Policy Partnership for African Agriculture_2009

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"Policy Partnership for African Agriculture" presentation by Akin Adesina, AGRA at the NEPAD, IFPRI, AGRA and World Bank Meeting to Align Efforts on Agricultural Policy and Knowledge Systems, Dakar, Senegal, January 6-7, 2009.

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Policy Partnership for African Agriculture_2009

  1. 1. Policy Partnershipfor African Agriculture Akin Adesina Vice President AGRA
  2. 2. Africa’s food crisis: root cause is low productivity in the staple food crop sector 6 China S.Asia SS Africa 5Cereal Yields t/ha 4 3 2 1 0 1961 1966 1971 1976 1981 1986 1991 1996 2001 Source: FAOSTAT (2001)
  3. 3. Africa’s Plan to Turn the Food Crisis Around: Home Grown Solutions1. African governments commit to the CAADP goal to attain 6% agricultural growth2. Governments pledge 10% of national budgets to agriculture3. A structural solution is needed to raise agricultural productivity growth in the staple food crop sector4. African Heads of State call for an African Green Revolution
  4. 4. Africa is very different from Asia: A uniquely African Green Revolution is needed The Sahelian Drylands Area: 1.2m km2 Population: 38m Millet & sorghum belt: 23m ha Humid Forest Zone Moist Savanna and Area: 5.8m km2 Woodland Zones Population: 168m Area: 4.4m km2 Cassava belt: 18m ha Population: 157mNERICA potential: 2m ha Maize belt: 32m ha CA potential: 7m ha
  5. 5. Advances in crop improvement couldtrigger the Africa Green Revolution….BUT
  6. 6. Soil nutrient mining is underminingagricultural productivity growth! 1995-97 2002-04 Source: IFDC
  7. 7. AGRA supports the CAADP agenda: a partnership to help Africa feed itselfAn Africa-led dynamic partnership workingacross Africa to help millions of small-scalefarming families lift themselves out of povertyand hunger
  8. 8. AGRA brings solutions-driven approaches that support CAADP growth target in Africa Seeds Program ($150 m) Soil Health ($180m)Investments Market Access Policy Program Agricultural Extension Water Resources l l l l l l l l 2007 2008 2009 2010 2011 2012 2013 2014
  9. 9. Green Revolution will help achieve CAADP goal in AfricaWhile challenges persist.. ...there is positive trends afoot• Limited use of GR technologies • 2003: Maputo Declaration• Limited level of public investments • 2004: Kofi Annan calls for a unique• African farmers are very poor African Green Revolution• Structural adjustment has failed • 2006: AGRA launched• Markets alone are not enough • 2006: Paris Declaration• Need stronger public sector role • 2007/8: WDR 2008 focus on agriculture Achieving the African green revolution will require comprehensive investments in technology, infrastructure, markets and policy 9
  10. 10. Policies have often failed: Challenges in the past• Lack of country ownership of policy agenda• Weak policy analytical capacity at country levels• Poorly financed national policy institutions• Supply-driven policy work - low demand by policy makers• Lack of coordination on policy efforts
  11. 11. What is needed now• Build local capacity for evidence-based policy development• Strengthen policy centers of excellence • National • Regional• Stimulate demand-driven policy research• Inclusive policy dialogue processes• Move from policy research to policy action• Strong sector policies to stimulate rapid agricultural growth and reduce food insecurity• A framework for comprehensive policy support to achieve CAADP pillar goals and the African Green revolution
  12. 12. New opportunities to coordinate policy support for agriculture • CAADP endorsement by African governments • integrative framework for African agricultural growth • Paris declaration/Accra HL meeting • country ownership • Need for donor harmonization • Food Crisis slows economic growth • need appropriate policy responses • Green Revolution for Africa (AGRA) • need for proactive policies in support of farmers • Regional trade critical for addressing growth • Need for stronger regional policies to spur agricultural trade
  13. 13. How to achieve policy alignment• Support countries to develop National Green Revolution (GR) strategies and align with CAADP• Support National Policy Hubs (NPH) to: • develop enabling policy frameworks for achieving green revolution • Provide policy analytical support for CAADP roundtable processes • lead national agricultural expenditure reviews to meet GR-CAADP goals • Build data and statistical systems for evidence-based policies• NPHs become institutionalized national platforms for policy initiatives in support of the GR/CAADP agenda• Provide strategic support for ReSAKSS and link these with the National Policy Hubs• Develop comprehensive Country Policy Engagement Frameworks (CPEF) to promote CAADP and GR goals• Link Macro-economic policy think tanks and NPHs • Coordinated financing by donors
