Marygoretti Gachagua, PAEPARD side event 29th September 2015 AAIN Exhibition and conference 28th -30th September 2015

1. Agriculture Investments in Eastern
Africa (2012/13-2014)
AAIN Exhibition and conference 28th -30th September
2015
Marygoretti Gachagua
goretti@eaffu.org
29th September 2015
.

2. Eastern Africa Farmers’ Federation
•22 member organizations
•10 countries

3. Dynamics within the agricultural sector
in EA
• Faster agricultural growth has put countries on the
path of a much broader transformation process:
rising farm incomes
raising demand for industrial goods;
lowering food prices,
curbing inflation and
inducing non-farm growth, and
creating an additional demand for workers.

4. EAFF countries relation to
agricultural sector contributions to
GDP
24
30
43
38
44
47
3
3.6
5.1
Kenya
Uganda
Tanzania
Rwanda
Burundi
Ethiopia
Djibouti
South Sudan
DRC congo
%GDP contribution from agriculture sector 2013 data
%GDP contribution from agriculture sector

5. Executive summary
• Africa’s agricultural sector has struggled to access the
financing it needs for sustained growth. Numerous
investments are however happening within the sector.
• According to Grow Africa (2013-2014) report, one
estimate suggests $11billion of investments is needed
each year to achieve the aspired expansion in
agricultural output in Sub Saharan Africa, a region
dominated by value adding agro-processing industries
that will generate jobs and wealth.
• Out of the 2009 L’Aquila process, development partners
committed more than $22billion in public resources to
fight food insecurity.

6. Global Alliance and Food security program
(GAFSP)
• GAFSP issued an addition $255M in grants and approximately in, bringing its total multi-lateral
funding to $961M in private and public investments and advisory services in 31 countries.
• The New Alliance is currently operating in 10 African countries more than 160 companies and more
than $7Billion in planned investments, $970M of which were implemented in 2013.
• Through this more than 2.6 million small holder farmers have been reached through services
training, sourcing and production contracts.
• GAFSP private sector window provides a mix of loans, credit guarantees and equity to support
small-medium sized enterprises in the agricultural sector.
• The private sector window invested $45M an provided an additional $4M in advisory services
support for agribusiness in the 14 countries.
• As at 31st December 2013, disbursement to government through public sector increased by 40% to
$117M.
• In 2012-2013, current and new development partners besides the United states pledged $233.5M
and the United states pledged to provide $1 for every $2 in new contributions up to a total of
$475M.
• In 2012-2013 current and new development partners pledged $573.3M in new funding.

7. Budget allocations per country for
agriculture in 2013/2014 financial budgets
Country Total budget (USD)
Billion
Agricultural allocation (local
currency) billion
USD Millions
Kenya 19.4 38.07 447
Uganda 5.03 403.4 145.8
Rwanda 2.2 148 220
Tanzania 11.4 299.4 169.8
Ethiopia 7
Burundi 815 (budget presentation not in line with all other budgets in EAC countries

8. Agriculture related programs highlighted in the respective EAC budgets
in 2014 /2015
Country Agricultural investment in budget
Kenya KShs 3.5 billion has been allocated for continuous development of the
Galana irrigation project
Other on-going irrigation projects were allocated KShs 6 billion
KShs 1bn provided to Agri-business fund
Inputs subsidy awarded KShs 3 billion
Strategic grain reserves - KShs 2.7 billion
Fisheries development-KShs 1 billion
Revival of the Kenya Meat Commission- KShs 0.7 billion
KShs 0.3billion set aside for the revival of the Pyrethrum sector
KShs 0.3 billion for the Free Disease Zone.
Tanzania Strengthening irrigation infrastructure in the nation including SAGCOT
Strengthening research institutes and investing in extension services
Construction of warehouses and markets
Availability of loans for promotion of food and cash crops production
Provision of better seeds and seedlings to small scale farmers

9. Country Agricultural investment
Uganda This report has focused on initiatives of the government, rather than corporate efforts and
establishes that special programs are only implemented by agencies and departments that
broadly share allocations to the Ministry of Agriculture, Animal Industry and Fisheries. (MAAIF)
The budget allocation to the sector in the financial year 2014/15 increased by UShs 58 billion to
stand at 440.7 billion compared to the previous year.
Rwanda The budget allocations in 2014/15 indicate a decrease from the previous year RWF 83.98 billion
to RWF 72 billion. The special allocations are made under broad thematic areas as follows:
Economic Transformation- agriculture sector allocated RWF 17.458 billion;
Rural Development- agriculture sector allocated RWF 54.323 billion;
Productivity and youth employment- agriculture sector allocated RWF 331.957 million;
Accountable Governance- agriculture sector allocated RWF 11.950 million; and
Foundational issues- agriculture sector allocated RWF 6 million.
Some special programs outlined in the budget estimates include:
Post-Harvest and Agribusiness Support project (PASP)- RWF 1.8 billion
Nutrition Support to Malnourished Children is ensured: RWF 1.8 billion
Priority Crops Intensification (Including Fertilizer Imports): RWF 10 billion
Immediate Action Irrigation project (GFI)- RWF 7.2 billion
Livestock Infrastructure Support Program (LISP)- RWF 2.3 billion
Gako Beef farm and tea expansion allocated RWF 2.5 billion and RWF 4 billion respectively.

