The document discusses the development of the rice value chain in East and West Africa. It outlines the challenges facing rice production on the continent but also its high potential given suitable conditions. The Competitive African Rice Initiative (CARI) is a European Commission program aimed at developing the rice sector through a matching funds mechanism that leverages private sector investments. CARI Phase I achieved increased productivity, efficiency and incomes for farmers in several countries. Phase II will expand these efforts to additional countries and smallholders through multi-actor partnerships along the entire rice value chain. Key approaches include matching funds, farmer business schools and an expert training program.

1. Page 1
Developing the rice value chain in
East and West Africa
Major challenges but high potential
European Commission / Unit DEVCO.C1: Rice value chain development
Brussels, 30 November 2018

2. Page 2
• Agricultural Value Chains for Sustainable Development (A4SD)
• Why Rice?
• CARI Phase I - Results and Achievements
• Introduction of CARI Phase II
• Matching Fund
• Multi Actor Partnership
• Challenges and Lessons Learned
Content

3. COMPACI ComCashew CARI SSAB CAGI
ComCashew ─ Cashew CARI ─ RiceCOMPACI ─ Cotton CAGI ─GroundnutSSAB ─ Cocoa
Umbrella program
Agricultural value chains for Sustainable
Development (A4SD) in Africa

4. Matching Fund: Leveraging Private Sector Investments
Total funds A4SD
(cash and in-kind)*
Matching Fund (MF)
(cash and in-kind)*
286 Mio. € 94 Mio. €
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BMZ + Co-Fi
Public
Private profit
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Private profit in MF
Public in MF
BMZ+KOFI in MF
*until 06/2017

5. Why Rice?

6. The world eats rice
Produced on 160
million hectares,
mostly by 144
million smallholder
farmers
Uses 34-43% of
the world’s
irrigation water for
production
Resource
Efficiency
Climate ChangeFood Security Biodiversity
Staple for more
than 3.5 billion
people
Provides livelihoods
for over 1 billion
people
Responsible for up
to 10% of global
methane emissions
Rice farmers are
very vulnerable to
climate change
impacts
Rice fields
represent 15% of
the world’s
wetlands
Rice fields help
mitigate loss of
habitat for water
birds

7. Rice is becoming one of the most important food crops on the African continent.
Caused by:
• Steep population growth
• Rapid urbanization
• Changing consumers diets
Africa eats rice
22%
13%
8%
7%
0%
5%
10%
15%
20%
25% Sub-Sahara Africa
North Africa
Developing World
Asia
Consumption Growth Estimates: 2018-2026
0
5
10
15
20
25
30
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018Production raw rice
Imports milled rice
Consumption in Sub-Sahara Africa:
• 2018 26.6 million MT
• 2026 34 million MT
Rice Production and Imports: 1990-2018 (Mill. MT)

8. Meeting future demand (1)
“It is estimated that 65% of all the
uncultivated arable land left in the
world, to feed 9 billion people by
2050, lies in Africa.
(President of the African Development Bank, 2016 )
„Africa has the human, physical
and economic resources to
produce enough rice to feed itself“
(AfricaRice)
Example: Tanzania

9. Meeting future demand (2)
“There is no reason why Africa
should be spending US$ 35
billion a year importing food”
(President of African Development Bank, 2018)
International Rice Research Institute

10. Page 10
Competitive African Rice Initiative
(CARI)

11. Page 11
CARI Phase I - Results and Achievements

12. Page 12
Improved Access to Financial
Services for all Value Chain Players
Increased Efficiency of local rice
sourcing, processing, and marketing
Increased Productivity and quality
of paddy rice
Improved Policy Framework for
Rice Value Chain
Objectives Contributing to the main objective
CARI I trained > 178,000 farmers
Income and nutrition situation of
resource poor male and female rice
producers and their families in BF,
GH, NG and TZ is sustainably
improved
Double farmers
income from 2 to 4
US$ per person
per day

