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Agricultural governance and Food Security: Where does Africa stand ?

Agricultural governance and Food Security: Where does Africa stand ?. Wednesday 2nd February 2011 Ousmane Djibo NEPAD Planning and Coordinating Agency. Brussels Policy Briefing n° 21 Geopolitics of Food: implications for ACP countries. Constraints faced by the African continent.

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Agricultural governance and Food Security: Where does Africa stand ?

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  1. Agricultural governance and Food Security: Where does Africa stand ? Wednesday 2nd February 2011 Ousmane Djibo NEPAD Planning and Coordinating Agency Brussels Policy Briefing n° 21 Geopolitics of Food: implications for ACP countries

  2. Constraints faced by the African continent • Tougher international competition • Exogenous shocks: Global market/Food crisis, international financial crisis, global climate change,, HIV/AIDS • Lack of social cohesion, political stability, and bureaucratic capacity • Weak governance • Weak national political commitment • Weak donor commitment

  3. Source: IFPRI, Badiane (2008)

  4. B U T . . .

  5. Le Monde 16 September 2010 • Foreign capital investment increase from USD 9 to 62 billion between 2000 and 2008 (similar to China) • Continent with the highest return of investment - Guillaume Chaloin, Meeschart Asset Management • In the telecommunications industry the rate of penetration, which is 37% today, projected to rise to 80%.

  6. The agricultural potential of SSA • The African Guinea Savannah is one of the largest underused agricultural land reserves in the world • 60% of uncultivated arable land worldwide are in Africa • about 600 million hectares in SSA, of which about 400 million hectares can be used for agriculture • less than 10 percent are cropped

  7. Comparative advantages • Farm-level production costs in Africa are competitive, This derives mainly from: • very low returns to labor • limited use of purchased inputs • Africa’s producers are generally competitive in domestic markets BUT generally not competitive in global markets • Regional markets appear to offer the most promising opportunities for expansion over the short-to-medium term

  8. Comparative advantage ctd • The competitiveness of African countries is undermined by inefficiencies in domestic logistics • Smallholders farmers have a critical role to play as a source of competitiveness • Investments in smallholder agriculture is an important source of competitiveness in their own right • higher level of second-round demand effects that occur when income gains

  9. Comparative advantage ctd • Bright prospects for commercial agriculture • Rapid economic growth and strong demand prospects • The continent of the • Increased incentives to invest in agriculture • New technologies • Advanced technology for soil management • The biotechnology revolution

  10. Interventions required • Continuing macro policy reforms • Land policy reforms • Scaling up public investments • Inducing private investment • Institutional reforms to make markets work better • Public sector reform and governance • Management of social impacts • Management of environmental impacts

  11. The contribution of CAADP • 24national compacts • 1 regional compact

  12. Agriculture GDP growth and CAADP • The CAADP agriculture GDP growth rate target is 6% • In 2008, ten countries met the CAADP’s 6% target: • Angola, Ethiopia, Mali, Mozambique, Namibia, Niger, Rwanda, Senegal, Tanzania, and Uganda. • Nineteen other countries attained moderate agricultural GDP growth rates of between 3 and 6 percent. • In the same year, eight countries experienced negative growth in their agriculture sectors. Source: ReSAKSS calculations based on World Bank 2009.

  13. The contribution of CAADP Increase of the share of countries meeting the 10% • 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 Sources: Based on ReSAKSS data collected from various national government sources and IMF 2009.

  14. Agricultural performance • Although agricultural performance varies within and across African countries, recent trends indicate an increase in agricultural GDP growth at the continental and regional levels • SSA’s agriculture GDP growth rate increased from an annual average of 3.0% in the 1990s and 2000s to 5.3% in 2008 • A similar trend can be observed at the regional level Source: World Bank 2009. Note: 2009 GDP estimates are from International Monetary Fund (IMF) 2009.

  15. What to do to sustain this encouraging trend ?

  16. Engagement and partnership development • Key milestones: • Government Commitment • Good governance CAADP DP Task Team joint visit to ADWGs

  17. Stage 2: Evidence-based planning • Key milestones: • Stocktaking analysis CAADP DP Task Team joint visit to ADWGs

  18. Building alliances for investment • Key milestones: • Investment planning and review (Pro-Poor Growth oriented) CAADP DP Task Team joint visit to ADWGs

  19. Stage 4: Program implementation, M&E, and peer review • Key milestones: • Collective • commitment CAADP DP Task Team joint visit to ADWGs

  20. THANK YOU

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