  14. 14. Policy strategies to achieve a green revolution“What African agriculture needs today is a policy revolution” – Kofi A.Annan, Dublin 2008 1. Country- specific GR strategies 2. New policies to 5. Mapping of stimulate GR Bread Basket technology Areas Green uptake Revolution in Africa 4. New institutional pathways to policy 3. Strengthen development and policy analytical implementation capabilities 100M farmers removed from poverty through greater access to GR technologies in 5 years 14
  15. 15. 1. Development of coherent and comprehensive country-specific GR strategies is critical to spark national GR The old model The new model Paris Declaration Country-driven, Donor priorities specific strategy Government priorities Agriculture and expenditure Ministry Plans Stakeholder No Green alignment Revolution Green Revolution • Creates real local ownership • Mobilizes public investment • Aligns donors priorities • Creates framework to assess progress 15
  16. 16. Roles for National Policy Hubs• Identify national breadbasket areas where GR can be achieved with CAADP investment targets  Link to ReSAKSS• Create a critical mass of public good investments to launch the GR at country levels  Link to ReSAKSS• Develop national data systems to support evidence-based policy development in support of the GR  Link to ReSAKSS• Identify and advocate market and regional trade policies to expand markets and growth  Link to ReSAKSS• Identify and advocate for input policies to rapidly expand access of farmers to GR technologies• Develop national-level M&E systems for tracking investments for GR  Link to ReSAKSS
  17. 17. 2. Immediate support is required to develop new policies that stimulate uptake of GR approaches and technologies Examples of Challenges Target positive results Seeds and • Demand constraints • Accelerate uptake of Fertilizer • Supply constraints technologies • Expanded benefits to Land and • Systems biased against women women farmers Property • Expanded food security • Under-developed land markets Rights and higher incomes Risk • Weather and market risks Management • Correlated risk of default Credit and • Limited lending to agriculture • Limited access to finance for •Need multiple policy Finance entry points the value chain actors •Need country-specific Markets policy interventions and Trade • Poorly developed markets Policy • Limited value addition 17
  18. 18. 3. Strengthening policy analytical capacity in target countries is important to sustain a local enabling environmentCurrent situation Goals •Create local capacity to address•Limited capacity to develop analyses current and emerging policyand adjust policies accordingly challenges•Over-reliance on external advisors •Provide platform for evidence- based policy analysis and decision•Reduced ability to push back on makingdonor driven interests •Provide credible local entry point•Limited local ownership of the policy for engaging policymakers on GRprocess 18
  19. 19. 4. Development of new institutional pathways to policy development and implementation Government Farmers Improve dialogue Donors Mobilize support needed for investment Develop pro-poor policies Policy Private sector Analysts For a Green Revolution to occur, multiple stakeholders must be aligned in intention and action
  20. 20. 5. Bread Basket Areas (BBAs) are high priority targets for sparking GR at country and regional levels Identify high potential BBAs within and across countries Comprehensive Trigger new GR investment and investments Articulate investment levels necessary in low delivery strategies to tap the potential of BBAs potential at national levels areas for Define gap in investments and a equity plan on how it can be closed 20
  21. 21. Policy Revolution: smart subsidies and public goodsinvestments are needed to jump start the African Green Revolution to achieve the CAADP goal Share of spend Public and Private Investment Subsidies Time
  22. 22. Malawi’s success with home-grown policies offers new opportunity“Poverty will not be a national endowment of Malawi. We must feed ourselves. I will not suffer the indignity of begging for food” His Excellency Dr Bingu wa Mutharika, President of Malawi, explaining his country’s farmer support programs at an international forum in Oslo
  23. 23. How are these strategies made operational? No/Limited role Partial/Potential role Core role 1. Country 2. New policy 3. Develop 4. New 5. BBAs GR development policy institutional strategies analytical pathways capability A. Creation of in- country Policy Hubs B. Expanding Post- Graduate training C. Innovative financing to unlock new capital for Ag D. National and regional GR Policy Forums E. Commissioning policy studies