10. Agricultural investments by Government
2013/2014
Government Commitment (USD) Areas of interest
Tanzania Government 4.1M Agricultural input fund
50.5M Sustaining the provision of fertilizer subsidies
2M Improved seed and seedling subsidies
2.4M Agricultural chemicals
9.8M Southern Agricultural Growth Corridor of Tanzania (SAGCOT)
focusing on increasing production of maize, rice and sugar
62.6M Strengthening agricultural services in local authorities which
include extension services, construction of agricultural
infrastructure e.g. feeder roads, abattoirs, irrigation schemes
and markets
Kenyan Government 136.7M Irrigation programs
23.5 M Agribusiness funds
65.9M Uwezo fund; support women and youth in business
Government of Uganda 2,139.6 Development of the Maize Value Chain

11. Expected commitment funds from various
development partners 2013/2014
Development partners Commitment (USD) Focus countries Areas of interest
European Union 252.4M Ethiopia Sustainable agriculture and food security programs
AFDB 1.8Bn Kenya Roads and energy
World Bank 2.8Bn Kenya Roads and energy
Other partners e.g. China, Japan,
Canada, Finland, Norway, Sweden,
USAID
2.8trillion Kenya Infrastructure investments
USAID, FAO, UNDP, China and JICA 9.82M Uganda Implementation of the agricultural sector development
strategy and investment plan2010/11-2014/15
AGRA 4.2M Tanzania SAGCOT
World Bank (Big results Now; Tz
govt)
50M Tanzania Professional management of farmer organization, renovation
and construction of agricultural infrastructure (Construction of
maize silos)
IITA Tanzania Programs on youth to attract them into agriculture
TIGO Tanzania Connect farmers to agricultural services and market
information including commodity market prices

12. Regional and global investments by various
development partners
Investor Amount of investment (USD) Area of interest
East African Development
Bank
361M Debt equity sources from both development finance institutions (DFI) and
commercial financial markets for long term financing to obtain the remaining funding
required
Grow Africa 7.2 bn Commercializing small holder agriculture ans strengthening resilience of SMES
1.2M Investments in Kenya; cassava, yams, maize, cocoa and rice
4.9M Investments in Rwanda; potato, horticulture, cassava and maize
New Alliance 20M Investments in Ethiopia; Maize, teff, wheat, barley
34M Investments in Tanzania; sugarcane, maize, rice, horticulture, oil seed
AGRA 5,385,967 Investments in Ethiopia; maize, teff, wheat, barley, beans
1,460,993 Investments in Tanzania; business support, loans, cassava
2,526,809 Investments in Kenya; WRS, bananas, cassava
510,000 Investments in Rwanda; income of farmers
898,846 Investments in Uganda; farmer productivity bananas, rice
498,275 Investments in South Sudan; rice, maize, sorghum, groundnuts

13. cont
Investor Amount of investment (USD) Area of interest
Bill and Melinda gates foundation $104,391 African Agricultural technology Foundation;
Increased participation in Policy by scholars
$150,000 Kilimo trust; Funding international
symposium
$10,982,157 AGRA; Policies to attract agribusiness
investment by private sector
$16,000,000 Food, Agriculture and Natural Resources
Policy Analysis Network; Agriculture and
nutrition
$4,000,000 International potato centre; Seed systems
and nutrition

14. Composition of agriculture-specific expenditures in
Kenya, average 2006/07 -2011/12
Payments to
producers -
input
subsidies
31%
Payments to
consumers
2%
Agricultural
research
17%
Technical
assistance
1%
Training
7%
Extension
18%
Inspection
(veterinary/pl
ant)
4%
Infrastructure
12%
Marketing
5%
Other
3%

15. Support to individual commodities in Kenya,
average 2006/07-2010/11
fish
54.79%
maize
18.60%
dairy
17.42%
cotton
4.47%
silk
1.94%
coconut
1.43%
coffee
1.06%
tea
0.30%

16. Farmer organization participation in
agricultural investments
• Farmer organizations participation in the new alliance is
vital to strengthen the accountability and advocate for
effective public policy to advance new alliance principles
and goals.
• Farmer organizations not only advocate for small holders
interests they also play a vital role in the private sector
actors.
• In some cases, FOs have signed LOIs for specific
investments in the new alliance e.g. Tanzania
Horticultural Association, the farmers union of Malawi
and the National Small holder Farmers Association of
Malawi.

17. Concluding statement (discuss)!!
• The argument that foreign investment in agriculture
holds key to Africa’s food security, particularly when
it is aimed at supporting smallholder agriculture and
sustainable farming, is a relatively straightforward
one and more comforting