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Professor Noble Banadda
Dakar, 16 April 2019www.mamopanel.org
MALABO MONTPELLIER PANEL
Mechanized: Transforming Africa’s
agriculture value chains
©MaMo Panel
Overview
Potential and status of
mechanization
Opportunities and risks
Policy lessons from country
case studies
Low mechanization slows development
Africa’s creative farmers lack
machinery capital, and that
keeps labor productivity low
Lack of machinery keeps output
growth low
But simply more machinery is not
the solution
©MaMo Panel
New Dynamism: Drivers of mechanization
Changes in agriculture
•Labor shortages
•Medium-scale farms
•Services for
mechanization on small
farms at low cost
Changes in the food
system
•rapid urbanization
•demand for processed
products
Mechanization Potential in the Whole Food Value Chain
Photos by KickStart, ZEF and Alliance for Rural Electrification
©MaMo Panel
Mechanization for a better food system - Benefits
Reduced drudgery
Timeliness and efficiency of farm
operations
Reduce post-harvest losses
Processing and transformation of crops
Value addition
Employment and entrepreneurship
opportunities
Farm size as a key driver
©MaMo Panel
Medium-scale farms account for a
rising share of total farmland
20% in Kenya, 32% in Ghana, 39% in
Tanzania, and > 50% in Zambia
Growth and urbanization as a key driver
Un-processed Processed Low value
Added
Processed High value
Added
Non-Perishable 4x
(8%)
5.5x
(17%)
7x
(23%)
Perishable 6.5x
(20%)
8X
(18%)
10X
(15%)
The rise of processed food sectors
Projected Demand Growth 2010 – 2040
(Estimated Purchased Food Budget Share in 2040 in parenthesis)
Source: Tschirley, D et al. 2014.
Successful Mechanization Practices: Production
The Pedal Pump
• Burkina Faso, Uganda
Rice thresher-cleaner
• Senegal River Valley
Two-wheel tractor
• Kenya, Tanzania
Tractor Hiring Services
• Malawi, Ethiopia, Nigeria
Successful Mechanization Practices: Post-harvest
Solar cold station / dryer: Nigeria
Motorized Tricycle: Ghana
Tricycle milk collection: Senegal
Staples processing:
Cereals: millet, Senegal
Fruits: mango, Kenya
Roots & tubers: cassava, Nigeria
Mechanization and employment
Mechanization contributes to
job creation if:
• Responsive to labor shortages
• Focused across the value chain
• Coupled with training and skills
development
• Triggers domestic manufacturing ©MaMo Panel
©MaMo Panel
Mechanization risks
Misuse/mismanagement of machinery
Rise in rural unemployment in areas with no
labour shortage
Risks of soil erosion and compaction
Exclusion of smallholder farmers
Underinvestment in R&D and testing leading
to ill-adapted technologies
Where progress has taken place
Sustained agricultural growth above 4% requires machinery growth above ca. 2.5%
Source: Kirui and von Braun (2018)
High
Machinery
Growth
Low
Machinery
Growth
Angola, Botswana, Ethiopia,
Malawi, Mali, Morocco,
Niger, Rwanda, Tanzania,
Togo, Zambia
Burkina Faso, Burundi,
Gambia, Senegal, South
Africa, Former Sudan
Algeria, Benin, Cameroon,
Chad, Ghana, Mozambique,
Sierra Leone
High Agricultural Growth Low Agricultural Growth
Where progress has taken place
Country Machinery Growth* Agricultural output* Biennial Review**
Ethiopia 2.75 5.20 6.03
Malawi 2.69 6.20 3.90
Mali 4.65 4.70 4.56
Morocco 3.67 4.00 7.46
Rwanda 2.73 5.50 6.05
Tanzania 2.88 6.60 3.67
Zambia 3.12 8.50 5.74
*Source: Based on data from World Bank, OECD, FAO, USDA Economic Research Service, and national
statistical offices.
