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Public-Private Partnerships for agricultural development in Africa


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Public-Private Partnerships for agricultural development in Africa

  1. 1. Mark Holderness Global Forum on Agricultural Research Public-Private Partnerships as a means towards agricultural development in Africa
  2. 2. The Global Forum for All in Agricultural Innovation  CGIAR & International research  FAO  IFAD  Farmers organizations  Civil Society Organizations  Private sector networks  Advanced research - G20 MACS & BRICS  Regional Fora – AARINENA, APAARI, CACAARI, EFARD, FARA, FORAGRO  Advisory Services - GFRAS  Education Institutions - GCHERA  Youth - YPARD
  3. 3. The Global Forum: Breaking down the walls • Development-centred thinking • Accountability of public services to funders and farmers • Stakeholders learning & innovating together, managing benefits & risks • Innovative knowledge access & transformation systems • Institutional reorientation & changed attitudes/values Convergence of R&D, education, enterprise, policies & resources joedale.typepad
  4. 4. Converging Voices Fostering Partnerships Re-imagining institutions Sharing knowledge Foresight for better futures Partnerships for impact Transformative Investments Capacities for change Research in development Accountability for actions Structure of the MTP and GFAR’s role
  5. 5. The Global Forum Rapidly changing roles and perceptions of the agricultural „private sector‟ in development  The private sector encompasses all areas for which services are paid for by the client, rather than being paid for from public funds. Roles include: • Input service provision, • Smallholder farmer enterprise • Enabling environment – credits, insurance etc • Markets for produce and processed foods, fibers, fuels etc. • Farmers are entrepreneurs, economic growth is a basic driver for change  Balanced by social and environmental considerations: agriculture and entrepreneurship are embedded in cultures and societies. Re-imagining the ‘private sector’
  6. 6. Innovation pathways Enabling environment & inputs Desired development outcome GCARD 2010: Knowledge & innovation are essential, but are not themselves sufficient for development Institutions & capacities supporting agricultural development & innovation
  7. 7.  Not just projecting what the world may become but for deciding what kind of world we would like to see in future  Trends are products of our behaviour – and can be changed  Smallholders must have a say in envisioning their own future  Need to inform policy choices about their implications  GFAR-FARA African Foresight Academy: Africa decides for itself, on its own terms  Enables understanding of implications of technological choices towards meeting desired ends Better Foresight: Reconciling diverse P-P perspectives Developing common visions for the future
  8. 8.  Productivity gap – a constraint of technology, or of inputs vs returns and risk aversion?  Rethinking agriculture from an engendered perspective… gender blind technology is not gender-neutral - Where is PPP investment in labour & time saving in production & processing, in value addition in market access?  Poverty reduction – future challenges will be in reaching the poorest sector – usually rural poor  Impacts of disrupted systems – e.g. protracted crises – what role for PPPs in 17 protracted crisis countries?  What value system and metrics do we ascribe to agricultural development & technologies? Re-imagining African agriculture – reflecting on our own pre-conceptions & technological choices
  9. 9. Partnership in innovation: all knowledge has value • Scientific knowledge is reductionist, trusted & validated by its method • Local knowledge is holistic, risk- aware, trusted & validated by experience • Need to link & reconcile these knowledge & trust bases • Sustainable development must value & capitalize on both P.VanMele
  10. 10. Clickstream data: how scientific literature is accessed and connected, from users’ downloading and browsing behaviour (PLoS ONE, 2009) Different worlds in a universe of knowledge
  11. 11. “Millennium Development Goals (MDGs) remain, overall “unfinished business.” “Progress has been insufficient in eradicating extreme poverty and hunger, and reducing child and maternal mortality” “Africa‟s economic growth has not brought about commensurate improvements in inclusiveness, job creation and human development. Harnessing trade for diversification requires redressing the wide array of constraints that undermine the competitiveness of African firms Need to move beyond the traditional donor-recipient logic,” “Must focus on harnessing the potential synergies and complementarities across different actors, both public and private, at global, regional, and domestic level.” “We are at an important juncture, where we need to create sufficient employment for Africa’s growing youth bulge” Africa’s Challenges: Economic Commission for Africa
  12. 12. The Global Forum  Considerable knowledge of public private partnerships (PPPs), but limited collation and collective capitalization of experience.  Known efficiencies of market competition where can pay for services.  Private sector alternatives encouraged as government services have fallen away with economic restructuring.  Opening of free trade and scale efficiencies have enabled seed and agrochemical companies, food processors and supermarkets to grow and bring benefits  But whose agenda? E.g. Equity and access to technologies and access to, and returns from, markets for small farmers  What do we measure as agricultural success? Income gains? Increased production? Increased nutritive value? Access to nutrition? African agriculture is transforming
