The document summarizes the FAO Investment Centre's role in supporting increased public and private investment in agriculture and rural development. It describes the Investment Centre's mandate to work with member states and international financing institutions to strengthen countries' capacity to plan, design, and implement investment projects. It provides an overview of the types of public and private domestic and foreign investors involved in agriculture. The Investment Centre leverages FAO's technical expertise and networks to help design inclusive investment programs that contribute to strategic objectives around sustainable production, value chains, resilience, and other areas.

1. FAO Investment Centre
Africa Service (TCIA)
For increased and more effective public and private
investment in agriculture and rural development
Alberta Mascaretti
Accra, 11 April 2016

2. The investment landscape in FSNARD
Accumulation of capital (physical, human, natural, social and
financial) that yields returns over time
Public Private
Domestic  National and subnational
Governments
 Small and medium farmers, large majority being
family farmers
 Cooperatives and other farmer organizations
 Agribusiness enterprises and farming operations
 Informal lenders, landowners and input suppliers
 Banks
 Foundations
Foreign  Bilateral donors
 International Financial Institutions
(e.g. EBRD, IFAD, IFC, World
Bank, regional development
banks)
 Multilateral donors (e.g. UN
organizations, GEF)
 Agribusiness enterprises and farming operations
 Consumer goods and retail companies
 Investment funds
 Private banks
 Foundations
 Remittances

3. Private sector, especially farmers, is
responsible for most investment in FSNARD
0
20
40
60
80
100
120
140
160
180
On-farm
investment in
agricultural capital
(76)
Government
investment (76)
Public spending on
agricultural R&D
(42)
Official
development
assistance (70)
Foreign direct
investment (36)
Billion US$
Domestic
Private Public Public Private
Foreign
(averages 2005-07 – SOFA 2012)

4. From Strategic Objectives to impact
Role of investment support in achieving quality impact at
scale

5. FAO is well positioned to support
investment in FSNARD…
 Political mandate as Global repository of
knowledge and data on FSNARD
 Respected for setting standards and regulatory
instruments
 Unique technical knowledge in key sectors
 Broad network, country level presence and
CPFs
 Recognized Centre of investment-related
expertise

6. TCI Mandate and partners
Origin of TCI;
FAO - World Bank Cooperative Programme(1964)
Purpose:
“assist in increasing investment in agriculture and
strengthen national capacity to plan, design and implement
investment operations”

7. TCI Mandate and partners
HOW?
1. Support member states in partnership with International
Financing Institutions (IFIs): cost-sharing arrangements
cooperative agreement programmes with IFIs:
World Bank (WB), IFAD, African Development Bank
(AfDB) mainly in Africa;
2. Support member states directly through trust funds, FAO
TCPf, TCP etc. e.g support to CAADP process (NAIPs)

8. TCI’s cost-sharing arrangement
 COST-SHARING ARRANGEMENT
 60% of TCI’s annual budget is funded through the
“billing” of its services to IFI’s, TFs, TCP (USD 21
million); of this, FAO-CP with the World Bank
contributes USD 14 million.
 The remaining 40% is covered by FAO Regular
Programme funds
 Thanks to this cost-sharing arrangement, the FAO
Investment Centre (TCI) is recognized as an impartial
partner and credible link between countries and IFIs.

9. Some figures (Global)
operations in over 100 countries
 4,000 staff weeks delivered yearly (staff&consultants); of
which about 1,200 SW in Africa
700 missions yearly
Partners: (with differences between regions)
 60 % World Bank
 30 % other IFIs (EBRD, IFAD, etc.)
 10 % TCPf, TCP and Trust Funds
 TCI hosting the FAO-GEF Unit

10. TCI Expertise; mobilizing FAO’s knowledge
About 100 professional staff (including ST staff) with mixed
expertise:
 Economics
 Institutions and capacity development
 Agribusiness, rural finance, value chains, marketing
 Agriculture and livestock
 Irrigation and water management
 Environmental, natural resources management, climate change
 Rural sociology, gender and community development
 Investment planning at country & sub-regional level (including sector-wide
approaches and NAIP/RAIP)
and also……mobilization of FAO expertise from Technical
Divisions, FAORs, DOs and a strong network of international and
national consultants

11. Presenting TCIA

12. Presenting TCIA
o 29 professional staff (including 10 ST) + 9 general
service staff; total 38 staff
o 7 vacant posts
o 9 Investment Support Officers (ISOs) out-posted
positions of which 6 filled to date;
 1 RAF
 2 SFE
 1 SFS
 1 Pretoria
 1 Kenya

13. Investments accross SPs
 All agricultural investment projects designed with TCIA’s
support contribute to various SPs and may be relevant to
more than one Regional Initiative simultaneously
 The majority focus on improving sustainable production (SP-
2) and improving value chains (SP-4). This is seen as the
means to reduce poverty, improve incomes and food security.
 In many cases, issues related to resilience, CC adaptation,
nutrition, gender and youth are also mainstreamed into
projects;
 TCI work is “Cooperative Technical Activity” (CTA)

14. TCIA contributions to SPs/RIs

15. How do we work (and should work) at country
level?
 TCI provides experts who join formulation/implementation missions
led by IFI’s working with Government counterparts;
 All TCI missions are announced to FAORs and missions meet
FAORs for briefings and de-briefings
 TCI staff are encouraged to familiarize themselves with the FAO
country programme and main activities (CPF / RIs)
 Maximize mainstreaming of FAO knowledge and experience in
investment programmes
 Facilitate FAO’s TA Services through co-financing or UTFs eg
Angola, Congo, Niger, S.Sudan….
 TCI to assist FAOR’s directly to respond to specific demands from
countries; resources need to be available

16. Areas for improvement
 More pro-active effort of TCI staff in information and
knowledge sharing and facilitating contacts with IFI in-country
staff at country level;
 Mainstream FAO investment support in the country CPFs and
report on FAO’s support to investment;
 TCIA to keep more active dialogue with FAORs in particular,
but also SPLs, RI delivery managers, Sub-regional coordinators
(and vice-versa)
 TCIA, together with FAO country teams, look for opportunities
for FAO to provide Technical Assistance services to countries
for the implementation of investment operations (synergies with
on-going FAO assistance and/or UTFs/TCPs).

17. Thank You