Advancing Agriculture in Africa: IFAD perspectives from Eastern and Southern Africa

Advancing Agriculture in Africa: IFAD perspectives from Eastern and Southern Africa Ides DeWillebois Director Eastern and Southern Africa Division IFAD

ODA, along with public investment by developing countries, to agriculture and rural development in developing countries, has declined Year Africa Asia Latin America 1980 6.4% 15% 8% 2002 4.5% 5.6% 2.5% Source: World Development Report, 2008

The decline in ODA has occurred despite the facts: Fact # 1: Most of the poor are rural (70% on average in developing countries) Moz ambiq Cambodia Hondur as Sr i Lank a Maur itani T anz ania Nic ar agu Mongolia Vietnam Ethiopia G eor gia Bur k ina Uganda G ambia Z ambia Malawi Yemen G hana Ky gy z Nepal Niger Pov er ty Rates Rural 51 46 68 50 71 66 80 61 47 34 67 40 57 33 70 10 51 69 45 44 27 Urban 17 16 25 24 62 52 56 48 37 27 55 21 26 39 49 12 57 31 31 23 15 Difference 34 30 43 26 9 14 24 13 10 7 12 19 31 -6 21 -2 -6 38 14 21 12

Fact #3: Donor projects in agriculture perform as well as donor projects in non-agriculture • Close to 80% of IFAD projects, at completion, are rated as “satisfactory” • This compares, favourably, with the World Bank which shows 80-85% success rates in terms of economic return • There are high payoffs to investment in agriculture, especially, in research and development (R&D) and roads

IFAD is a comparatively large contributor to ODA (1998-2005) to Africa in Agriculture and Rural Development Agriculture Rural Development Total ($ millions) ($ millions) ($ millions) Bilateral France 564.7 184.0 748.7 Germany 461.9 197.6 659.5 Netherlands 277.5 149.8 427.3 United Kingdom 251.1 160.4 411.5 United States 978.8 154.8 1133.5 Multilateral AfDF 1023.0 493.0 1516.0 EC 651.5 486.2 1137.8 IFAD 726.7 675.7 1402.4 IDA 1224.8 462.9 1707.7

IFAD’s hierarchy of development objectives Overarching goal – Poor rural women and men in developing countries are empowered to achieve higher incomes and improved food security (aimed at MDG1) Strategic objective – Poor rural men and women in developing countries have Principles of better access to, and have developed the skills and organization to take advantage engagement of: • Selectivity and focus • Natural resources (land and water) on rural development • Improved agricultural technologies and production services • Targeting poor and • A broad range of financial services vulnerable people • Transparent, competitive agricultural input + produce markets • Empowering poor • Opportunities for rural enterprise development, employment rural people and their • Local, national policy and programming processes organizations, Operational outcomes – In the above six areas: especially youth and • Increased incomes and enhanced food security for women the immediate target group of IFAD-supported projects • Innovation, learning • Strengthened national capacities for agricultural rural poverty reduction and up scaling including knowledge Outputs – In the above six areas: management • Country programmes – innovative projects, multi-stakeholder programmes, • Partnerships with local and national level experience-based policy dialogue governments • Regional and global programmes – projects to build knowledge, policy (alignment), donors dialogue based on field level experience and others (harmonisation) • Knowledge products • Sustainability of project impact Instruments – in two ways: • Loans (including ‘zero-cost’ loans under DSF) to governments • Grants to not for profit organisations

IFAD in Eastern and Southern Africa • 46 ongoing loans worth USD 756 million and 33 ongoing grants worth 16.5 million: • Grants – Country and (small and large) regional grants – NGOs, governments and UN agencies – Strengthening farmers organisations, improved agricultural services and innovations, access to rural financial services, input and output markets • Loans – Sole financed (~40%) and co-financed (~60%)project and programmes – Governments, “aligned” (e.g. Medium Term Investment Frameworks) and “harmonized” (e.g. Sector-Wide Approaches) – Area-based, commodity-based, enterprise-based, financial service-based projects and programmes

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