  24. 24. A. Creation of in-country policy hubs Required resources Role of the hubs Location considerationsGeneral Staffing • Support implementation • Determine on a country• Director of the national GR by country basis via•Program Officers strategy and policy comprehensive study of framework options.In-country advisory boardto ensure connection at • Advocate for evidence- • Options include:highest levels in based policy − Independent unitGovernment and industry. improvements within Government (typically Ministries of • Provide core research Finance and support to Government Agriculture) and stakeholders − Embedded within a • Align expenditure and existing institution investment towards critical GR needs − Create a new entity where necessary
  25. 25. B. Expand Training of the Next Generation of Policy Analysts in Africa Scale up Masters’ Program in Agricultural and Applied Economics for Africa (CMAAE) Current situation Specific goal •Launched program in East and Southern Develop applied economic Africa graduates with strong skills in policy analysis and policy implementation •Implemented in 16 public universities in across Africa 12 countries Broad goals •Goal: train 400 + policy analysts in ESA •Strengthen local policy making •Cost-effective and world-class training in environment across the continent Africa •Build capacity for evidence-based •Great demand now to expand to West policy research and analysis and Central Africa •Promote agricultural development
  26. 26. C. Africa needs financing support to achieve CAADP goal Current challenge Potential solutions • Need to leverage domestic financial markets • Overall ODA for agriculture has to work for the GR decreased in the last decadeigure 1: Agriculture, Rural Development, and Total ARD ODA: Africa 1974 -2005 • Existing AGRA initiatives on unlocking (Millions of 2005 Constant $US) 6000 private financing are promising – Equity Bank in Kenya – Standard Bank in 4 target countries 5000 4000Millions $ US ARD Total 3000 Agriculture Rural Development 2000 • Global Fund to scale up public 1000 financing for GR at country levels 0 • Partnerships with Governments 1974 1977 1980 1983 1986 1989 1992 Years 1974 - 2005 1995 1998 2001 2004 to scale up innovative financing Agriculture, rural development and total for GR from commercial banks ARD ODA for Africa, 1974-2005
  27. 27. Required agricultural growth and expenditure to meet MDG 1 in African• Agricultural growth rates • 7.5% - 8.5%• Agricultural expenditure growth rates • 21% - 24%• Annual agriculture expenditures • $ 32 Billion - $ 39 billionSource: Fan et al., 2008.
  28. 28. AGRA launches innovative financing models to leverage commercial banks• Excess liquidity exists in financial markets• Need to reduce risk of lending to agriculture• Loan guarantees with commercial banks• Successes in Kenya and Tanzania– Kenya: $5 million loan guarantee leverages $50 million from the Equity Bank– AGRA working with partners to launch a $200 million facility for 4 African countries
  29. 29. D. Facilitate national and regional GR policy forums • Rally in-country stakeholders to develop and National roundtable execute a common GR strategy discussions • Focus on the critical bottlenecks within countries • Occur every 6 months • Regional forums for senior Government officials (PS, Chief Economist of Ag etc.) Inter-governmental • Opportunity to engage with peers to share GR forums strategies, policies and experiences • Occur annually • Hosted by respective regional economic institutions (e.g., COMESA, SADC, ECOWAS, ECA, Regional economic NEPAD/CAADP) forums • Focus on regional policy and trade issues • Occur every 6 months
  30. 30. E. Policy studies to inform evidence-based policy development andimplementation at national levels Current situation Need strong, Africa-relevant case- •Policies are not informed by studies to inform policy dialogue robust understanding of best practices Examples: • Seed policies and •Paucity of data limits harmonization development of evidence-based • Fertilizer policy best-practices policies by analysts • Land policy best practices •Governments are under pressure • National public expenditure to implement policies without reviews/investment strategies sound analysis of alternative • Food security policies options • Market and trade policies 31
  31. 31. Asia green revolution was triggered by global financing: African agriculture needs a Global Fund to succeed
  32. 32. Policy Partnership for African Agriculture• Move towards an African Consensus on the policy agenda• National policy institutions lead the policy agenda• GR policy work will be aligned with CAADP goals and targets• Stronger and more analytically-driven policy inputs into the CAADP roundtable processes• Comprehensive support for building a coherent “policy ecosystem” at national and regional levels• Strong policy support for Regional Econ. Communities• Strong partnership between AGRA, NEPAD-CAADP, World Bank, IFPRI and others partners at national levels• Coherent and comprehensive framework for policy support to Africa
  33. 33. AGRA-NEPAD-IFPRI-WBPolicy Partnership for African Agriculture: The time is now!

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