13. Page 13
Main achievements in CARI I (until June 2018)

14. Page 14
Introduction of CARI Phase II

15. Page 15
CARI Phase II
Project name Competitive African Rice Initiative
(CARI) II
Project
duration
• July 2018 until June 2021
Project
countries
• Tanzania
• Burkina Faso
• Ghana
• Nigeria
Political
partners
• ECOWAS
• Tanzanian Ministry of Agriculture,
Livestock and Fisheries
Approaches • Matching Fund
• Multi Actor Partnership (MAP)
CARI´s inventions directly
contribute to the achievement of
the following SDGs (Agenda
2030)…

16. Page 16
Improved access to financial
services for actors of the rice value
chain
Sustainably improved
inclusive business relationships
Increased experience sharing amongst
actors of the rice value chain
Improved Policy Framework for
Rice Value Chain
Objectives
CARI II will integrate 60,000 farmers in sustainable
business linkages
Contributing to the main objective
The productivity of the producers
and processing companies in the
rice value chain has improved on a
broad scale

17. Page 17
>60,000
Smallholders
engaged in 4 countries
CARI Phase II Outreach
14Matching fund
projects
>30%
Female Farmers
Multi-actor
Partnership
platform
MAP4Rice

18. Page 18
Advisory and Operational Services
(including training in good agricultural practices, parboiling, milling, business skills)
Local and Regional Advocacy
Primary
Producers
Primary
Producers
Input
Providers
Traders
Retailers
Millers
Increased
Productivity
Increased Efficiency and Linkages
Improved Access to Financial Services
Improved Policy Framework
CARI offers unique services across the entire rice sector
Final
Consumers

19. Page 19
Proven approaches with high potential for upscaling
Matching
Fund
Farmer
Business
School
(FBS)
Master
Training
Programm
An integrated
development
partnership model
Agripreneurship
for farmers
Demand
orientation
Creating a pool of
experts for sector
development

20. Page 20
Matching Fund

21. Page 21
• engages private partners at different levels of the value chain
as well as public actors
• contractual cost-share between GIZ e.g. CARI and matching
fund partners
• leverage contributions from partners to enable them to
implement specific interventions
• guarantees ownership
• leverages public investment
• sustainability
Success factor blending:
Matching Funds an innovative funding instrument build on the PPP-concept
Characteristics
Impact
Value for
money!

22. Page 22
$
Private Sector
Investment
† Federal Ministry of Agriculture and Rural Development
CARI Matching
Fund
CARI I had a MF leverage = 60% to 40%
CARI II leverages the MF = 66% to 33%
Matching Fund: Leveraging Private Sector Investments (1)

23. Page 23
Total Funds CARI Matching Funds (MF)
29%
6%
65%
0%
100%
53.4 Mio. €
Total private funds (incl. MF partner, BMGF,
Walmart, credits)
Total public funds (incl. MF partner)
ODA (BMZ)
37%
19%
44%
0%
100%
16.3 Mio.€
Private MF partner contribution
Public MF partner contribution
CARI matching fund contribution
Each 1 EUR from BMZ is matched by
0,20 EUR from public partners and
2,23 EUR from private partners.
Each 1 EUR from CARI is matched by
0,52 EUR from public MF partners and
1,18 EUR from private MF partners.
Matching Fund: Leveraging Private Sector Investments (2)

24. Page 24
Multi Actor Partnership

25. Page 25
Multi Actor Partnership (MAP)
Cooperation with and support to
policy agencies
• ECOWAS
• Ministries of Agriculture in NG, BF, GH &
TZ
Harmonizing approaches with key donors in
rice sector
• BMZ (German Federal Ministry for
Economic Cooperation and
Development)
• BMGF (Bill and Melinda Gates
Foundation)
Cooperation with other regional
organizations and research institutions
• AGRA
• AfricaRice

