forum platform to attract investment for priority initiatives, and offers continued proactive support to businesses considering or undertaking investments. Khalid Bomba, the ATA’s Chief Executive Officer, said that the organisation’s major priorities are to engage the private sector more proactively, change internal systems to deliver standardised results, and to play a problem-solving role by supporting the process of public-private partnership formation and collaboration. Participants at the Investment Forum who have worked with the ATA described it as a “nimble and adaptable” organisation, proactive in engaging the private sector and at coordinating between public sector agencies, as well as building their capacity. Given the rapid growth within the sector, and an increasingly supportive enabling environment, there are significant opportunities for investment in Ethiopia’s agriculture sector. The ATA outlined four particular areas of opportunity for investment this year: commercial farming, horticulture (with a focus on fruits and vegetables), mechanization and agro- processing. Participants discussed opportunities for investment in maize, agricultural service provision and irrigation technologies. The group also identified priority initiatives such as professionalising cooperatives and treating farmers as entrepreneurs, who make a growing and measurable contribution to GDP. As a next step, the ATA invited investors to engage with them in bilateral conversations to discuss specific investment opportunities and to problem solve on concrete issues. Ghana Business-friendly environment, significant growth opportunities At the Ghana breakout session, the Government of Ghana expressed its commitment to improving its agriculture sector through innovative strategies. There are ample opportunities for growth in Ghana’s agriculture sector, due to its mineral wealth and large amount of arable land. Ghana’s business environment is one of the friendliest in Africa, and is one of the most politically stable countries in sub-Saharan Africa. Ghana’s economy has projected growth of 6.9% for the coming year, and the government is actively encouraging public-private partnerships in agriculture. One representative of a multinational company praised the openness of Ghana to investment by saying that “In Ghana, it is open skies and open to business”. In recent years, Ghana has reduced its rice import by 50%, and there are more opportunities to stimulate local production for other produce such as aromatic rice. Maize remains the most widely used staple crop, and current market demand is over 1.8 million metric tons. Participants noted a clear need for support in seed production and processing capabilities, which are currently limited. They also emphasised the need to adopt innovative methodologies and technologies to prevent post-harvest waste through improved storage and refrigeration facilities, as well as advanced irrigation technologies to improve productivity. “In Ghana, it is open skies and open to business” Representative of a multinational company praised the openness of Ghana to investment Malawi New leadership pushing drive to improve investment climate Malawi is endowed with abundant water resources (21% of Malawi’s total area is water) and at least five different climatic zones, bringing with it the potential to support cultivation of a wide range of crops. Under the dynamic leadership of H.E. Joyce Hilda Banda, President of Malawi, the Government of Malawi is spearheading a drive to ensure food security and reduce poverty by embracing the role of the private sector in agriculture, unlocking at least 200,000ha of its uncultivated arable land
  8. 8. 6 Mozambique A corridor-focused approach to developing agriculture Mozambique is a stable country, with high economic growth and substantial agricultural potential. The country is prioritising private sector investment into agriculture as a driver of poverty reduction and improved food security. Mozambique has continued to offer a strong and increasingly attractive investment climate with viable opportunities across numerous value chains. An investment facilitation effort is underway by CEPAGRI (Centro de Promoção da Agricultura), and is expected to progress investment commitments expressed in Letters of Intent. Mozambique has an advantageous geographic positioning, providing an ideal gateway to both international and regional markets. Infrastructure projects under development will serve to harness these international and regional opportunities by improving capacity for linking agriculture products to markets. At Mozambique’s country breakout session, several companies expressed an interest to collaborate around pulses, especially as it relates to trade with India. Similarly, companies discussed the need to meet local demand for soy, both as part of the poultry industry as well as to increase local consumption for nutritional impact. The government’s commitment was demonstrated through the country’s detailed ten-year strategic plan for agriculture development, PEDSA 2011 – 2020. Six corridors have been targeted to achieve this goal, including Nacala, Zambezi Valley, Beira, Pemba Lichinga, Limpopo and Maputo, in order to align efforts across the public, private and development sectors. by 2015 for private and commercial agriculture. With strong support from President Banda, Malawi is also seeking to diversify its commercial agricultural activities. Speaking at the event, President Banda told investors: “Malawi is ready. We have created an enabling environment for investors”. Several multinational companies at the Malawi breakout session agreed that a partnership facilitation mechanism, led by government, is crucial to attracting investments that meet all stakeholders’ needs – particularly for investors and farmers - by sharing risk and ensuring mutual understanding. Participants emphasised the need for partnerships to include smallholder representation to ensure that they are not marginalised and are able to benefit commercially from investments in Malawi’s agricultural sector. Malawi already has a comparative advantage compared to many other countries thanks to its strong smallholder representative association, the National Smallholder Farmers Association of Malawi (NASFAM), allowing for effective engagement of smallholders. Yayi Boni, President of Benin and Joyce Banda, President of Malawi, during the closing session.
