Implementation of Advancing African Agriculture: An IFAD Perspective

Implementation of Advancing African Agriculture An IFAD Perspective Mohamed Béavogui Director Western and Central Africa Division, IFAD

Outline

Regional context

IFAD in Africa at a glance

3. Increasing development effectiveness in IFAD Programme

4. IFAD Strategic Framework

5. Translating Strategic Framework and Action Plan into operations

Support to policy engagement

Support to Institution’s strengthening

Knowledge Management and Innovation

6. Partnership

1. Regional Context

Regional Context: Diversity and Challenges

45 IFAD member countries in SSA (34 borrowers)

Many countries in conflict / political instability (WCA:20%)

Mixed impacts of agricultural and trade policies

Agriculture remains the largest economic sector: two thirds of total employment and most export earnings

Smallholder family farms with diverse agricultural and livelihood activities dominate 80% agriculture sector

Despite rapid urbanisation, poverty remains mainly rural

> 50% population & 70% of poor live in rural area

Rural poor disconnected from remunerative markets

Limited access to natural resources, technology, credit

Population growth, rapid urbanisation, rural-urban migration: opportunities and challenges for smallholder access to markets

1. Regional Context (continued)

Regional context: Opportunities

Increasing democratisation (local and national) and stronger FOs and CSOs

Regional integration (e.g. ECOWAS, COMESA)

Market liberalisation, growing demand in the cities, increasing commodity prices….

Agribusiness and value chain development: linking smallholders to markets

Continental initiatives: AU (land); NEPAD (FO support)

Many successes and innovations – need to scout, share

2. IFAD and Africa

IFAD is the third largest multilateral source of ODA for agriculture in Africa and a key contributor to rural development in Africa

Source: OECD, 2007 1133.5 154.8 978.8 United States 1707.7 462.9 1224.8 IDA 1137.8 486.2 651.5 EC 1402.4 675.7 726.7 IFAD 1516.0 493.0 1023.0 AfDB Total (USD millions) Rural Development (USD millions) Agriculture (USD millions)

2. IFAD and Africa (continued)

IFAD’s investment in African agriculture expanded in the last 10 years – while other donor assistance to the sector declined

2006-07

Sub-Saharan Africa

Number of Projects as at 30 June 96

Lending portfolio as at 30 June (IFAD financing) (USD m) 1 388

Co-financing mobilised from IFIs/ bilateral agencies (USD m) 871

Co-financing – Government counterpart funds (USD m) 873

Ongoing grants (large and small) 28.3

3. Increasing Development Effectiveness: IFAD’s Action Plan and Strategic Framework

Action Plan to increase development effectiveness (2005) - Increase effectiveness, efficiency and relevance - Organizational change - New policies and procedures to improve the way IFAD does

business

New Results-Based Country Strategic Opportunities Programmes

Targeting Policy

Supervision Policy

Knowledge Management Strategy

Innovation Strategy

New Project Design and Approval Processes

Strategic Framework

4. IFAD’s Strategic Objectives

IFAD’s Strategic Framework (2007-2010) outlines six strategic objectives for IFAD.

To ensure that poor rural people have better and sustainable access to, and have developed the skills and organization they require to take advantage of:

(i) Natural resources ( land and water );

(ii) Improved agricultural technologies and effective production services;

(iii) A broad range of financial services;

(iv) Transparent and competitive agricultural input and produce markets;

Opportunities for rural off-farm employment and enterprise development;

and

(vi) Local and national policy and programming processes

5. Translating the Action Plan and Strategic Framework into field operations

Two key ways to translate AP and SF into field operations:

Project and Programme financing and implementation Support

Support to Policy Engagement, Policy Dialogue and Advice (IFAD-IFPRI PRSP Programme, Hub for Rural Development and Food Security, IFAD/OECD/France Policy Support

5.1 Support to Policy: IFAD-IFPRI Partnership

Goal: help make the PRS an effective framework for reducing rural poverty in the region

Three main components:

(i) Tracking and reporting system (TRS)

(ii) Research and development on key PRSP rural poverty issues and processes

(iii) Capacity-building and dissemination

Coverage: All 15 ECOWAS countries with more intensive studies in 3 countries:

Ghana

Cameroon

Senegal

iii) Key: Agriculture to be embodied in PRSPs as main instrument to poverty reduction and agricultural development in SSA

5.1 Support to Policy: IFAD/OECD/France Support to African Agriculture Project (SAAP) (continued)

IFAD/OECD/France Support to African Agriculture Project (2004-2007)

Capitalize upon OECD methods and approaches to the analysis of agricultural policies and their impacts to WCA region

Build capacities in WCA and of governments to undertake policy analysis and develop better informed policies

Three country studies: Cameroon, Mali, Ghana

Need for further work: support African capacities to undertake Public Expenditure Reviews with focus to Agriculture and policy formulation with adapted tools drawing on those used in OECD countries

Continuing partnership: OECD Global Forum on Agriculture to be held in Rome in partnership with IFAD, WB and FAO (November 2007) on Agricultural Development and Poverty Reduction in Africa (results of SAAP to be debated)

5.2 Support to Institution Strengthening

IFAD mandate to support the development of the institutions of the rural poor - FOs, women, youth, indigenous peoples

If agricultural and rural development policies to be owned, need to increase farmer participation and voice in the policy process

IFAD has provided support to FOs to contribute to development of AU/NEPAD’s Comprehensive African Agricultural Development Program (CAADP), will continue at REC, local