Regional Value Chain Development
and Promotion in Africa
ECA-AUC-FAO
An ECA Presentation at the
Seventh Session of the Committee on Food Security and
Sustainable Development (CFSSD-7) and
the Africa Regional Preparatory Conference for the United
Nations Conference on Sustainable Development ( Rio+20)
Addis Ababa, Ethiopia,
20 October, 2011
Agriculture is the Backbone of African Economies but:
– Land productivity is less than 55% of world average yields for rice and 34%
for maize.
– Labor productivity is less than 60% of that in Asia and Latin America.
– Share of global agricultural exports fell from 15% in the mid-1960s to less
than 4% currently.
– Food imports are increasing at a rate 3.2% per year since the early 1990s.
– Regional economies are extremely fragmented along sub-regional and
national lines – sub-optimal economic space.
– Market segments closed to each other are fragmented but increasingly open
to global trade outside of Africa.
– There are constrained perception of investment and trade opportunities for
African agribusiness communities.
– There lacks a vibrant agribusiness industry and services sector to link
farmers to evolving input and product markets
Multitude of RECs with Overlapping Memberships
Vision : food and agricultural
commodities belts in optimal
agro-ecological production
zones (Preferential Investments
Zones)
Agricultural Value Chain
Development and Promotion
from a Regional Perspective
To address the fragmentation of African food and
agriculture economy and to maximize the
exploitation of regional markets:
– Economies of complementarities and intra-African
trade potential – “Comparative” and
“Competitive” advantage beyond national
boundaries
– Economies of scale at all stages of the value chains
– Economies of vertical coordination (transactions)
among the productive/services sectors involved in
value chains
Deepen regional integration for the development of coordinated
value chains of the strategic agricultural commodities by:
– Moving market integration beyond national and sub-regional
levels to encompass the global regional market -- Common
African Market
– Mapping potential regional production and processing belts of
strategic commodities (REC x Agro-ecological approach)
– Creating an enabling environment for profitable and secure
private investment in coordinated regional agricultural input
and commodity value chains -- preferential subregional/regional agricultural investment zones
– Designing and implementing policies, legal and institutional
frameworks, and PPPs to promote private investment in
regional agribusiness joint ventures – investment codes, land
policies, fiscal policies, etc.
In summary, link efforts on CAADP pillars around the explicit
objective of developing regionally-coordinated value chains of
strategic commodities for agriculture to yield its full potential in:
– Enhancing food security (reliable and affordable supply)
– Creating value-added and employment, especially for women and the
poor (rural and urban)
– Providing capital and inputs to other economic sectors
– Creating demand for the non-farm sectors
– Improving export performance (integration in the global economy)
A Multi-Institutional Approach for A
Successful and Sustainable Project
ECOWAS
Rice Livestock
Lead Institutions
Support Institutions
Other Stakeholders
Africa
Rice
Center ILRI
FARA,
CORAF,
ASARECA,
IWMI,IFDC
NARS
COMESA
Maize Livestock
CIMMYT ILRI
IITA, IWMI, IAPSC,
African Agriculture
Technology, ASN,
NARS, ASBP,IFDC
Development Institutions {AUC (DREA,
TRADE, IBAR, SAFGRAD, NEPAD PCA), UN
(ECA FSSDD, TRADE, FAO, UNIFEM, UNDP),
IFDC, IFPRI, AGRA, USAID, AfDB, WB};
Private Sector {Associations, Pan African
Farmers’ Forum, ROPPA }; National and
Regional Institutions {MOA, MOT}
What has been done and Where we
are going?
CN
&EGM
Field
Consult
Missions
& Baseline
Studies
Validation/E
GM/Symposi
um & RECs
Ministerial
Mtgs
1.Reg.
Assmt
Studies
with CC,
LT and
Trade, CM
2. Inputs
for RPF
1. RPF
Development
2.Africa PPP
Dialogue Mtg
3. RPF
Finalization
4. AU Head of
State
Capacity
Bldg &
Disseminat
ion and
Domestica
tion of the
RPF
Outcomes/Outputs
Increased awareness of policy makers and key stakeholders on:
1. The benefits and potential for regionally integrated value
chains for selected strategic commodities as well as
document
2. The underlying issues, challenges, needs and gaps that need
to be addressed to facilitate agricultural development in Africa
Strengthened capacities of African policy makers and key
stakeholders to mainstream the development and promotion of
regional value chains in their agricultural development action
plans
A Regulatory and Policy Framework (RPF) for developing
Agricultural Regional Value Chains in Africa as a roadmap for
implementing the development and promotion of regional value
chains in Africa
AMESEGNALEHU!
THANK YOU!
MERCI!