  9. 9. 7 Rwanda Nigeria Drive to become regional agricultural hub for high-quality produce Dynamic reforms and large domestic market already attracting investors The Government of Rwanda’s role in national agriculture has evolved, as it focuses on becoming an enabler, rather than the prime mover of investments in the sectors. Rwanda has enacted a collection of sector reforms, which aim to transform the dynamics in the sector and ease the involvement of smallholder farmers in the formal supply chain. Agriculture contributes almost 45% to GNP, and nearly 90% of the working age population depends on income from the sector. Nigeria has strong macro-economic fundamentals that enable and incentivise investment. It is the fourth fastest growing economy in the world, with a stable foreign exchange, low inflation, a sovereign wealth fund, and improving policy environment. Similarly, the country boasts 84m ha of potential arable land, ample water sources, a growing labour market, and a major consumer market. Speaking at the Investment Forum, Nigeria’s Minister of Agriculture and Food Security, Akinwumi Ayodeji Adesina, told participants: “We have a lot of poor people in Africa, but we are not a poor continent. This is the place for investors to look”. Through the dynamic leadership of H.E. Goodluck Jonathan, President of Nigeria, Nigeria has made unlocking its agricultural potential a priority. As a non-oil sector, agriculture has the biggest share of exports and is booming as a result of strong production of cocoa, sesame and ginger. Nigeria assured participants at the Investment Forum that the government is committed to acting as an enabler, not a producer, thereby unlocking private sector investment. Participants heard that Nigerian priorities are now interventions to increase food production and to create jobs through technology uptake, processing, import substitution, and strengthening value chains. Nigeria’s Agricultural Transformation Agenda was established to facilitate achievement of these targets, and improvements in the sector are rapidly generating billions of dollars in private sector investments. Company representatives at the event demonstrated interest in seed production, cocoa, and livestock. The conversations featured specific expressions of interest with regards to the development of cocoa farmers’ skills, improvement of facilities to process cocoa domestically, and on the establishment of a cocoa investment fund. Similarly, there was interest expressed in the livestock industries, to improve the structure of the beef value chain, and working with investors to develop the halal certified beef value chain. “We have a lot of poor people in Africa, but we are not a poor continent. This is the place for investors to look”. Akinwumi Ayodeji Adesina Nigeria’s Minister of Agriculture and Food Security Agnes Kalibata, Minister of Agriculture and Animal Resources of Rwanda
  10. 10. 8 Tanzania Land demarcation underway, investor commitments growing Tanzania aims to achieve domestic and regional food security by continuing to be amongst the pioneers of agricultural transformation in Africa. Agriculture plays a critical role in Tanzania’s economy, employing about 75% of the total labour force, and contributing 26.5% to GDP. The sector comprises both food crops and livestock sub-sectors. Tanzania is demonstrating progress through developing agricultural zones and demarcating areas for investment in specific commodities. More private sector involvement is required in outputs and logistics to link the production and distribution ends of value chains. The Government of Tanzania is seeking to accelerate formalising smallholder land tenure in partnership with others, and establishing multi-stakeholder platforms to ensure accountability in the delivery of policy reforms. Tanzania is committed to increasing investments in agriculture, and in collaboration with the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a series of initiatives are underway aimed at creating a better enabling environment for all stakeholders across the value chain. At the country breakout session, the Government of Tanzania stated that it is prioritizing opportunities in livestock, rice and sugarcane production. Private sector participants expressed interest in investing in Tanzania’s agriculture sector and would like more clarity around options for accessing land. Similarly, investors demonstrated an interest in enhancing sustainability across value chains and increasing capacity-building initiatives through training and financing. At the Investment Forum, representatives of the Government of Rwanda expressed the country’s intention to develop its strengths in principally labour-intensive crops and positioning Rwanda as a regional hub in East Africa and for the Democratic Republic of Congo for high value and high quality agricultural products. Rwanda is rapidly developing an all-weather road network to connect rural villages to the rest of the country. Similarly, the government is promoting the use of technology to connect farmers and provide them with data on weather forecasts, prices and storage facilities through the use of cellular phones. Private sector participants highlighted the importance of intellectual property rights (IPR), given the government’s aim to become a seed production hub. Rwanda will need to be competitive and benchmark its laws against other strong international examples of IPR legislation. The right infrastructure will also need to be in place if Rwanda is to become a regional trading hub, and private sector participants recognised the work that Rwanda has already done in this area. Finally, the private sector participants expressed a need to better understand the capabilities of the smallholder farmer associations if they are to be engaged effectively, and requested the support of the government in achieving this understanding. Adam Malima, Deputy Minister of Agriculture, Food Security and Cooperatives of Tanzania
