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

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

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

COUNTRY CAADP IMPLEMENTATION:

Public Investments in African Agriculture

Martin BwalyaNEPAD Agency

Page 2: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

High and sustainable Agriculture Performance

Food Security and Income Generation (Poverty Alleviation)

Wealth creation and support to

industrialization

Socio-economic growth and improved standard of living

and clean environment

Organizational development

and Institutional reforms

Target goal of 6% annual growth rate in

agriculture productivity

Partnerships and coalitions and

collective responsibility

Capacity development and alignment/harnes

sing

Policy reforms and policy

review structures

Knowledge; analysis and

evidence based planning

10% Public Expenditureallocation to Agriculture

Page 3: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

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

Page 4: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

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

Page 5: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency
Page 6: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

Post Compact Roadmap

Compact Signing

Detailed Investment plan formulation

Technical Review/Evaluation undertaking (due diligence process)

·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

Implementation readiness confirmed and funding levels and modalities agreed

Government–led negotiations on financing and financing plan, and

implementation arrangements

Submission of investment plan to RECs and CAADP

Secretariat

Managed and implemented by Gov and local DWG; coordinated by RECs

Participation of key stakeholders, including, farmers organizations

-private sector institutions, CSO, etc…

Review by AUC/NEPAD, RECs, PLIs, IFPRI, ReSAKSS, FAO Investment Center, independent consultants, where requiredCirculation of investment

plans and review report

Business Meeting to validate

and finance investment plans

Further work on resource mobilization

Programmes with finance committed

Non-financed programmes

1

31

2

4

Page 7: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

Countries actively engaging in CAADP

July 2010

Page 8: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

REC Countries that have signed Compacts Dates when Compacts signed

Countries whose National Agriculture and Food

Security Investment Plans have been developed and

Reviewed

COMESA

1. Burundi 24-25 August 2009

1. Ethiopia 27-28 September 2009 Reviewed

1. Malawi 19th April 2010 Reviewed

1. Rwanda 30-31 March 2007 Reviewed

1. Uganda 3031- March 2010 Reviewed

1. Kenya 23-24 July 2010 Reviewed

ECOWAS

1. Burkina Faso 22nd July 2010 To be reviewed 17-25/10

1. Gambia 27-28 October 2009 Reviewed

1. Ghana 27-28 October 2009 Reviewed

1. Benin 15-16 October 2009 Reviewed

1. Cape Verde 10-11 December 2009 Reviewed

1. Guinea 6-7 April 2010 Reviewed

1. Liberia 5-6 October 2009 Reviewed

1. Mali 12-13 October 2009 Reviewed

1. Niger 29-30 September 2009 Reviewed

1. Nigeria 12-13 October 2009 Reviewed

1. Togo 29-30 July 2009 Reviewed

1. Seirra Leone 17-18 September 2009 Reviewed

1. Senegal 9-10 February 2010 Reviewed

1. Ivory Coast 26-27th July 2010

SADC1. Swaziland 3-4 March 2010

1. Tanzania 6-8 July 2010 November

Table 1: Countries with compacts /Investment Plans

Page 9: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

Overview of the investment areas and budgetFinancing Country CAADP Investment Plan Implementation: STATUS REPORTS (Source: NPCA Website as at 12 April 2010)

COUNTRY Priority Investment Areas

Total Budget (2009-2015)

US$ Budget Sources (US$)

Govt Gap Pvt Sector Devpt Partners

The Gambia

Improvement of water management 63,044,000 6,304,400 56,739,600

Improved management Fishery, Forestry,Wildlife 15,633,600 1,563,360 14,070,240 Development of agricultural chains and market promotion 106,130,000 10,613,000 95,517,000 Prevention, Management of Food Crisis & Natural Disasters 40,458,000 4,045,800 36,412,200

Sustainable Farm Management 22,230,000 2,223,000 20,007,000

Institutional capacity building for implementation 14,275,835 1,427,584 12,848,252

Totals 261,771,435 26,177,144 235,594,292

Ghana

Food Security and Emergency Preparedness 2,374,300,000

Promoting commodity development 414,600,000

Increased competitiveness markets integration 96,900,000

Sustainable management of land and water 24,700,000

Science and technology applied in food and agriculture 92,200,000

Enhanced institutional coordination 106,700,000

Totals 3,109,400,000

Liberia

Land and water management 35,000,000

Food and Nutrition security 60,000,000

Competitive value chain and market linkage 115,000,000

Institiutinal Development 67,500,000

Totals 277,500,000

Page 10: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

Share of countries meeting the 10% target

• 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

2002 2003 2004 2005 2006 2007 20080

10

20

30

40

50

60

70

More than 10% 5%-10% Less than 5%

Shar

e of

rep

ortin

g co

untr

ies

(%)

Sources: Based on ReSAKSS data collected from various national government sources and IMF 2009.

• 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

Burkina Faso Cameroon

C. African Rep. Egypt

Ethiopia Guinea Kenya

Lesotho Mali

SenegalSwaziland Tanzania

Countries on track towards halving poverty

by 2015

Countries on track towards halving hunger by 2015

Countries on track towards achieving

MDG1

Algeria AngolaBenin

BotswanaBurundiGambia

Guinea BissauMauritania

NamibiaSao Tome &

Principe

Ghana

Page 11: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

30%

20%30%

15% 5%

Overview of the share of budget of the priority investment areas

Food Security and Nutrition and management of natural disaster Sustainable land and water managementValue Chain Promotion and Market LinkageScience and technology applied in food and agricultureEnhanced institutional capacities and coordination

Page 12: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

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

Toward Enhancing Public Investments in Agriculture

Challenges/Opportunities: Population growth / Urbanization

Climate change

Political Stability and Government inclusiveness

Page 13: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

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

Page 14: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

THANKS !!!

Page 15: Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

Share of countries meeting the 10% target

• 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

2002 2003 2004 2005 2006 2007 20080

10

20

30

40

50

60

70

More than 10% 5%-10% Less than 5%

Shar

e of

rep

ortin

g co

untr

ies

(%)

Sources: Based on ReSAKSS data collected from various national government sources and IMF 2009.

• 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

Burkina Faso Cameroon

C. African Rep. Egypt

Ethiopia Guinea Kenya

Lesotho Mali

SenegalSwaziland Tanzania

Countries on track towards halving poverty

by 2015

Countries on track towards halving hunger by 2015

Countries on track towards achieving

MDG1

Algeria AngolaBenin

BotswanaBurundiGambia

Guinea BissauMauritania

NamibiaSao Tome &

Principe

Ghana