** Malabo Commitment #3.1 “Access to agriculture inputs and technologies” had a minimum score of 5.53 in the
2018 African Union Biennial Review.
Successful actions – experiences from 7 countries
Actions at three levels:
1. Institutional
2. Programmatic
3. Implementation
With attention to specifics
Dedicated government programs
PPPs
Attention to downstream value
chains
R&D, skill development and
training
Hiring services / Uberization
New technologies
Who has done what right?
Ethiopia
• Hiring services
• Parts and maintenance
• Training and skill
development
Mali
• Local manufacturing
• Incubation centers targeting
youth
Morocco
• Subsidies and partnerships
with banks
• Partnership with equipment
importers
Rwanda
• Village level mechanization
services
• Research and Development
Selected Successful Actions by Leading Countries
Conducive business and services environment in Ethiopia
©MaMo Panel
An emphasis on hiring
services driven by public
and private sector
engagement in agricultural
technology supply system.
©Ethiopia News Agency
©MaMo Panel
Capacity building and skill development in Mali
Institute of Training and Applied Research
• design and manage drying, storage, and
primary processing;
• cold circuits and transport;
• use and maintenance of equipment,
• design and implement mechanization
programs;
• how to develop a business plan.
Supportive fiscal measures in Morocco
Subsidized agricultural
equipment acquisition
program through the
Agricultural Development
Fund and Plan Maroc Vert.
©Valentin Munitsa
©The New Times
Private sector involvement in Rwanda
Rwanda Agriculture Board
Development Bank of Rwanda invests
US$170m (2017-2022) in agro-processing
development program
FDI by Nigerian investor BlackPace Africa
Group on potato value chain development.
The MaMo Panel’s 7 recommendations on mechanization
(1/2)
Prioritize national agricultural mechanization investment
strategies within countries’ NAIPs
Prioritize mechanization in every segment of the agriculture
value chain
Design socially sustainable mechanization pathways
Empower smallholder farmers and women groups
The MaMo Panel’s 7 recommendations on mechanization
(2/2)
Increase investments in supportive infrastructure and training
facilities
Create a conducive business and services environment
Develop an African agricultural machinery industry
@MaMoPanel MaMoPanel The Malabo Montpellier Panel
Thank you!

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Mechanization conference, Dakar_Transforming Africa's Agricultural Valu Chains by Prof. Noble Banadda

  • 2.
  • 3. ©MaMo Panel Overview Potential and status of mechanization Opportunities and risks Policy lessons from country case studies
  • 4. Low mechanization slows development Africa’s creative farmers lack machinery capital, and that keeps labor productivity low Lack of machinery keeps output growth low But simply more machinery is not the solution ©MaMo Panel
  • 5. New Dynamism: Drivers of mechanization Changes in agriculture •Labor shortages •Medium-scale farms •Services for mechanization on small farms at low cost Changes in the food system •rapid urbanization •demand for processed products
  • 6. Mechanization Potential in the Whole Food Value Chain Photos by KickStart, ZEF and Alliance for Rural Electrification
  • 7. ©MaMo Panel Mechanization for a better food system - Benefits Reduced drudgery Timeliness and efficiency of farm operations Reduce post-harvest losses Processing and transformation of crops Value addition Employment and entrepreneurship opportunities
  • 8. Farm size as a key driver ©MaMo Panel Medium-scale farms account for a rising share of total farmland 20% in Kenya, 32% in Ghana, 39% in Tanzania, and > 50% in Zambia
  • 9. Growth and urbanization as a key driver Un-processed Processed Low value Added Processed High value Added Non-Perishable 4x (8%) 5.5x (17%) 7x (23%) Perishable 6.5x (20%) 8X (18%) 10X (15%) The rise of processed food sectors Projected Demand Growth 2010 – 2040 (Estimated Purchased Food Budget Share in 2040 in parenthesis) Source: Tschirley, D et al. 2014.