  11. 11. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula dolor. Lorem ipsum 0 Building Solutions “The next emerging market in the world is women.” Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission
  12. 12. 10 IMPROVING AGRICULTURAL FINANCE As in so many other discussions at the Grow Africa Investment Forum this year, participants in this solution- building session stressed that farming must be redefined as a business and a profit-making industry before agricultural financing mechanisms can properly be established in the sector. Participants discussed the “investment paradox”, whereby food and agricultural products are in high demand, the potential for thriving agribusiness is great, and billions of dollars are currently “un-invested and un-lent”, yet supply of agri-capital fails to meet the needs or demands. Conversations here focused on the need for key stakeholders to persistently work towards gaining a clear picture of the real risks for agri-investments to replace the perceived risks on which decisions are currently being based. To unlock value chain investments, we need more capital targeting the missing middle. Development partners and host governments have oriented solutions towards smallholders, and institutional players’ target deal sizes are too large for the emerging sector to put to work. If DFIs do not increase their risk appetite, their activity may compete with and displace commercial bank activity, which in turn will prevent commercial banks from meeting the needs of the agriculture sector. One way to address the agricultural finance challenge discussed in this session was sourcing of long-term contracts that reduce risks at production level and lead to scale. Different institutional arrangements were also discussed to reduce transaction costs, including new models for development partners to co-invest in creative ways, and embracing technology solutions to achieve scale. Other elements of a solution include the availability of long-term risk capital, and increased support for building financial understanding and business skills among farmers and their representatives. Overall, participants agreed that creativity, patience and risk mitigation tools are needed to develop successful new models for agricultural finance. ENGAGING SMALLHOLDER FARMERS 60% of the global agricultural supply comes from smallholder farmers. This means that smallholders must be fully integrated into any initiative that aims to increase productivity and market access. Participants in this solution-building session agreed that for integration to be successful, smallholders – as all other farmers – must be treated as entrepreneurs. Companies are beginning to respond to these needs, with global food processors and retailers understanding that local sourcing is becoming competitive. A representative of a large multinational noted that “business models that look at the smallholder farmers as business partners are more successful than those that consider the farmers as contractors”. In order to maintain the successful momentum towards engaging smallholders, scalable organisations need to be created to integrate and train farmers, and to encourage The 2013 Grow Africa Investment Forum hosted interactive breakout sessions focused on building solutions to the vital enabling factors for sustainable agricultural growth in the Grow Africa countries. The sessions were attended by a combination of country leaders, private sector representatives, farmer representatives, and other stakeholders, with the goal of identifying tangible solutions from participants’ wide range of experience that can be replicated and scaled across the Grow Africa countries. Strive Masiyiwa, Group Executive Chairman, Econet Wireless, and Co-Chair of the Grow Africa Partnership
  13. 13. 11 them to enter regular channels of communication that will allow them to respond to market demands quickly and efficiently. Discussants noted that out-grower schemes are an effective way to integrate smallholders into formal value chains. Such schemes can be brought to scale quickly and can provide efficient access to finance. Cooperatives also play an important role in enabling access to finance, and their role can be strengthened by focusing on productivity improvements and aggregating production from farmers. Similarly, cooperatives must be tailored to the needs of each value chain, local demographics, and the local environment to ensure success. Providing smallholder farmers with effective access to finance can be game-changing, and partnerships can play a particularly important role in enabling access to this. Innovative, risk-sharing partnerships can also play a fundamental role in increasing productivity by providing access to inputs and training mechanisms. Private sector partners in particular stressed that successful partnerships depend on genuine alignment of all parties, which requires clarity and precision in agreements among farmer organisations, companies and governments. Farmer organisations are the most efficient channel for engagement between smallholder farmers and private sector companies and can do more to provide smallholder farmers with knowledge and information-sharing platforms. National governments can also help by creating clear and consistent policies for smallholder engagement. EMPOWERING WOMEN IN AGRICULTURE The solution-building session on women’s empowerment focused on fundamental, long-term needs to change cultural norms and attitudes regarding women’s partici- pation in agriculture, and in society more broadly. These improvements included access to quality education and capacity-building, especially for girls; a behavioural shift in how society views the role of women in agriculture; collective bargaining approaches; women’s and girls’ access to food and nutrition within the household; and a more deliberate focus on resilience and sustainable development in the context of a changing climate. Participants also discussed the dearth of women within agricultural research institutions, and the insufficient effort to date to capture gender disaggregated data and use it to shape policy and business models. Another key challenge discussed at the event is women’s limited access to and control over agricultural resources such as land and financial credit. Three approaches to empowering women in agriculture emerged from the discussion: 1. Supporting and encouraging producer households to include women alongside men in capacity- building initiatives, which can empower women with training and skills development, enable collaborative decision-making, and to encourage equal control over income. 