26. Page 26
MAP Success Factors
Common strategy and
planning
Steering and resources
Process management
Monitoring, evaluation and
learning
Context
Cooperation management
Joint development of goals, joint leadership and
responsibility, high-ranking (political) support
Neutral project secretariat, inclusive and transparent
decision making and steering, sustainable resource
management
Implementation and goal orientation, clear roles,
transparent communication strategy
Process and goal monitoring, evaluation and
reporting, learning processes and capacity
development
Global context, meta-government
Integration of relevant actors, respectful cooperation,
establishment of “common” language

27. Page 27
Challenges and Lessons Learned

28. Page 28
A political sector / Import versus self sufficience
• Policy Advise
• Policy harmonisation
• SRP (Sustainable Rice Platform) and sustainable GAP (Good
Agricultural Practices) training
Cropping and investment
• Agricultural Mechanization
• Access to finance
• SRP and sustainable GAP training
Challenges faced and solutions implemented (1)

29. Page 29
Fragmented value chain
• Contract farming
• Learning events (bringing different actors of the value chain together)
• Policy dialog platforms
Heterogenous Matching Fund partners
• Individualised support by CARI value chain officers
• Demand-based and tailor-made contracts (specific trainings, etc.)
• Short-term expert pool for individual business advice
• National and regional learning events for MF partners
Challenges faced and solutions implemented (2)

30. Thank you for your attention!
Jean – Bernard Lalanne
Head of Program
CARI
Phone: +234 805 230 2719
Email: Jean-Bernard.Lalanne@giz.de
Dr. Ulrich Sabel - Koschella
Head of Unit
Value Chains Agriculture
Phone: +49 6196 79 1438
Email: Ulrich.Sabel-Koschella @giz.de
www.giz.de
www.a4sd.net
www.cari-project.org
European Commission / Unit DEVCO.C1: Rice value chain development
Brussels, 30 November 2018

31. Page 31
Matching Fund Mechanism

32. 2030
Global Commitments & Agreements Priorities of German Development Policy
• SDG: 1 (poverty), 2 (hunger and malnutrition)
• G7 Elmau: lift 500 million people in developing
countries out of hunger and malnutrition by 2030
• G20 Hamburg: initiative for rural youth
employment and productivity increases in
agriculture as part of the G20-Africa partnership
• European Consensus on Development
• Paris Climate Agreement
• New York and Amsterdam Declaration on Forests
incl. deforestation-free supply chains
• Marshall Plan with Africa: Economic development and
fair trade, protection of natural resources, creation of
job and training opportunities, reform partnerships,
Malabo Declaration and AU Agenda 2063
• Berlin Charta: Creating Opportunities with the Young
Generation in the Rural World
• Special initiative ONE WORLD – no hunger:
1. Food and Nutrition
Security, enhancing
resilience
2. Fostering innovation
3. Shaping rural
transformation
4. Protecting natural
resources
5. Fisheries and
aquaculture
6. Securing access to land
GIZ in Agriculture and Rural Development:
Framework

33. Page 33
A4SD : Development partnerships with the private sector (DPPs)
Matching Funds
Strategic
Alliance
Parallel –
Financing
Integrated DPPs
(iDPP)
Grants for non-profit
partner
Other Cooperation
agreements (MoU,
LoI)
Co-financed
technical
cooperation (TC)
projects
Main
features
• Large-scale
DPPs
• Various
sectors
• Frequently in
more than
one country
and involving
several
companies
• Companies
provide
additional
funds
(parallel to
project
budget)
• No money
transfer from
one party to
another
• No
contractual
commitment
required
• Planned and
implemented with
companies (local,
national and/or
international) in
the partner
country
• Planned and
implemented with
ministries, NGOs
and other non-
profit
organizations
• Memorandum of
Understanding
• Letter of Intent
… for common
objectives; often
specified in
additional work
plans
• Company
provides
additional
funds to
facilitate the
expansion of a
TC project
Budget
public
≤ 50% No specification ≤ 40%
Maximum
Euro 200.000
No specification Not applicable No set percentage
contribution
Budget
private
≥ 50%
Minimum
Euro 750.000
(total volume)
No specification ≥ 60 % No specification Not applicable Variable threshold
of third-party