  • 10. Successful Mechanization Practices: Production The Pedal Pump • Burkina Faso, Uganda Rice thresher-cleaner • Senegal River Valley Two-wheel tractor • Kenya, Tanzania Tractor Hiring Services • Malawi, Ethiopia, Nigeria
  • 11. Successful Mechanization Practices: Post-harvest Solar cold station / dryer: Nigeria Motorized Tricycle: Ghana Tricycle milk collection: Senegal Staples processing: Cereals: millet, Senegal Fruits: mango, Kenya Roots & tubers: cassava, Nigeria
  • 12. Mechanization and employment Mechanization contributes to job creation if: • Responsive to labor shortages • Focused across the value chain • Coupled with training and skills development • Triggers domestic manufacturing ©MaMo Panel
  • 13. ©MaMo Panel Mechanization risks Misuse/mismanagement of machinery Rise in rural unemployment in areas with no labour shortage Risks of soil erosion and compaction Exclusion of smallholder farmers Underinvestment in R&D and testing leading to ill-adapted technologies
  • 14. Where progress has taken place Sustained agricultural growth above 4% requires machinery growth above ca. 2.5% Source: Kirui and von Braun (2018) High Machinery Growth Low Machinery Growth Angola, Botswana, Ethiopia, Malawi, Mali, Morocco, Niger, Rwanda, Tanzania, Togo, Zambia Burkina Faso, Burundi, Gambia, Senegal, South Africa, Former Sudan Algeria, Benin, Cameroon, Chad, Ghana, Mozambique, Sierra Leone High Agricultural Growth Low Agricultural Growth
  • 15. Where progress has taken place Country Machinery Growth* Agricultural output* Biennial Review** Ethiopia 2.75 5.20 6.03 Malawi 2.69 6.20 3.90 Mali 4.65 4.70 4.56 Morocco 3.67 4.00 7.46 Rwanda 2.73 5.50 6.05 Tanzania 2.88 6.60 3.67 Zambia 3.12 8.50 5.74 *Source: Based on data from World Bank, OECD, FAO, USDA Economic Research Service, and national statistical offices. ** Malabo Commitment #3.1 “Access to agriculture inputs and technologies” had a minimum score of 5.53 in the 2018 African Union Biennial Review.
  • 16. Successful actions – experiences from 7 countries Actions at three levels: 1. Institutional 2. Programmatic 3. Implementation With attention to specifics Dedicated government programs PPPs Attention to downstream value chains R&D, skill development and training Hiring services / Uberization New technologies
  • 17. Who has done what right? Ethiopia • Hiring services • Parts and maintenance • Training and skill development Mali • Local manufacturing • Incubation centers targeting youth Morocco • Subsidies and partnerships with banks • Partnership with equipment importers Rwanda • Village level mechanization services • Research and Development Selected Successful Actions by Leading Countries
  • 18. Conducive business and services environment in Ethiopia ©MaMo Panel An emphasis on hiring services driven by public and private sector engagement in agricultural technology supply system. ©Ethiopia News Agency
  • 19. ©MaMo Panel Capacity building and skill development in Mali Institute of Training and Applied Research • design and manage drying, storage, and primary processing; • cold circuits and transport; • use and maintenance of equipment, • design and implement mechanization programs; • how to develop a business plan.
  • 20. Supportive fiscal measures in Morocco Subsidized agricultural equipment acquisition program through the Agricultural Development Fund and Plan Maroc Vert. ©Valentin Munitsa
  • 21. ©The New Times Private sector involvement in Rwanda Rwanda Agriculture Board Development Bank of Rwanda invests US$170m (2017-2022) in agro-processing development program FDI by Nigerian investor BlackPace Africa Group on potato value chain development.
  • 22. The MaMo Panel’s 7 recommendations on mechanization (1/2) Prioritize national agricultural mechanization investment strategies within countries’ NAIPs Prioritize mechanization in every segment of the agriculture value chain Design socially sustainable mechanization pathways Empower smallholder farmers and women groups
  • 23. The MaMo Panel’s 7 recommendations on mechanization (2/2) Increase investments in supportive infrastructure and training facilities Create a conducive business and services environment Develop an African agricultural machinery industry
  • 24. @MaMoPanel MaMoPanel The Malabo Montpellier Panel Thank you!