2. Drawing lessons and experiences for women’s empowerment initiatives from CAADP’s Empowering Women in Agriculture (EWA) program. 3. Enabling women’s advancement through relevant agricultural technologies, such as low-cost pumps to facilitate irrigation. Discussants concluded that businesses and organizations must be ambitious and tangible about initiatives to empower women in agriculture, setting out specific targets and commitments. Empowering women is not just the right thing to do, it also makes business sense; and people must continue to speak truth to power to ensure women are able to more fully contribute to, and benefit from, the agricultural sector. ENHANCING ENVIRONMENTAL SUSTAINABILITY Protecting African agriculture from the impacts of climate change, while simultaneously committing to environmental sustainability, was the focus of discussion in this solution-building session. The overall sentiment from participants was that sustainability rests on the principle that we must meet the needs of the present without compromising the needs of future generations. Unsustainable farming degrades the natural resource base and contributes more to climate change, thus decreasing the ability of future generations to produce and flourish. Having identified the fundamental issues, discussion turned towards viable approaches and tools that will enable environmentally sustainable growth in African agriculture. On-farm education in sustainability ethics and practices was highlighted as a priority. Costa Rica’s commitment to environmental sustainability was used as a benchmarking example, with its commitment “Schools need to go to farmers, instead of farmers going to schools”. Dr. Calestous Juma of Harvard University
  14. 14. 12 reflected in its Earth University, an institute dedicated to training a new generation of farmers on sustainability ethics as agents of change. Its curriculum focuses on entrepreneurial competence rather than certificates, with students given a practical working experience with farmers. Ghana and Uganda are experimenting with this model too, while Africa Atlantic and Harvard University are teaming up to look for African countries to replicate this model. Speaking in the session, Dr. Calestous Juma of Harvard University told participants: “Schools need to go to farmers, instead of farmers going to schools”. Another solution is the development of integrated data to support the public and private sectors in driving the sustainability agenda. The lack of data on the relationship between agricultural outputs and the social, political and agro-economical systems that influence long-term sustainability creates risks for governments, investors and farmers. The Vital Signs monitoring system quantifies sustainability and provides analytical tools to evaluate risks and trade-offs. The system is initially launching in five African countries, with plans for expansion to other parts of Africa and beyond. STRENGTHENING LAND RIGHTS AND GOVERNANCE When discussing the issue of land, various political and cultural sensitivities need to be taken into consideration. The Grow Africa Investment Forum conversations on land centred on the belief that land rights can be managed in a way that is both pro-poor and pro-growth, thus protect- ing the poor and mitigating the risk to investors. Dialogue focused on how clarity of land tenure is a crucial consid- eration for investors, farmers, and multinationals alike, given that agricultural investment inherently requires long-term land access. An example from Mozambique was shared at the session, which showed that when a hub farm and surrounding smallholder farmers all had clear land tenure, they were able to confidently invest to increase production. Whether it is the smallholders dig- ging bore holes, or the hub farm building a warehouse, secure land tenure is a requirement for investment. Participants agreed that now is a pivotal moment for stakeholders to effectively take on and address land issues in Africa. Priority issues relating to land included time-consuming and costly consultations, understanding customary land rights and opaque formal tenure systems, lack of effective dispute resolution systems, and abandoned land. Formal recommendations to address these issues at an international level are emerging primarily through the “Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security”. Furthermore, the “Principles for Responsible Agricultural Investment” are being developed and prioritise land issues. The two overarching solutions to be taken away from the discussion were legislation and transparency. Land legislation is ideally developed through a consultative process to build multi-stakeholder buy-in, protection of rights of the illiterate, and an understanding of the effect of other policy issues that may affect land, such as infrastructure and transport. Transparency is fundamental to overcoming land issues. Participants discussed the need for transparency tools to harness new technology for public consultation, open contracts, public geo- mapping, and satellite monitoring of land use. Once legislation