COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture

1. COUNTRY CAADP IMPLEMENTATION:Public Investments in African Agriculture Martin Bwalya NEPAD Agency

2. Socio-economic growth and improved standard of living and clean environment Wealth creation and support to industrialization Food Security and Income Generation (Poverty Alleviation) High and sustainable Agriculture Performance 10% Public Expenditure allocation to Agriculture Target goal of 6% annual growth rate in agriculture productivity Organizational development and Institutional reforms Policy reforms and policy review structures Partnerships and coalitions and collective responsibility Capacity development and alignment/harnessing Knowledge; analysis and evidence based planning

3. CAADP: MAIN PRINCIPLES AND TARGETS • Country-led • Comprehensive - cross-sector/ cross-government • Multi-stakeholder engagement - CSOs, Private sector, Govt, Farmers, DPs • Evidence-based planning • Peer review, mutual accountability and M&E • Regional complementarities

4. CAADP: MAIN PRINCIPLES AND TARGETS • Principle of agriculture led growth as a main strategy to eradicate extreme poverty and hunger (MDG1) • Pursuit of 6% annual average growth for sector at the national level • Allocation of at least 10% of national budgets to the agriculture sector • Exploitation of regional complementarities and cooperation to boost growth • Application of the principles of policy efficiency, dialogue, peer review, and accountability at all levels • Application of the principle of inclusiveness

6. Compact Signing • Details on the general country specific strategy and roadmap discussed, agreed and annexed to the Compact • Specifying what actions, how and by whom, plus timeline for investment plan preparation and review and high level business meeting date 1 Post Compact Roadmap Detailed Investment plan formulation Managed and implemented by Gov and local DWG; coordinated by RECs Participation of key stakeholders, including,farmers organizations -private sector institutions, CSO, etc… Submission of investment plan to RECs and CAADP Secretariat 2 Technical Review/Evaluation undertaking (due diligence process) Review by AUC/NEPAD, RECs, PLIs, IFPRI, ReSAKSS, FAO Investment Center, independent consultants, where required Circulation of investment plans and review report Business Meeting to validate and finance investment plans Implementation readiness confirmed and funding levels and modalities agreed 31 4 Non-financed programmes Programmes with finance committed Further work on resource mobilization Government–led negotiations on financing and financing plan, and implementation arrangements

7. Countries actively engaging in CAADP GTZ: Bewässerung GTZ: Fischerei Pillar II: CMOA GTZ: Landwirtschaftliche Entwicklung Pillar III: CILLSS Pillar IV: FARA GTZ: Marktorientierte Landwirtschaft GTZ: Waldprogramm GTZ:ländliche Wirschaftsentwicklung July 2010

8. Table 1: Countries with compacts /Investment Plans

9. Overview of the investment areas and budget

10. Share of countries meeting the 10% target • There are 2 components to MDG1: hunger and poverty • Great progress has been made in many countries that are meeting one or the other, but only one – Ghana – is currently meeting both • In 2003, only 5.9% of African countries were spending at least 10% of their total budget allocations on agriculture • This figure increased to 15.2% in 2007 and to 35.7% in 2008 Burkina Faso Cameroon C. African Rep. Egypt Ethiopia Guinea Kenya Lesotho Mali Senegal Swaziland Tanzania Algeria Angola Benin Botswana Burundi Gambia Guinea Bissau Mauritania Namibia Sao Tome & Principe Sources: Based on ReSAKSS data collected from various national government sources and IMF 2009. Ghana Countries on track towards halving poverty by 2015 Countries on track towards achieving MDG1 Countries on track towards halving hunger by 2015

12. Toward Enhancing Public Investments in Agriculture Fact: Agriculture = providing for best returns on Investments – both in (i) Profits and (ii) impact Highest potential to directly translate into incomes for poorer sections of community Found on Africa’s own strength – natural resource Africa = raise public expenditure into agriculture to at l0% annually Challenges/Opportunities: Population growth / Urbanization Climate change Political Stability and Government inclusiveness

13. Toward Enhancing Public Investments in Agriculture  Triggering the demand side  Investment in base infrastructure and services  Off-farm / industrialization Investment (Storage, Processing, Industrial use, etc…)  Support to regional and local trade (infrastructure, information, etc…)  Align to /complement Public Sector and ODA financing

14. THANKS !!!

15. Share of countries meeting the 10% target • There are 2 components to MDG1: hunger and poverty • Great progress has been made in many countries that are meeting one or the other, but only one – Ghana – is currently meeting both • In 2003, only 5.9% of African countries were spending at least 10% of their total budget allocations on agriculture • This figure increased to 15.2% in 2007 and to 35.7% in 2008 Burkina Faso Cameroon C. African Rep. Egypt Ethiopia Guinea Kenya Lesotho Mali Senegal Swaziland Tanzania Algeria Angola Benin Botswana Burundi Gambia Guinea Bissau Mauritania Namibia Sao Tome & Principe Sources: Based on ReSAKSS data collected from various national government sources and IMF 2009. Ghana Countries on track towards halving poverty by 2015 Countries on track towards achieving MDG1 Countries on track towards halving hunger by 2015