  13. 13.  Private and public partners must truly understand and share the same objectives from the outset  How can PPPs reach the poorest, where there is least commercial imperative?  What can we learn from private sector investment in innovation e.g. commodity crops?  How to understand and empower the customers in these processes?  What policy and investment environment is required to ensure benefit to small farmers?  How can famers be empowered to grow their own livelihoods? – information access, market awareness, collective actions, support systems, innovation brokers, business mentors & incubators, risk management… Some PPP Challenges
  14. 14. Source: ASTI 2012 Public Agricultural R&D spending: Much of Sub-Saharan Africa still lags behind
  15. 15. The Investment & Capacity Challenge  NEPAD target: Allocation of at least 1 % of GDP to R&D  In 2008, Africa spent $0.61 for every $100 of AgGDP on agricultural R&D  Despite an overall increase in recent years, Africa underinvests in agricultural R&D
  16. 16. The International private input sector is changing fast Iowa State Univ. 2012 •Top 5 seed companies 9.4% market share in 1995, 45.9% in 2011 •Driven by research costs & scale of returns, economies of scale and regulatory procedures & costs
  17. 17. The Global Forum Delivering advanced research products through seed, with IP protection has led to very rapid takeovers & consolidation in the seed industry:
  18. 18. Historically: public seed monopolies, stifling regulations, and lack of access to good quality inputs. Time for change? Requires…  Reforms on seed policy, law and regulations to enable germplasm movement across countries, variety release, and action by private sector.  Private sector diversity and availability of new varieties needs enabling environment and flexible financing products.  African seed companies are waiting for action - in India seed business has already been a success for business and farmers: S-S linkages?  Training of researchers and seed value chain actors, agrodealer networks, community based seed multiplication, etc.  Small enterprises need scope for entry-level systems: quality- declared seed etc Seed sector – prospects for successful interventions? (World Bank, 2012)
  19. 19. Balancing Farmers Rights & Breeders Rights  Small scale local family farmers play essential role in development & conservation of agro-biodiversity  International plant variety protection (UPOV) exists since 1960s  Farmers rights & returns recognized only since 1980s and 2001 International Treaty - ITPGRFA  National implementation of Farmers rights is still very weak  Farmers Rights and rights over new plant varieties should become mutually supportive Not just about the technologies, but their Access & Equity for benefiting smallholders…
  20. 20.  To know & apply farmers rights via good practices  To develop strong policies & legal/administrative measures to protect rights of farmers over traditional knowledge  Farmers to participate in decision making  Fair & equitable benefit-sharing systems  Ensure the exchange, use and saving of seed & propagating materials It is time to recognize that implementation of Farmers Rights is crucial for food security & rural livelihoods worldwide For this, we need:
  21. 21. New Technologies- Information and Communication, Bio- Technology and Materials Sciences applied individually and together Bringing new opportunities in agricultural services, agro- industries and agribusiness Transforming Agricultural Research, Innovation, Extension, Education and Enterprise Public Research-Private Sector composite applications
  22. 22. Using Open Access Data and Networked Local Weather Stations with Forecasting Models for Risk Aversion and Management In Kenya for Crop, Disease and Pest and Insurance in Smallholder Tea and Coffee Plots Data Inter-operability for farmer support
  23. 23.  Much scope for value addition on farm  Major CSR investments e.g. cocoa in W Africa  Major food companies making a business virtue of sustainability e.g. Unilever  Major challenge in accessing high value markets: infrastructure  Quality and supply assurance, food safety assurance, traceability  High end research cost, e.g. flavour chemistry, aromatics  Packaging and marketing cost account for much of value addition  Little accountability from supermarkets to producers  Requires more effective cooperatives/producer companies for enterprise scale, market access and support Food chains and value addition
  24. 24. An example: a Win-Win for Small Holders and the Food and Beverage Industry Effective integration of smallholders into food supply chains – a win-win Smallholders benefit by increasing their capital Processors and the food industry obtain a reliable, steady supply of safe and quality raw materials The Coca-Cola Company trained rural youth in the sustainable production of oranges in Costa Rica with technical oversight and guidance of EARTH University  Students gained valuable skills in citriculture, research Positive changes to farm’s mgt Multiplier effect Multistakeholder processes Community benefits
  25. 25. For small-holders and farmers - Empowering them with both opportunities for learning and information , i.e. Make them knowledge-able For rural technicians and artisans- Technical and vocational training For extension workers/change agents-Training in soft /personal mastery skills For entrepreneurs, traders, processors, wholesalers & those who interface with producers and business people - Improving agribusiness education in agribusiness Building the Human Capacity Pyramid in Africa For policy makers, scientists, researchers- Providing opportunities to study in the wider contexts of economic dev’t, security, world trade, climate change,