and transparency are ensured, consistent application of all tenure systems will give both small and large investors the confidence needed to invest in African agriculture. STRENGTHENING AGRICULTURAL INFRASTRUCTURE The viability of agricultural investments is heavily dependent on the adequacy of hard and soft infrastructure, including transport, power, water, and storage facilities. Currently, such infrastructure is generally inadequate across Africa, compromising competitiveness in various ways, and leading to some 30% post-harvest losses of all agricultural produce. This solution-building session identified four key issues. The first issue is financing. Participants discussed how financing for agricultural infrastructure needs major expansion, with an estimated shortfall of $90 billion across Sub-Saharan Africa. Farming is a fragmented and high-risk industry, which makes it hard to target infrastructure investments, which tend to require large- scale, long-term capital. Participants recommended using farmer aggregation systems such as cooperatives to mitigate risks and enable shared use of infrastructure. Secondly, participants identified the importance of infrastructure in providing the backbone for value-chain development. Value chains often transcend borders, so in Rhoda Tumusiime, Commissioner for Rural Economy and Agriculture, AUC, and Akinwumi Adesina, Nigeria’s Minister of Agriculture and Rural Development
  15. 15. 13 order to be effective, major investment is needed in hard infrastructure, such as rail and power. Strong regional coordination will be needed in order to harness these opportunities. Infrastructure is also required for provision of accurate data for weather forecasts, market prices and production levels. New technology and enhanced data provision will facilitate stakeholder decision-making and scale up investments. Lastly, participants agreed that on-farm infrastructure investments are critical if small-scale producers are to increase their productivity, and store their produce. Beyond finance, capacity-building and skills development are vital to support this transition. IMPROVING REGIONAL TRADE AND MARKETS Functioning regional trade systems and access to regional markets are central to the development of Africa’s agriculture sector. A lack of infrastructure and poor management of ports were identified as primary issues faced by regional trade across Africa. Similarly, logistical bottlenecks such as high transport costs and lack of direct routes affect all markets, especially land- locked countries. Other issues raised included road blocks at regional borders, inconsistent implementation of trade agreements, limited information flow between countries, and lack of standardized regulations for produce. The overarching solutions identified by participants focused on harmonization and communications. Regional ministers for agriculture, trade and infrastructure were called on to come to together to coordinate in improving the quality and management of cross- border infrastructure in order to facilitate investment in their respective sectors. Similarly, communicating to better standardize content and implementation of trade policies will benefit all stakeholders. Other solutions recommended by participants included improving monitoring systems, encouraging increased competitiveness of infrastructure assets through public- private partnerships, and convening industry leaders to discuss solutions for specific commodities. REDUCING POST-HARVEST LOSSES The African agricultural sector experiences up to 30% of post-harvest losses a year. Equipment was highlighted as one major issue, and the fact that unsuitable or uneconomical equipment is used at harvest time. In many cases, suitable equipment is not available and this leads to delayed harvesting, which in turn results in losses of harvest. Also, lack of proper transport facilities, including cold storage equipment, and poor transport infrastructure, contribute to post-harvest losses, particularly for fresh produce. Participants agreed that private sector participation is central to realizing reductions in post-harvest losses, and thus increased productivity. Private sector participation in the discussion provided valuable insight into companies’ issues and reasons for limited investment in infrastructure that would reduce post-harvest losses. Some of these issues include limited visibility of real supply chain costs, regulatory barriers, cheap and low quality imports, unreliable power, poor existing transportation infrastructure, and insufficient education of the workforce on food losses. A leader from the transport and logistics sector expressed their challenges in the region: “We transport perishables across other continents, but not currently Africa. One reason is the prohibitive cost of bringing refrigerated trucks here.” Viable solutions that were identified in this session covered the role of warehouse receipts, and the need to develop comprehensive warehouse and receipts systems that can be replicated across the continent. Similarly, attendees discussed the need to link to financing solutions providers to establish waste banks. Michael Mack, CEO, Syngenta, during the opening session
  16. 16. Convening partners Website www.growafrica.com Email info@growafrica.com Telephone +271 10 838 360 Twitter @growafricaforum FACEBOOK growafricaforum Grow Africa is unlocking and transforming Africa’s agricultural potential by catalysing investment into the sector. Grow Africa is doing this by providing a platform to create partnerships between investors, governments, and farmers, to identify opportunities, drive investment, and grow Africa’s agriculture. This Report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the Grow Africa Secretariat and do not necessarily reflect the views of USAID or the United States Government.

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