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PhytoTrade Africa

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Presentation at IFAD October 2014

Published in: Government & Nonprofit
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PhytoTrade Africa

  1. 1. PhytoTrade Africa
  2. 2. International context (1/2) In 1992, 168 States ratified the Convention on Biological Diversity (CBD) at the United Nations’ Earth Summit held in Rio de Janeiro – 1st official international recognition of the urgent need to protect biodiversity, the need to ensure sustainable use of its resources, and the equal and rightful sharing of the benefits it represents. After a series of international negotiations, the Nagoya Protocol (NP) was adopted by the Conference of the Parties at its 10th meeting on 29th October 2010. To date, 92 countries have signed the Protocol and 53 instruments of ratification have been deposited. As a result, the Nagoya Protocol will enter into force on the 12th October 2014. Based on commercial and/or research partnerships between users and providers, the overall goal of Access and Benefit Sharing (ABS) is to contribute to poverty reduction, food security, technology transfer, trade development, social development including equity and rights, and biodiversity conservation. Furthermore, ABS will contribute directly and indirectly to the achievement of the Millennium Development Goals (MDGs), specifically to MDGs 1, 3, 7 and 8.
  3. 3. International context (2/2) Globally, industry requires innovative products from biological and genetic resources to meet growing consumer demand for natural and sustainable health and wellness products. Traditional knowledge, sustainability, ethical sourcing and the beneficial health properties of molecules, compounds and mixtures derived from biodiversity and contribute to successful commercial products and thereby create economic and development opportunities for stakeholders in the value chains. With legislations coming into force, industry shows willingness to engage ABS issues. However, where ABS regulations are defined in provider countries they are considered by industry to be complicated and challenging to comply with, and where they are not yet defined, they create uncertainty and therefore perceived as a business risk. SMEs in provider countries have limited skills and capacities to address these regulatory requirements which represent an additional burden upon small companies who also need to address the usual challenges of running a business profitably.
  4. 4. BioTrade refers to activities of collection, production, transformation, and commercialization of goods and services derived from native biodiversity under the criteria of environmental, social and economic sustainability. As southern Africa has significant plant biodiversity that can be sustainably produced by harvesters and farmers, there is significant scope to use these local resources for economic development. Scrutiny of various National visions (2020/2030), National development plans and industrial development policies and plans suggests that, if correctly implemented, ABS could play a strategic role in economic development in provider countries. Value adding, including manufacture of consumer ready products, can take place through creative SMEs who could be strongly linked to global demand for their products in foods and beverages, health, wellness, cosmetics and other sectors. Technology and know-how transfer (key elements of ABS) speak to many National development and industrial development policies wherein natural resource beneficiation can enhance broad based economic development plans. National contexts (1/2)
  5. 5. In the eight southern African countries in which its membership is based (Malawi, Zimbabwe, Zambia, Namibia, South Africa, Botswana, Mozambique, Swaziland), PhytoTrade Africa has the ability to build upon its experience and success and establish a vibrant and enduring trade in ingredients and consumer products derived from indigenous natural resources where rural communities have a strategic preferential access to market in way that leads to the protection and development of biodiversity. National contexts (2/2) Nagoya Protocol Status: Member countries, 7th October 2014 Countries acceded to Nagoya Protocol Botswana, Malawi, Namibia Countries ratified to Nagoya Protocol Madagascar, Mozambique, South Africa Countries not party to Nagoya Protocol Swaziland, Zambia, Zimbabwe
  6. 6. Next steps strategies 1- Geographical expansion 2- South Africa – Industrial development 3- National programs linkages
  7. 7. 1- Geographical expansion In order for the growing market for biodiversity-based natural products to generate substantial trade development opportunities for provider countries it is necessary for value chains to be supported to meet ABS and other regulatory requirements. The transaction costs of complying are high for all parties. The model developed by PhytoTrade Africa is one wherein SMEs and other key stakeholders are supported through a trade association providing technical, market and business development services across the value chain. This includes supporting community-based producer groups through SMEs in its membership to develop supply chains, products and market linkages, and supporting global industry to identify robust and traceably supply chains, innovative biodiversity-based products and comply with ABS and other regulations. Following requests from SMEs and other stakeholders in the sector, PhytoTrade Africa is ready to extend this approach to other African countries : as a start, from 2016 to 2020, to Madagascar, Kenya, Tanzania, Cameroun and Senegal.
  8. 8. 1- Geographical expansion A 5 years proposal concept split into 2 projects 2016 2017 2018 2019 2020 Project 1 Project 2 2016 2017 2018 2019 2020 Project 1 SA + Madagascar SA + Madagascar SA + Madagascar Project 2 Feasibility EA & WA expansion EA & WA SA + Madagascar + EA & WA SA + Madagascar + EA & WA Main goal Objectives Project 1 3 M€ Strengthen and expand BioTrade sector following ABS principals and PhytoTrade Africa’s charter principals in Southern African region Integrate Madagascar into PhytoTrade Africa's Regional network Significantly scale up BioTrade in Southern Africa to improve rural livelihoods, protect biodiversity, create jobs and develop sustainable SMEs Strengthen PhytoTrade's role and institutional capacity to support the BioTrade sector Project 2 5,5 M€ Strengthen and expand BioTrade sector following ABS principals and PhytoTrade Africa’s charter principals in Africa Strategy and process for the expansion of PhytoTrade Africa into East and West Africa (feasibility) Integrate East and West Africa into the PhytoTrade Africa network Scale up BioTrade in East, West and Southern Africa to improve rural livelihoods, protect biodiversity, create jobs and develop sustainable SMEs Strengthen PhytoTrade's role and institutional capacity to support the BioTrade sector in all regions
  9. 9. Next steps strategies 1- Geographical expansion 2- South Africa – Industrial development 3- National programs linkages
  10. 10. 2- South Africa – Industrial development Jobs Fund and SECO The Jobs Fund creates jobs by supporting initiatives that generate employment in innovative ways. The Fund offers once-off grants in the areas of enterprise development, infrastructure, support for work seekers and institutional capacity building. Established by the South African government in 2011, The Jobs Fund awards grants to organisations through a competitive project application process where only the best ideas are funded. The Jobs Fund accepts applications from the private, public and non-governmental sector during calls for proposals.
  11. 11. Next steps strategies 1- Geographical expansion 2- South Africa – Industrial development 3- National programs linkages
  12. 12. 3- National programs linkages • Mozambique • Zambia • Malawi • Namibia – National Marula Vision Program • ABS National programs – Madagascar, Senegal, Cameroun, Mozambique & Botswana

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