  26. 26. Strengthen Africa’s ability to build capacity:  Creating entrepreneurs by establishing appropriate courses, soft skills, internships and industrial attachments.  Deepen engagement by creating the appropriate conditions for the involvement of the private sector in research, extension & education.  Enable the private sector to become a genuine partner  Make graduates and research products more fit-for-purpose  Smallholder producers , particularly women, constitute the largest sub-sector in the private sector; particular attention will be paid to empowering their learning and acquisition of knowledge.  Value of AATF! FARA MTOP
  27. 27.  Lack of productivity and market gain, high cost of inputs and transportation costs, exploitation by middle men.  Little public- private sector dialogue on investment in agricultural infrastructure: irrigation, transportation, warehouses...  Inadequate opportunities for Business Development Services, market sourcing, financing of early stage agribusinesses  Lack of enabling business environment  Little participation of youth, women and poor in agribusiness in financial, labour, service & goods markets  Small farmers and traders are under- represented and vulnerable. Some key challenges need to be resolved by policy changes and investment (PanAAC)
  28. 28. New Alliance Platform to Enhance Adoption of Agricultural Technologies by Smallholder Farmers  The G8, 2012 US presidency, set up a new Technology Adoption Platform to improve delivery of improved agricultural technologies for sustainable yield, resilience, and nutritional impacts.  USAID, CGIAR, FARA, SROs, AGRA and others now working to design the Platform and facilitate its implementation.  Platform developed to meet the needs of the six New Alliance countries  A Knowledge-Sharing ICT Platform: describing the technologies/innovations on offer and enabling their access Agricultural innovation & enterprise platforms – a key need for Africa e.g. G8 New Alliance
  29. 29.  Incentivize scientists for technology transfer  Develop alternative end products  Provide entrepreneurs with internships  Provide rural enterprises management support and services, including risk coverage  Simplify IPR procedures & clearances  Certified training for quality & credibility  Producer companies – cooperatives with technical & managerial expertise  Open out donor schemes to foster private innovation  Work actively across diverse sectors  Scope for S-S linkages & learning Enterprise Incubation from Innovation: Some ideas from India
  30. 30. PanAAC country platforms for mobilization of Government Public Private Partnerships (PPP) Enables private sector interaction with African Governments to facilitate policy formulation, value chain knowledge and information sharing, trade, improvement of productivity, etc e.g. Kenya Agribusiness and Agro-industry Alliance (KAAA), brings together all stakeholders along the agricultural value chain with the Kenyan Government in the implementing the Agricultural Sector Development Strategy. Strongly linked with the AU/NEPAD‟s CAADP and the implementation of African NAIPs.
  31. 31.  Earth University ethical entrepreneurship: Social and environmental awareness and commitment,capacity to generate positive change.  Students form and operate a business venture from beginning to end during their first three years study, gain a comprehensive understanding of what it takes to start a business Dynamic and participatory, facilitated learning:  Students explore real challenges and become active participants in generating knowledge, not passive receivers of information.  Students learn through deliberate experiences designed to encourage learning New skills for Youth, entrepreneurs of tomorrow: e.g. Earth University, Wageningen Univ. ‘Golden triangle’
  32. 32. Almost 50% of farmers are women, yet receive 10% of income and 5% of technical assistance in agriculture – not even considered farmers in some countries FAO State of Food & Agriculture: Women farmers, given equal access to inputs, are as productive as men farmers Research and innovation still often totally missing women‟s needs Women as entrepreneurs e.g. Niger: • Men of household sought input technologies, production and returns • Women sought labour & time saving, value addition and household nutrition
  33. 33. Key issues:  access to resources and returns, reorienting innovation systems to reduce labour, energy and time in production, focus on value-addition post harvest, child nutrition  GCWA: 5 point Plan to „engender‟ Agriculture & AR4D systems  GAP: open & inclusive partnership mobilizing actions across many national, regional & international bodies  Engaging national, regional and international bodies from all sectors – CGIAR, UN , FOs, CSOs, RF, private sector  Advocacy, knowledge sharing, triggering programmes - eg ERWW Liberia, Ethiopia, Niger, Rwanda Gender in Agriculture Partnership: Women at the centre of innovation processes
  34. 34. Implications for AATF & for African innovation systems  Technological options are choices determined by societies  Sustainability makes good business sense  Farmer is the customer – not just the taxpayer  Requires effective accountability & feedback mechanisms  Empower farmers (her!) in innovation investments  Transform education with new skills & approaches  Share knowledge and learning via multi-stakeholder platforms  Develop support systems for collective enterprise
  35. 35. Thank You